Today James Turk shared a very unique look at the silver market.
July 3 (King World News) – James Turk: Here is an analysis of silver, Eric, that I think will be of interest to King World News readers. It’s a comparison of the value of silver and bitcoin.
Some will see this as an apples-vs-oranges comparison of limited use. After all, value arises from an item’s usefulness, and these two similar items have essentially the same value – the benefits from eating fruit, or in this case, two different near-moneys in which to store some of your purchasing power. But there is more to it…
This silver explorer recently did a huge transaction with a $4.5 billion market cap producer CLICK HERE OR ON THE IMAGE BELOW TO LEARN MORE.
The comparison of bitcoin to silver that I am making is different. It’s an analysis of their relative value to determine which is the better buy. Or to put it another way, which of these two different near-moneys would you rather own? Looking ahead, which will provide the better performance by increasing your purchasing power?
I will answer these questions in two different ways, starting first with this 1-year chart looking at how many ounces of silver equal one bitcoin.
There are a couple of key points to be made from this chart showing that currently 1981oz of silver equal one bitcoin. Note that bitcoin’s rally peaked in mid-March, with 3000oz of silver equal to one bitcoin. Then the trend changed.
There has been a clear downtrend over the last few months. I’ve included a 55-day moving average to show the change in trend, which now favours silver. Silver is outperforming because a fewer number of ounces are needed to equal one bitcoin.
When measured in silver ounces, bitcoin last month made a new low at 2000oz, which was followed by a small bounce. That same 2000oz level is again being tested, and given the larger downtrend, looks ready to break lower. If so, silver would continue to outperform bitcoin.
The second factor that needs to be considered – and probably the more important of the two – is their market cap.
The current market cap for bitcoin is $1.2 trillion. That 32-times greater than silver’s $37 billion market cap. It’s calculated by multiplying the 1,229.9 Moz of identifiable silver bullion inventories reported in “World Silver Survey 2024” by $30/oz.
That is a staggering difference in their market caps. In theory therefore, an equal amount of new money spent on each asset would have a greater impact on silver, meaning its price would rise further.
I’ve been a bitcoin advocate for some time, and have long held the belief that $100,000 per coin is a reasonable target, which would roughly be a 67% gain from its current price. Maybe it could even double to a $2.4 trillion market cap.
Now, I’ve compared the size of bitcoin’s market cap and its upside potential to a double in silver’s market cap to $74 billion, and asked myself, which is more likely to happen.
Clearly, the odds favour silver, and I won’t be surprised if some bitcoin hodlers decide to switch horses.
West Is Manipulating Gold Like Crazy
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Just Released!
To listen to James Turk discuss why the coming global collapse will be far worse than 2008 and much more CLICK HERE OR ON THE IMAGE BELOW.
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