Gold, Silver, Wealth Preservation, and the Wizard of Oz

In this video, I discuss how silver has underperformed gold in a wide variety of currencies, including the Japanese yen, the Indian rupee, and the US dollar. This is to be expected since gold has a higher "stock to flow" ratio than silver, and thus functions as a better store of value. In the coming years, Bitcoin's stock to flow will exceed gold's stock to flow, which suggests that Bitcoin may outperform gold, in the same way that gold has outperformed silver.

Stock to flow is simply the existing inventories of a metal (or asset) divided by annual production. It is a good estimate of how many years it might take to replace existing inventories using existing rates of mining. The higher an asset's stock to flow is, the higher its total market cap should be as well. Stock to flow is an excellent proxy for measuring "scarcity." Assets with high stock to flow ratios should serve as excellent stores of value over time.

I finish my lecture by discussing the theory that "The Wizard of Oz" is an allegory about bimetallism in America.

Not investment advice! Consult a financial adviser.

Be sure to watch this video first:
https://www.youtube.com/watch?v=w5ffEORwWkk

Gold vs silver (which is better?):
https://www.youtube.com/watch?v=-QhNDk9U-i8

Gold chart in Yen:
https://goldprice.org/gold-price-charts/20-year-gold-price-history-in-japanese-yen-per-ounce

Silver chart in Yen:
https://silverprice.org/silver-price-charts/20-year-silver-price-history-in-japanese-yen-per-ounce

Gold chart in Indian Rupees:
https://goldprice.org/gold-price-charts/20-year-gold-price-history-in-indian-rupees-per-ounce

Silver chart in Indian Rupees:
https://silverprice.org/silver-price-charts/20-year-silver-price-history-in-indian-rupees-per-ounce

Gold chart in USD:
https://goldprice.org/gold-price-charts/20-year-gold-price-history-in-us-dollars-per-ounce

Silver chart in USD:
https://silverprice.org/silver-price-charts/20-year-silver-price-history-in-us-dollars-per-ounce

Stock to flow ratios for gold, silver, and Bitcoin:
https://medium.com/@100trillionUSD/bitcoin-stock-to-flow-cross-asset-model-50d260feed12

My favorite Bitcoin dashboard:
https://bitcoin.clarkmoody.com/dashboard/

Bitcoin stock to flow chart:
https://digitalik.net/btc/

History of bimetallism in the US:
https://en.wikipedia.org/wiki/Bimetallism#United_States

Gold to silver ratio charts:
https://www.kitco.com/commentaries/2016-04-28/Gold-Silver-and-the-US-Dollar-1792-1971.html#:~:text=The%20Au%3AAg%20chart%20warrants,the%20blips%20in%20those%20years.

https://www.macrotrends.net/1441/gold-to-silver-ratio

Famous "Cross of Gold" speech:
https://en.wikipedia.org/wiki/Cross_of_Gold_speech

Matthew Kratter is the author of the Amazon best-seller "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5

If you like my teaching style and would like to learn more about investing and trading stocks, options, and futures, be sure to check out my online courses here:
https://www.trader.university/join

Use this secret coupon code to get a discount: YT99

#Gold
#Silver
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