The new era points to a Gold-Silver cycle where instead of money, hard assets will be used to trade or sign-up contracts with the parties. Since 2008, the money supply has seen a dramatic increase while causing the interest rates to stoop even lower. With this money, the Quantitative Easing or QE surged, resulting in bulk money, increased stock markets, property values as well as consumer lending. This, however, did not apply to the metals worth a heavy price.
Where cheap money managed to make such a huge impact on the money market, it also affected the global debt, including Financial Corporates, Government, Non-financial Corporates, and Households, and increased their numbers threefold. With increasing cheap money, it was easy to predict that the new era would see limited products for a fat price. Not only this, major currencies like U.S. DOLLAR, Euro, Yen, ECU, Pound Sterling, and others have observed a staggering depreciation in their worth because of the increased money supply.
The future looks a lot like gold contracts and silver trading as most traders, including commercial, non-commercial, and retail, have found new ways to formulate paper contracts. Because of hard assets, in the year 2016, commercial traders were seen surpassing the spectators (Non-commercial and Retail Traders) for the very first time. In 2019, the same results were observed pointing to a golden future, literally.
There has been a frequent change when it comes to the gold-to-silver ratio. This ratio refers to the amount of silver required to buy one ounce of gold. The charts show that the proportion of Silver has always been greater than that of Gold, and considering the changing era, it will continue to grow in the future as well. The following infographic outlines a demographic structure relating to the Silver Gold cycle and its details.
Infographic by: Visualcapitalist.com
