hi this is Mike Maloney and I'm going to be covering an article here that Jeff Clark closed the year out with last year and it's a bunch of ratio charts and I know a lot of people don't like ratio charts uh but they are showing you very clearly the difference between price and value and this is something I dedicated a few chapters in my first book guide to investing in gold and silver on the difference between price and value and how much you could get in the future if things revert back to their
means or overshoot and the something that's in a bubble today becomes extremely undervalued well what is undervalued today goes into a bubble and you know we've we've seen this throughout history there's no reason to expect that things are going to suddenly change and so I do expect a lot of these things to come through but it's very interesting going through this article and looking at the difference between price and value and the first thing we come across here is a new car priced in
silver and we have um currently 2225.4 ounces of silver to buy an average new car where it only took 333 ounces in 1980. now uh I look at this and I immediately see that this is annual data points and the problem with this is if you're using the annual price of silver for 1980 that's 32 bucks but on the Chicago Mercantile Exchange or the Chicago Board of Trade It hit 52.50 and so uh when I do that I poked around I couldn't find this data at macro Trends but I did find a website that had
20 new cars made in 1980 and here's a Buick Regal with it which is a little bit above average at 8 300 bucks Cadillac Eldorado most expensive at 18 000. uh Pontiac Trans Am just under 10 000. uh cheapest car oh here's a Mustang uh 5400 cheapest car uh Pino at 3 900 but it looks like on the average you're at about 7 500 8 000 I mean here's a Ford Crown Victoria at uh 8600 uh but about 7 500 8 000 and so getting back to Jeff's article if you take that price Peak uh that puts this down to around
150 ounces of silver meaning that uh in the future you will get if if you're invested in silver you will get about 15 times more car for your ounces of silver in other words uh cars someday in the future if this silver uh new car ratio goes back to the balance that it was in 1980. cars will be selling at somewhere greater than a 90 discount you'll be getting uh if it goes back to 150 you'll be getting 93 off of that sticker price of the car for the currency that you invest today in silver and here he's got silver Power
Boat ratio uh wine priced in silver and here's one that I like the beer priced in silver ratio but there's nights at a resort airfare and beachfront real estate beachfront condo this is based on West Palm Beach and Boca Raton Florida and this comes from the Federal Reserve and the lbma and this looks like it may be quarterly data generally on all of these uh prices you know this shows that you're going to get 17 times more real estate for each dollar invested today in silver someday
these ratios will change real estate is just coming off of the most massive bubbles in history and gold and silver are coming off of the most undervalued that they had ever been back in the year 2000 2001. and so this reversion is showing that you'll get roughly 17 times more real estate per dollar than you do today and that's about a 94 discount from where it is today so he's betting on gold and silver and so am I moving on with this video I wanted to show you something from Wall Street Silver inflation
hitting hard these days we are at the stage of the process where menu price labels are just stickers over the previous prices and instead of playing this I'm going to enlarge it and here you have 36.99 and 69.99 is the last two prices on this list now this Zooms in a little but you can see uh 28.99 and 55.99 so from 55.99 to 69.99 and from 28.99 to 36.99 uh so we are at this stage where staying invested in fiat currency or items that are in hyper Bubbles and priced in fiat currency it's
time to get out of the fiat currency or that asset that is currently falling in price now as inflation goes up uh these things that are falling in price it's a lot worse than it uh than it looks once you adjust it for inflation and so as people as inflation hits people will be running more and more toward a store of value that always ends up making up for dilution of a fiat currency Supply and so to close this out guys watch out for the waterfall blank and conspiracy theorist where's your tinfoil hat
if there was a waterfall we'd hear about it on TV dumbass so I know a lot of people that are this guy and this guy over here I believe this includes me and there's a lot of people that call me a conspiracy theorist I don't believe I am I believe I'm just reporting the facts thank you very much for watching we'll see you next time
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