Visualizing the World's Supply of Silver

Adam Taggart
By Adam Taggart on Sat, Mar 2, 2013 - 8:51am

Demonocracy is out with another excellent visualization. This time, it's of all the silver in the world.

It really helps hit home how silver, like gold, has desirable scarcity as a source of money (unlike fiat currencies).

Now watch the video below visualizing the US debt and ask yourself: Which do I trust more as a store of value: precious metals, or US dollars?

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14 Comments

thebrewer's picture
thebrewer
Status: Silver Member (Offline)
Joined: Nov 7 2012
Posts: 110
Angry and sad

I think all of their videos are phenomenal, but I have to admit that this one of the debt in $100 bills gives me a sense of hopelessness. It really makes me realize that things can only continue downhill until the crash. I am diligently preparing myself and my family for this but wishing there was still hope of stopping this train wreck.

The world my children and grandchildren grow up in will be drastically different than the one I've grown up in. Makes me angry and sad.

SingleSpeak's picture
SingleSpeak
Status: Platinum Member (Offline)
Joined: Nov 30 2008
Posts: 507
One question......

Does anyone know where they parked the semi in this video? I'm just curious, I'd never think of actually driving it home and parking it in my backyard until I could figure out a place to store the booty. devil

SS

Phil Williams's picture
Phil Williams
Status: Gold Member (Offline)
Joined: Oct 14 2009
Posts: 345
According to my math

Ounces in bullion form that could be purchased: 949,280,000 or .14 ounces per person on the planet

Ounces of silver that exist in any form: 2,480,000,000 or .36 ounces per person on the planet

Ounces of silver that have been mined including those lost: 4,510,000,000 or .66 ounces per person on the planet

Anybody know how many dollars are in existence?  

Grover's picture
Grover
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 879
Doesn't really matter

How much is too much? Latest figures from http://www.treasurydirect.gov/NP/BPDLogin?application=np

( Debt Held by the Public vs. Intragovernmental Holdings )

 

Current Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
02/28/2013 11,822,436,182,671.08 4,864,852,997,544.29 16,687,289,180,215.37

See information on the Debt Subject to the Limit.

Phil Williams wrote:

Anybody know how many dollars are in existence?

Phil, I don't think anybody knows. As long as the perceived value is there, it really doesn't matter. As soon as the perceived value isn't there, it really doesn't matter.

Food for thought - a $100 bill weighs approximately 1 gram. Therefore, a troy ounce of $100 bills would be worth $3100 (approx.) It would take approximately 167,000 tonnes of paper to print the Total Public Debt Outstanding in $100 bills.

Grover

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2391
Phil...

Based on your math, I seem to have accidently gone over my 0.66 ounce allotment of Silver.  Maybe our helpful Gov't will at some point come up with a plan to help me redistribute it more equitably?         

LesPhelps's picture
LesPhelps
Status: Platinum Member (Offline)
Joined: Apr 30 2009
Posts: 811
Just the tip of the iceburg

Forgive me for stating what most on this website already know.

Government debt is only a small portion of the government balance sheet problem.

Given current laws, the government has social security, welfare, medicare, medicade and VA liabilities.  The entire problem has been estimaed at around $100 Trillion.  So you need to multiply that visualization by about 7.  That's just the federal government.  To my knowledge, no one has done a number that includes state, county and city government debt.  Then consider pensions.  All of the government and private industry pension plans are largely invested in the stock market.  When it fails, as it must, the pension plans pop like an over inflated balloon.

Of course, congress can wipe out their liability with a pen.  Unfortunately, that will destroy the economy.  Plus, wiping out the debt doesn't make the demographic, energy and other issues magiclly go away.

On top of that, the US is in better shape, debt wise, than most of the free world and it's a global community now.

We are in deep do do. The thing that blows me away is that most people don't know it and absolutely don't want to know it.  It's sort of like having a freight train barrelling down on you and closing your eyes instead of jumping off the track.

Les

Phil Williams's picture
Phil Williams
Status: Gold Member (Offline)
Joined: Oct 14 2009
Posts: 345
Hoarder!

Jim,

I'm sure our Gov't will find a way to demonize all the "hoarders" of silver out there when it becomes common knowledge of the extreme scarcity and the necessary uitility. The sad thing is that I think the average American will support some sort of crackdown. It amazes me that a precious, scarce, consumed metal such as silver is being sold like it is an industrial metal that will last forever. I wonder if it will become illegal to own?

foggygoggles's picture
foggygoggles
Status: Member (Offline)
Joined: Sep 26 2011
Posts: 19
Windfall profit taxes on precious metals

Hi,

I am new to the board, so apologies if this issue has been previously covered.  Although I am investing in pm's to preserve wealth, I'm wondering whether in the end, desperate governments will simply tax away any benefits pm's might otherwise enjoy.  Thanks for your thoughts.  I'm feeling quite depressed these days.

westcoastjan's picture
westcoastjan
Status: Platinum Member (Offline)
Joined: Jun 4 2012
Posts: 575
welcome foggygoggles

Hi foggygoggles and welcome,

I am sure you are not alone in feeling depressed, but it is important to not let the things that we cannot control bog us down. An investment in some PM is a sound strategy, with how much you buy depending on your personal situation. If one diversifies their investments, then there is a better probability of riding out any changes in taxation rules that may occur. There is no way any of us can predict what TPTB are going to do down the road. Just hedge your bets by not putting all of your eggs in one basket. And do not overlook emotional resilience as being just as valuable as your PM. If you are a basket case who cannot cope, it will not matter how much PM you have...

There are lots of good articles on these boards about well balanced prepping, and by following some of that info, you may find more reasons for optimism. I have found in the ~ one year that I have been following this site my outlook has improved immeasurably not only because I have learned so much, but also because I acted on the new knowledge. This has put me in the drivers seat with the things that I can control in my own life. That brings peace of mind.

Good luck with your prepping.

Jan

Grover's picture
Grover
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 879
Guesses about guesses
LesPhelps wrote:

Forgive me for stating what most on this website already know.

Government debt is only a small portion of the government balance sheet problem.

Given current laws, the government has social security, welfare, medicare, medicade and VA liabilities.  The entire problem has been estimaed at around $100 Trillion.  So you need to multiply that visualization by about 7.  That's just the federal government.  To my knowledge, no one has done a number that includes state, county and city government debt.  Then consider pensions.  All of the government and private industry pension plans are largely invested in the stock market.  When it fails, as it must, the pension plans pop like an over inflated balloon.

Of course, congress can wipe out their liability with a pen.  Unfortunately, that will destroy the economy.  Plus, wiping out the debt doesn't make the demographic, energy and other issues magiclly go away.

On top of that, the US is in better shape, debt wise, than most of the free world and it's a global community now.

We are in deep do do. The thing that blows me away is that most people don't know it and absolutely don't want to know it.  It's sort of like having a freight train barrelling down on you and closing your eyes instead of jumping off the track.

Les

Les,

I agree that it is but the tip of the iceberg. (I find it amusing that it is reported to the penny.) We've got other problems under the surface that aren't as quantifiable. Shortages in SS and other government programs need assumptions to be evaluated. If interest rates rise or longevity increases/decreases or economic growth appears (as predicted) or any of a number of things occur, the problems will magnify or contract. Look at the derivatives problem with the big banks. How bad is that?

Paraphrasing Rogoff and Reinhart - at about 90% debt to GDP, a government's death spiral is likely. The US is currently over 100%, but part of that (Intragovernmental Holdings) are actually tax receipts that have been spent elsewhere. Is that really debt or simple misappropriated funds?

http://en.wikipedia.org/wiki/Economy_of_the_United_States

The economy of the United States is the world's largest national economy and the world's second largest overall economy, the GDP of the EU being approximately $2 trillion larger. Its nominal GDP was estimated to be $15.8 trillion in 2012 ,

Based on Widipedia's 2012 GDP estimate, we're near 75% of debt to GDP ... and rising at a clip over $1.1 trillion per year (about 7% per year.) Unless a miracle happens, we'll be over the magic 90% level in a few short years.

Does this really matter? Well, the art of making money in the market is correctly guessing what others guess the value of something will be in the future. I'm guessing that at some point, the average analyst will guess that the US cannot repay its debt. Until we hit the 90% level, they can easily ignore the problem. After that, the fireworks begin.

When are you guessing that our dire straits will actually register with the currently uninformed? What quantifiable number will be the trigger to a mass awakening? I'm betting this is it.

Grover

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2391
A note on Silver vs. Platinum and Palladium

There is a new Rick Rule interview making the rounds;

http://www.shtfplan.com/headline-news/you-want-to-own-things-the-enemy-c...

In which he suggests that Pt and Pd may be better investments than Silver and Gold over the next two years.  I want to point out that he uses a fallacious argument in doing so - he says that;

  I believe it because on the supply side there’s no above ground inventory. All the platinum and palladium that’s ever been mined has gone out a tail pipe, it’s gone up a smokestack or it’s gotten turned into jewelry.

Palladium and Platinum in catalytic converters are;

A.  Not consumed or otherwise lost out the tailpipe.. the very definition of the word, "catalyst" in chemical terms means that the catalyst, in this case Pt and Pd, are not consumed in the reaction.  

B.  Are eminently recyclable and actively recycled. 

I will stick with the monetary metals myself, thank you. 

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2391
Interesting morning in the metals...

Real (paper) Gold is disconnecting from Paper (paper) Gold;

PHYS  at + 0.42%,  GLD at - 0.03 %,  spot at - 0.13 %

Wild, wild rides in the miners... RVM, which I bought a bit of Friday.. flying (P/E 5.9)

Most others... diving further to incredible lows; IAG - 4.5%, etc.   There has to be a buyable bottom somewhere here... how low must the miner P/E's go?  IAG now at 7.2 with a yield of 3.8% 

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2391
On the GLD vs. PHYS divergence today

Could todays divergence be related to a growing realization of the difference between real Gold and paper Gold? One can hope...  

http://www.bullionbullscanada.com/gold-commentary/26069-paper-gold-isnt-...

Then we have the world of “bullion-ETF’s”; undisputed Kings of the paper-gold industry. Here there is no better place to start than with the first-and-largest of these funds; the SPDR Gold Trust – more commonly known by its market symbol “GLD”.

If one wants to understand how bankers can “sell paper gold” while not actually selling gold, they only need to read the GLD prospectus. This was previously dissected in an older commentary (The Seven Sins of GLD”), and a particularly significant technicality was noted.

In the event of “willful default” by the custodian of GLD bullion (primarily HSBC bank), the custodian has no obligation to deliver gold to unit-holders – even if unit-holders demand delivery of what (they undoubtedly believe) is “their gold”. What is a “willful default”? It’s where the custodian actually possesses abundant gold to satisfy “legal claims” against that gold, but simply chooses not to deliver that gold.

Who “owns” GLD gold? HSBC is in possession of the gold. HSBC has ultimate legal/proprietary authority over every ounce of that gold in its possession. When the same entity has both actual possession and ultimate legal/proprietary authority over that bullion, then that is the only entity which can rationally claim to “own” this bullion.

Obviously it is not necessarily true that a gold fund would not/does not convey actual ownership rights to holders in that specific fund (or account or trust). This is one of the reasons why all purchasers in any “financial product” need to scrupulously sift through the proverbial fine-print – and make sure they understand it.

 

foggygoggles's picture
foggygoggles
Status: Member (Offline)
Joined: Sep 26 2011
Posts: 19
Taxing Precious Metals Windfall Profits

Hi Jan,

Thanks for the welcome, and your reminder to focus on what I can control.  I've been preparing for a global financial collapse for the last couple of years, but continue to worry about what is happening to our pension funds.  My depression is not only about my individual situation, but also what's happening to our country.  It's looking like everything will have to be destroyed before sanity and common sense will emerge.

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