Good morning, welcome to another Money Today. I guess it’s probably traffic time as usual, I guess I tend to make videos about this time. The sun is nice, it feels good out, but I’m sure there are lots of cars, I’ll try and find a spot that’s not too bad. So, what we’re talking about today is still talking about silver. I made a couple videos, the first one, it was mostly about just how many derivatives there are, which was unfathomable by pretty much anybody. It’s a number so high that we really can’t even begin to get it, at least I can’t.
But whether that number is even close to accurate, how would I even know? How does anybody know? Even the article itself didn’t really know. But, that’s not where I’m getting at with this article today. What I’m getting at is that it starts out with silver and it starts out with this tiny little dot, about how much silver there is. And I was watching another video that was explaining about that same article, about that maybe that’s inaccurate.
So, I don’t know what else in the article might be not accurate, as well. I wanted to dive a little bit more into that, since we’re talking about silver, that particular thing, like how much silver, do we have at least a good estimate of what’s above ground? Because if we start talking about the value of silver, we should probably kind of know its rarity. From another article or another video that I did, it also said that there was about as much gold above ground as silver.
If you take that into account, you probably feel like there is not a whole lot of silver. Because when you talk about gold, you feel oh, this is very precious. Not only that, that silver is used in so many things, it’s actually used up, or at least used in so many more things than gold is. So, I’m going to show you this video about how much silver there may actually be, and where they might have went wrong on this article.
I think most of us at one time or another read information from various different sources, and because we ourselves are personally invested, no pun intended, in a particular subject or ideology, many times we tend to just take it for face value or take it for what it’s worth. And I know I, myself, have fallen victim to that many times, but I do try to be intellectually honest when I can, but there is a great temptation many times for us to take what information is provided from what we think is a trusted source, or even if it is from a trusted source, and just accept it as true.
And the thing is, is it makes it difficult, because a lot of information that we find has some truth behind it. And so, really, what’s been said has just been kind of twisted around in such a way where it’s sort of a half truth or there is a big “however” in there, instead of a “but.” But, nonetheless, there are cases where it’s just a flat out lie, and I think this is where we see it in this particular visualization here, in the case that was sent to me by someone who I certainly appreciate them sending this to me, but it reminds me of the Chris Duane graphic that he puts up on almost every video that shows the inverted pyramid, and silver is at the bottom.
This, the derivative markets, this is kind of the big bear, I guess you would say. The low end estimate of the size and scope of global derivative markets is $544 trillion on a national contract basis, which is a contract between two or more parties that derive value from the performance of an underlying asset, index, or entity. Examples would be futures, forward contracts, we’ve seen with ETF with silver and gold ETFs, as well, options, warrants, swaps. The Silver Institute, which is the check, you notice they didn’t quote The Silver Institute, they just said the value of above ground silver stocks estimated by some at 1 billion ounces, is “estimated by some.” They could have very easily gone to the interweb and checked out, well, The Silver Institute, and checked out what they had to say about it.
Well, The Silver Institute says in 2016 alone, total worldwide demand for silver totaled 1027.8 million ounces, that’s a billion just in the demand, and the thing is that’s only in demand. There is much more supply than demand out there, there is a lot of silver that’s there, and no one knows exactly how much of any of these metals are out there in above ground stocks. But here is the output, the bottom line here. There is a lot more silver than there is gold. So, this is an outright lie here, and it’s a shame that it’s being perpetuated on Chris Duane’s TruthNeverTold channel, as well, on how small, how this is the tip of the pyramid, so to speak. And here’s the ironic thing about it; the truth should always be told. In my view, you don’t need to muck and work and manipulate the numbers to realize that silver and gold are money, and they’re valuable.
I just wanted to add a real quick note to the video. I don’t necessarily believe that it was something nefarious or that they’re purposely leaving out the amount of silver. They might have, but regardless, I think it’s just important for us to get an idea of what’s accurate, regardless of whether it was purposeful or not. So, I just wanted to say that. I appreciate everybody, thanks for tuning in again, and we’ll get deeper into this especially the amount of silver above ground, in the next episode. Thanks.