What is the Value of Silver?

[sixgun]

1 hour ago, swanky said:

 Forgot about this thread, need to follow-up because this point is critical:

You just repeated yourself. And made maths worse, did you mean divide? I will assume that.

I will try another way - the maths is fundamentally broken, it's not a matter of dislike. Let's analyse the left-hand side: 24g ÷ $0.04 = ?  That means the right value must have the unit of g/$ - grams-per-$ - but you just put $ which is wrong.

To get a $ value on right side, and starting with 24g on the left, then the divisor has to have unit g/$ - grams-per-$. Then maths works out - g ÷ g/$ = $.

The old dollar = 24g of silver
New dollar = 0.04 of old dollar = 0.04 x 24g silver = 0.96g silver

On this value basis 1 oz of silver (31.1g) is worth 31.1 / 0.96 = $32.40 new dollars.

[Junior]

@swanky LOL you caught me! I did mess up 24 x 0.04. I did mean to divide and not multiply. But in the original article I posted, the math is correct. It is the division sign. I was careless in my reply by using the multiplication sign by mistake. 

[SidS]

8 hours ago, Minimalist said:

It isnt about values though is it? Reality is that if you dont have metals in your hand/possession then you simply dont own it. A "claim" on paper doesnt mean you own it because it requires a process of metaphysics - the physical delivery of the metal into your hands.

No argument from me there. I totally agree with you.

This is what I meant by approaching the world with different values, like you I hold the metal to have intrinsic value in and of itself and that to have that metal in hand to be ownership of it.

I surmise that @HawkHybrid has the view that it's not the item's value in and of itself, but its potential for growth that is important, if utilised correctly. So for example not the value of a metal itself, but more its application/uses.

 

[Minimalist]

4 minutes ago, SidS said:

So for example not the value of a metal itself, but more its application/uses.

I dont understand: To apply it as a component for applications or utilities gives value to the metal itself. Thats how the universe works - even the science of Gold for example gives value of it self.

To be honest, HH is doing anything out of desperation to apply the Bankers outlook into metals.

[SidS]

I was thinking less of silver but more of something like iron, not particularly rare or valuable as a mined commodity, but when turned into steel or fashioned into some kind of stainless steel specialist equipment, like space/aeronautics/medical can become much more valuable, even though intrinsically of little value.

Sorry, I should have made that clearer.

Edited October 18, 2021 by SidS
Spellings

[LawrenceChard]

12 hours ago, Junior said:

@LawrenceChard To answer a few questions, yes, I am Jordan Graveline. My nickname has always been Junior. So I went with that as my screen name.

I have no doctrine in the study of money or economics, but I am an enthusiast constantly looking for answers.

Perhaps my writing style raises more questions for any readers, but critics are always welcome. Simply helps me become a better writer and helps me get my thoughts out more clearly.

I was using the US dollar which I was not clear on until a bit further down in the article. But for readers not in the US or Canada, can you insert your own country’s currency and arrive at the same article asking the same questions? Has not every currency fallen in respect to silver, gold, oil, bread, steak, fish, or anything else?

Maybe the currency doesn’t matter. It’s the commodity I’m certainly interested in and I take pleasure in gathering opinions that can help me further my understanding.

Thank you all for a bit of everything. History, charts, personal opinions, professional opinions, videos, etc…. Everything helps me form and further my thoughts.

Thanks for the response, and I'm glad you took that so positively.

I hope you go far. (Don't take that the wrong way!) 😎

[ArgentSmith]

In response to the OP. Silver is valued at £16.92, there's a banner at the top of this page with current spot prices 😃

[Rll1288]

13 hours ago, LawrenceChard said:

I was thinking of contributing to this thread.

I noticed a number of comments which sounded like their authors were confused or unclear, but there were so many, and it would have taken so much time, that I switched off, and thought it better to save my time and effort for something important and constructive.

However I then realised that much of the confusion is caused by the very first post in the topic thread. So I started to analyse the first post, one statement, sentence or line at a time. I didn't get far:

"What is the Value of Silver?"

In terms of what? monetary value in USD, usefulness as an industrial metal, in medicine? The question itself as posed is meaningless, at least without making a few guesses or presumptions.

"By: Jordan Graveline"

WTF is Jordan Graveline? Is he @Junior, or somebody else. Which Jordan Graveline?, what are his qualifications? When and where did Jordan Graveline publish this article? Give us a few clues!. Don't treat your audience with such contempt!

"What is the value of silver? To answer this question, we must first ask ourselves: What is the value of a dollar?"

Why?

What has the dollar got to do with it?

Are you examining the value of silver in terms of "the dollar"? If so, why did you not state this at the start?

Also, which dollar are you talking about. You are based in Canada, so are you talking about the Canadian Dollar, the US Dollar, the Zimbabwean Dollar, or one of the other few dozen dollars? Your readers shoud not have to guess or presums which dollar you are talking about!

Do you even know which dollar you or Jordan Graveline is talking about? Does he know? Are you sure? JHow? Did you understand his article? Did you analyse it? did you question any of it? I can think of many more questions on this point, but let's move on...

"This question has plagued the modern investor, tax payer, and overall general consumer for many years."

Has it really? Are you sure? What evidence is there for any of the three assertions you or the original author makes.

It hasn't plagued me.

Has it plagued anybody else reading this?

Why parrot and quote a sweeping assertion with no evidence?

"I will attempt to show what I believe the value of silver is by using the declining purchasing power of the US dollar."

Purchasing power is respect of what? Silver? Wages? Corn? 

Why not gold?

At this point I was in danger of losing the will to live.

There is absolutely no point me wasting my time reading such a pile of garbage in a vain attempt to try to understand it, when I suspect its original author, and the OP, do not understand it. If any other TSF member understands it, or thinks they do, you can always let me know, although I might not believe you.

I think I will go and read about Fermat's Last Theorem. It may be a challenging read, but at least it will be stated in clear terms without any sweeping assertions, and without requiring any guesswork or assumption by the reader.

Sorry if any of this sounds harsh or overcritical, especially as you are a newbie, and say you are young (or was that Jordan Graveline?).

My questions are constructive. If you work your way through them, find the answers, understand why I asked, then you will have gained a great deal of wisdom.

... No charge!...

😎

 

Ouch 🙂 .. just read this hahaha... I personally didn't take offence at the initial post by "Junior" as I thought it was an interesting thing to look but probably disagree on its values in isolation to many other dimensions i.e. inflation, interest rates, technological advancements (yes these have in my mind had a bearing on PMs and finance.. bitcoin). To me when someone mentions the dollar I immediately think of USD... maybe because I was brought up in finance to view this as the "world CCY" ... 🙂

I think the one thing that has plagued me within finance over the last few years is not just precious metals but the whole debacle that is world economics. I know there is more in to it than just silver but the statement was on the "dollar" value versus just silver and from my debating days, it's about working that hypothesis and seeing if it has legs. I believe we need to look at the whole commodities market as a whole and the purchasing power of (in this case) the USD over the years. 

Its amazing how statements can arouse emotions... hahaha

BTW I have a get rich quick scheme... Find a commodity/product that's has a shelf life and is being replaced by another, newer one. Get the news to state there is a shortage due to transport issues and create a frenzy of demand... hike the prices up 30% and boom, bang... you are rich......... Ah wait... BP just did that

[Rll1288]

54 minutes ago, ArgentSmith said:

In response to the OP. Silver is valued at £16.92, there's a banner at the top of this page with current spot prices 😃

Pardon the pun..... "Spot On". hahahaha

Edited October 18, 2021 by Rll1288

[swanky]

14 hours ago, Junior said:

the math is correct

No because the units are wrong. Read my last post in full, which was mostly about units. This guide should help (jump down to 'Multiplication and Division') - http://www.gmatfree.com/module-999/math-with-units

 

14 hours ago, sixgun said:

New dollar = 0.04 of old dollar = 0.04 x 24g silver = 0.96g silver

This works, thought it might help to show why with the units: g/$-old x $-old/$-new = g/$-new

Edited October 18, 2021 by swanky

[Minimalist]

On 16/10/2021 at 18:11, HerefordBullyun said:

As I write this now https://usdebtclock.org/index.html

 

Thats how much suppression is on metals. Its truly incredible.