The reality of owning gold and silver is that we are all holding something where the value and price is determined by someone else. The GSR is what it is, accept it, and pick your side, and see what happens.
There are two questions you need to ask yourself.
(1) Silver coins were minted in numerous ancient civilizations including Egypt, Greece, Rome, etc, ... disregarding their historical value, what are those coins worth today ?
(2) Thousands of paper currencies have been printed since ancient times ... disregarding their historical value, what are those paper currencies worth today ?
Nothing else really needs to be said.
yes i accept your definition of money and also Maloney's. BTW Isn't he one of those youtube "silver going to da moon" pundits?
what do you mean by currency markets? Trading platforms, exchanges, currency traders at their desks?
Anyway, enough of me trying to wind up you silver fans.
The question you need to ask yourself is; does the world need silver as a store of value/money?
Thousands of years ago (and hundreds) it was pretty simple. They needed money, a form of exchange and store of value, and gold and silver fitted the bill pretty well.
Precious metals were difficult to get hold of, nice and shiny, fairly inert etc. Their relative value was easy to determine as well; simply their relative scarcity and that gave us the much quoted GSR of 16 or so.
They weren’t used for anything else other than jewellery and fancy flatware/ornaments, but that was just an extension of their PM status.
While ever they were simply circulating money, life was simple, everyone knew where they stood.
Fast forward to today.
Neither metal is used as currency but gold is still regarded as the ultimate store of value. It is the rarest, most inert and it’s a distinctive, pretty colour. Its status is so ingrained in everyone’s psyche it’s difficult to see that changing anytime soon.
However, what about silver?
It’s not needed as currency. It’s still regarded as “money”, but for how long?
It’s not really needed as a store of value, gold does that pretty well on its own.
The general population couldn’t care less about it; in fact 99.99% don’t have a clue what its value is.
How can something be useful as money if very few people actually regard it as such and know its value?
It’s clear to me that its status as a store of value is on the decline. To continue to be it needs everyone to accept it as such. There’s no point having loads of it if very few people want to buy it off you when you want to sell.
It is mainly produced as a bi product of other metal mining so there will always be enough to satisfy industrial demand. If not, the price will go up and if it rises too much, they will try to find alternatives.