PM demand is far from a bubble

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PM demand is far from a bubble

Postby shinnosuke » Wed Jun 20, 2012 5:28 pm

Just sharing; didn't check the math. From Ed Steer's newsletter:

"Here are a couple of interesting tables of numbers courtesy of reader E.F. The first table is for GOLD...and this is how he describes the chart..."In 1980 investor gold holdings represented 2.75% of total world financial assets (WFA). A gold price of $5,142 per ounce makes current investor gold holdings equal 2.75% of world financial assets."
Gold Holdings.jpg
Gold Holdings.jpg (48.22 KiB) Viewed 314 times


For SILVER, reader E.F. states that...'In 1980 investor silver holdings represented .3468% of total world financial assets. A silver price of $886.29 per ounce makes current investor silver holdings equal 0.3468% of world financial assets.'"
Silver Holdings.jpg
Silver Holdings.jpg (51.79 KiB) Viewed 314 times


[end quote]

Another way for gold/silver holdings as a percentage of total world assets to increase would be for more people to own them. As doomed as we know paper assets are, isn't it surprising that more people don't diversify into PMs? Shall we call it the DWTS effect? The NFL/MLB/NBA/NHL gladiator effect?

1980 is the obvious choice for comparison because that's when the Fed jiggled with interest rates to the upside causing gold and silver to skyrocket.
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Re: PM demand is far from a bubble

Postby madman326 » Wed Jun 20, 2012 9:21 pm

i am going to need those values to be true for retirement/SHTF!!!!!
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Re: PM demand is far from a bubble

Postby beauanderos » Wed Jun 20, 2012 9:25 pm

Unfortunately, there is more than one fashion in which to reach those percentages... and that is for an immense evaporation of paper profits from sources aside from precious metals... which very well could occur (just finished reading Aftershock)
Of course, that would represent a 95% contraction in worldwide asset values, and I don't imagine things will get quite that bad... so maybe 50/50 and we get half the estimated PM values. Still better off holding real money
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Re: PM demand is far from a bubble

Postby shinnosuke » Wed Jun 20, 2012 9:29 pm

beauanderos wrote:Unfortunately, there is more than one fashion in which to reach those percentages... and that is for an immense evaporation of paper profits from sources aside from precious metals... which very well could occur (just finished reading Aftershock)
Of course, that would represent a 95% contraction in worldwide asset values, and I don't imagine things will get quite that bad... so maybe 50/50 and we get half the estimated PM values. Still better off holding real money


Interested in their analysis. Besides PMs do they recommend a particular asset class?
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Re: PM demand is far from a bubble

Postby beauanderos » Wed Jun 20, 2012 9:40 pm

shinnosuke wrote:
beauanderos wrote:Unfortunately, there is more than one fashion in which to reach those percentages... and that is for an immense evaporation of paper profits from sources aside from precious metals... which very well could occur (just finished reading Aftershock)
Of course, that would represent a 95% contraction in worldwide asset values, and I don't imagine things will get quite that bad... so maybe 50/50 and we get half the estimated PM values. Still better off holding real money


Interested in their analysis. Besides PMs do they recommend a particular asset class?

They recommend gold as the best asset class for the next six to ten years. They aren't gloom and doomer gold bugs by any means, just feel (for a number of reasons they enumerate in their book) that gold will be the strongest asset class for the majority of the coming decade. An interesting book, if you can ignore their incessant plugs for their website.
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Re: PM demand is far from a bubble

Postby beauanderos » Wed Jun 20, 2012 9:43 pm

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Re: PM demand is far from a bubble

Postby SoFa » Wed Jun 20, 2012 10:54 pm

Why 1980?
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Re: PM demand is far from a bubble

Postby snappy » Fri Jun 22, 2012 8:52 pm

1980 prices were thanks to the hunt brothers 1990's would be better to go by.
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