Economists Uncut

Gold Revaluation Means THIS For Silver Prices (Uncut) 02-25-2025

Gold Revaluation Means THIS For Silver Prices

Everyone is talking about a gold revaluation, how gold prices could skyrocket and what this means for a new monetary system. But no one is talking about what this means for silver. I’ve read your comments and I’m here to deliver.

 

Because if gold is being revalued, whether through a slow shift or a sudden reset, what does that mean for silver? Does it get left behind? Does it follow gold or could it explode even higher? So what would the real impact of a gold revaluation be on silver? And most importantly, how can you use this information to protect yourself? Let’s get into it. But before we dive into what would happen to silver during a gold revaluation, it’s important to understand the role that both gold and silver have played throughout time so that we can look at how they would respond today. But do not skip this foundational part, as it is crucial to the rest of what I’m going to talk about.

 

For thousands of years, gold and silver have been trusted stores of value, real money, although they have always served very different functions. In fact, up until the late 1800s, silver was most commonly used for daily purchases, whereas gold was reserved for savings or larger ticket items. But something big changed in the late 1800s.

 

Industrialization took off. More silver mines were discovered and the supply of silver exploded. But this was a problem for countries who recognized silver as money.

 

With the large discoveries of silver causing surpluses, silver’s value was driven down and any currency tied to it was destabilized, which is why many countries opted to move towards gold or the gold standard because it was scarcer and more consistent in value. In fact, the United States actually led this charge with the Coinage Act of 1873, which demonetized silver. This increased silver volatility in a way that we still see today.

 

In fact, about half of silver’s demand comes from industrial uses. But this dual use of industrial and monetary metal is what causes much of silver’s demand imbalances that we still see today. And I can already hear the comments, so before you say, no, no, no, that’s not the reason.

 

There is no demand imbalance. It’s because silver is suppressed. Listen, I hear you.

 

I’ve talked about this before. Both silver and gold, in my opinion, are extremely undervalued. I do not believe that the current spot price for either reflects their true fundamental monetary value.

 

But we’re not going down that rabbit hole today. We are focused on their functions. Now, since the dawn of time, going back to the Roman Empire, the gold to silver ratio is something like 12 to 1, meaning that gold has always been worth more than silver.

 

And this is because historically gold has been the foundation of monetary system. It’s what central banks hold, and it’s what is used in currency resets to reset the system. So in order to understand how silver would respond to a gold revaluation, we have to look at past monetary collapses.

 

There are many we can look at, but Weimar Germany is a perfect example, which is why I use it. Starting in 1918 to 1923, they experienced extreme inflation leading to hyperinflation and ultimately a currency collapse. The costs of goods and services rose so exponentially, so quickly that essentially in a five year period, you had to use a wheelbarrow of cash just for everyday purchases.

 

Now, in November of 1918, if we look at one loaf of bread, one loaf of bread was roughly one German mark, the fiat currency, or you could buy one loaf of bread for about one fifth of an ounce of silver, or one one hundredth of an ounce of gold. By November 1923, just five years later, that one loaf of bread cost over 200 billion German marks. Imagine going to the grocery store and buying a candy bar today, and in five years that candy bar is 200 billion dollars.

 

That’s the equivalent of what we’re looking at. Now, during that same time, silver rose in value. In 1918, it was worth about five German marks, and five years later in 1923, it was worth over half a trillion German marks.

 

But when you consider inflation in 1918, that one ounce of silver could buy you roughly five loaves. Five years later in 1923, that one ounce of silver could buy you roughly five loaves. See, one ounce of gold in 1918 could buy you roughly 100 loaves of bread.

 

But five years later, that one ounce of gold was worth 87 trillion German marks, or could buy you roughly 435 loaves of bread. So while, yes, silver was absolutely essential to own for everyday purchases, imagine those who held their wealth in gold. They were set up for tremendous opportunity on the other side.

 

But that’s just one example. This has been repeated through history time and time again. Now, we know that if central banks or the United States government is seriously considering revaluing gold, then the system is already in deep trouble.

 

It means governments are scrambling to try to restore confidence in the current monetary system, or, more likely, they are trying to get ahead of an inevitable currency reset that is already underway. But that would all but guarantee an acceleration of the fiat currency collapse. And when that happens, yes, when governments revalue gold, absolutely, then we know for a fact gold is going up.

 

But gold and silver in the free markets, of course, demand is going to skyrocket, and the price is going to go up significantly against the failing fiat currency, which will be worth next to nothing. So if I had to speculate, yes, absolutely, both gold and silver are going up, but that’s not really the point. Because these aren’t speculative assets, and this is where a lot of people get lost.

 

We don’t buy gold and silver just to turn around and sell them the next day. Gold and silver are your insurance policy against what is coming next. You hope that you never need to use it, but if you do, you’re going to want to make sure that you have it in place.

 

Because if and when the system collapses, you will be glad that you have both to protect yourself, which is why we do believe in owning both. Because silver is going to be used for your daily purchases, whereas gold is going to be the true store of value to protect your wealth. History doesn’t repeat, but it rhymes.

 

And at the end of the day, when the dust settles, it will be gold that is not only revalued at a higher price, but demand will push it to a much higher price, which is why I always ask everyone, what are you preparing for? What keeps you up at night? Is it government overprinting and the erosion of the value of the fiat currency? Is it this currency reset, the currency collapse? Because depending on what you’re preparing for is going to determine the steps and the action that you need to take now. You would not train the same way for a marathon that you would in Olympic weightlifting competition. The paths are going to be different.

 

So while we believe in owning both, there’s still a lot of nuance to understand in terms of how you prepare, how you position yourself for this reset, which is why we have created an incredible free resource, the ITM Gold and Silver Guide, which I highly recommend that you download your copy today. You can do it by scanning the QR code or clicking the link in the description below. But as I always say, while that is a terrific first step, it is the action that will truly protect you against what’s coming next.

 

Talk to one of our expert analysts who understand these historical patterns, live and breathe currency resets, and most importantly, specialize in helping people just like you protect themselves. Again, all you have to do is call us at the number below or click the link in the description or scan the QR code to set up a call at a time that works best for you. And as always, thank you so much for being here.

 

I’m Taylor Kenney with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.

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