The Money Charts - 2008
(With Real Charts)
Silver Stock Report
by Jason Hommel, August 8th, 2008
I'm pleased to announce the birth of our
new baby boy Jude, who was born on July 16th. I've been
busy bonding with baby. For my first article in nearly a month, I
decided to focus once again on the fundamentals, and update my "money
If you can read Chinese, you can find the translation at http://www.silverstockreport.com/2008/fundamentals-zh.html
The best way to evaluate the fundamentals of silver is to look at the annual flows and totals of silver as compared to the annual flows and totals of other forms of money, such as gold, and paper money.
The last time I did this was in my "Money Chart" of Feb. 2006.
This time, I will put some of this information into real charts, as a way to help understand the relative size of the numbers, as some people get confused by the terms trillion, billion, million, and also by the numbers of zeroes.
These basic fundamentals will be in place for years, and will explain why silver prices will move up for the next few decades.
Estimated World GDP: $54 trillion, $54,000,000,000,000
Estimated Size of the world stock market: $51 trillion,
Estimated Size of the world bond market: $45 trillion,
U.S. GDP (Gross Domestic Product): $13.8 trillion,
U.S. Total Public Debt: $9.57 trillion: $9,571,432,990,910
China GDP $7 trillion, $7,000,000,000,000
Estimated Total Gold Mined and Produced in the History of the World:
155,000 tonnes, at 32,151 oz/tonne at $855/oz.: $4.2 trillion,
Estimated World Oil Production 2005 est: 78.9 million barrels/day at
$115/barrel at 365 days/year: $3.3 trillion, $3,300,000,000,000
U.S. Proposed Annual Budget for 2008: $3.1 trillion,
Estimated Total Silver Mined and Produced in the History of the World:
43 billion ounces, at $15.27/oz.: $656 billion, $656,610,000,000
U.S. Official Treasury-Owned gold: 261,498,899 ounces at $855/oz.: $223
Estimated Annual World Gold Demand for 2007: 3516 tonnes at 32,151
oz/tonne, at $855/oz.: $96 billion, $96,651,693,180
Estimated Annual World Silver Mine Production for 2007: 670.6
million ounces, at $15.27/oz.: $10 billion, $10,240,062,000
Estimated Total Silver in Known Depositories, ETFs, Funds, Exchanges:
430 million ounces, at $15.27/oz.: $6 billion, $6,566,100,000
Estimated Annual World Net Silver Investment Demand for 2006: 60
million ounces, at $15.27/oz.: $916 million, $916,200,000
Estimated Annual World Net Silver Investment Demand for 2007: 25.8
million ounces, at $15.27/oz.: $393 million, $393,966,000
=============I put the information above into the charts below, so you can see the relative size of each monetary item. Note, I had to break the information down into two charts to continue to see the relative size. The last item in the first chart, and the first item in the second chart, are the same thing, which is the total value of all the silver mined in all of human history, valued at today's silver prices, which you can see, is regarded as nothing in the realm of world finance.
All of this shows that the recent dip in silver
prices is nothing to worry about, and is merely a normal fluctuation in
the grand scheme of things, the grand return and re-emergence of silver as
money, which is a process that may take many years to play out.