The US monetary base is the total amount of US dollars issued by the Federal Reserve. The monetary base was supposed to be backed by gold—you could, technically, use your dollars to redeem gold from the Treasury or the Federal Reserve. This is not the case anymore, and the amount of dollars has grown exponentially.
In 1980, one ounce of silver cost $50, and the monetary base was around 132 billion dollars. Today, one ounce is around $18.30, and the monetary base is over 3,000 billion dollars.
Below, you can see the silver price relative to the US monetary base (in billions of dollars) over the past century.
This chart shows us that the current price of silver compared to the amount of US dollars in existence is at a 100-year low.
If you believe in buying low and selling high, buying silver is literally the opportunity of a lifetime. We are seeing now how silver has started its move up—and it is aggressive: the precious metal shot up 26% in the last three months.
At Gold Alliance, we don’t just preach it. Our company is actively buying silver at this time, and we will continue doing so as long as this rationale persists. We will refer you back to this article a few years down the road when we detail the success of this strategy.
Would you like to get more information about protecting and growing your wealth? Then, I will gladly discuss it with you—with no obligations—if you have a few minutes to do so.
Schedule an appointment with me here.
About Fred Abadi
In his over 14 years in the financial industry, Fred has focused on commodities and precious metals as investment assets. He has penned several articles on topics such as the commodities markets and investing in precious metals for retirement accounts. Fred has helped thousands of clients safeguard their investments with gold and other precious metals. He has been with Gold Alliance for over two years as a leading Sr. Portfolio Manager.