In absolute terms silver is undervalued. The nelson-hunt silver procurement collective is now active. But let's revisit the original motivation for this project. A picture should help with this.
Ask yourself what is wrong with this picture.
Silver has unusual properties that make it essential for industrial applications (aside from its monetary use):
The most conductive (electric and thermal) metal;
The most reflective metal;
Antimicrobial.
Facebook is valued at over 30x all available silver in the world. I do not use Facebook but from what I can tell the value-add to society FB offers is in centralizing and disseminating individual's personal information to advertising companies. In the process monetizing the actual individual personality of humanity. This is pretty interesting, or at least it would be if it were used for something more productive than selling razor blades and other consumptive goods.
I may never live to see a more gross imbalance in valuation. Efficient markets my ass. Nelson is coming for all of the silver. Hold on to your hats.
Image source: http://www.visualcapitalist.com/worlds-money-markets-one-visualization-2017/
Very interesting. I wonder how distributed the holders of silver are vs the equity in those companies?
Probably diverging more and more in light of the massive share buy-back programs of the past few years.
That is a very good point. Concentration of a market goes to the heart of this project.
By facilitating the use of a decentralized and transparent market I believe more efficient price discovery can be achieved. More efficient price discovery = more efficient allocation of resources = greater provision of goods and services = more wealth and prosperity for mankind.
I would love to see an end to what appears to be a clear market manipulation by the futures market issuers. Is there anything I can do to help achieve that with my relatively meager quantity of investment funds?
Bitshares is a permission-less platform. You don't need permission from me or anyone else to interact with all it has to offer. The objective of 'nelson-hunt' is to create a community of like-minded people. Just like fans of a sports team will buy tickets together - fans of silver can congregate with each other through bitshares.
If I can be of more help please contact me directly on discord at HonorableJn7#4854
In no time centralised platforms may lose most of their users. The future lies in decentralised platforms. Financial transparency, privacy, and efficiency is what most people seek.
Exactly right. That's what we are enabling here at DaoStreet. There are a lot of projects that have this same mission. Just a little coordination and we will arrive in no time.
That sounds like a good plan. I hope you all see it through.
Nelson Hunt as in Nelson of 'Hunt Brothers' you posted about a few days ago?
Fakebook is like a centralized database of personal information where you give partial to complete rights of the data (you input into their servers) to them. Once you look at the valuation of the company to the service it provides you realize that it is market a anomaly. It virtually provides nothing of value to its users but earns far more than traditional social interaction service providers like UPS or telephone companies.
It's unreasonable valuation also comes from the fact that Facebook makes its users indirectly work for them without having to pay them.
Whereas silver has dual use - Store of wealth and noble metal that is of industrial (electronics, medical, scientific) use.
Yes. Exactly. The most powerful force in the world is incentives. You keyed in on a huge point in fact - Facebook leverages humanity's time/life to generating value for itself and shareholders.
The 'nelson-hunt' collective is for people who want to support this experiment. https://steemit.com/silver/@john-robert/nelson-lives
I must have missed the post where it is explained on how to join the collective.
Are you on discord or telegram?
I'm on Telegram. Fat Fatfatguy
Ok I wasn't able to search for you for some reason. I am @johnrobert99 and you can call me out in this group https://t.me/bitshares_official
I consider physical silver the best insurance of all.
I like the generic silver 1 oz. with no premium other the manufacturing cost. I prefer Australian or Canadian silver coin or mini-mintage from GSM.
Also, junk silver, old US dollar or half-dollar coins from 1964 or earlier. The over 100-year old silver coins are great just to look at. They are great to pass down to my grandkids as well.
Nice. I am all aobut the US junk coins as well. They strike a happy medium between premium and value in my opinion.
Plus I am a history buff. I find the fact that NO ONE I talk to has any clue about the monumental shift in our US money post 1964...
Yeah, silver is the most undervalued and manipulated asset. The value is not what is supposed to be against the value of gold..
Some say that. I don't want to engage in speculation. The nelson-hunt project is an attempt to discover this once and for all though.
If you go to the link and scroll down you will see the valuation of gold and comparing that to silver -- well as you say there is something interesting there.
At this moment, silver trades at $17.15. When Nelson bought yesterday, silver was a little less than $17. How is correlated the spot with bts-silver?
Don't put too much stock into the connection between the real-world price and the bts-silver price at this point in time. This is the early innings. At the moment the bts-silver has little attention so it is not an effective comparison. This project will generate more interest and more trading activity.
The long term goal is to have bts-silver trading volume more active than the off-chain centralized paper markets. Then I would expect the exchange ratios to track more tightly.
We see manipulation every day, including this morning when the market opened for trading. Silver gaped up 0.33, but was beaten down with UN-ending paper shorts. The thing I see lately, it takes more volume of short to knock down the price. Each attempt has less effect as the price returns either immediately or within a few days. When the shorts have to buy back their shares, watch out on the other side as there may be no bid, on the sell side.
Yes, I recently heard about a technical change in the arrangement of the market. That the speculators and commercial traders flipped with each other (one long the other short). This was in the Commitment of Traders Report. It is supposed to be a bullish sign for silver.
Silver is coming up while facebook is going down.
Metals and cryptocurrencies are the future of currency.
I agree.
Pretty interesting!!!!! I really love your articles!
Thanks man. Then by your name I can tell you must be familiar with Nelson Hunt? That is one of the projects I am most excited about.
The characteristics of silver certainly makes it suitable for many projects and artefacts. It sad how less value is given such elements rather we highly value two-faced platforms that aid and destroy us at the same time.
DaoStreet will award 1 bitSIlver to anyone who can offer a version of this with Bitshares' market capitalization included. It would be a barely perceptible speck.
Can you throw more light on this point. I seem not to comprehend.
Bitshares has a valuation - about $400,000,000.
https://coinmarketcap.com/currencies/bitshares/
I would like to see that compared to silver and facebook on the image. Anyone who posts that image and a bitshares address will receive one bitSilver.
Okay. I now get it. I don't have a bitsilver wallet , but I might try my hands on it tho
Well let's fix that. Welcome to the incredible world of bitshares - https://wallet.bitshares.org/?r=michigan-bts
How do I check my wallet address. Can't find my way around.
Your address should be in the top right - do you see anything there? What name did you choose I will check.
I was not clear enough. I am looking for something even simpler than this. The market cap of bts is less than 1/28 of silver. So I'm looking to see bts added to the original visual.
I appreciate the effort on this though and because I was less than clear I will send you .25 bitSilver if you send me your address. The rest to come if you can get the image described just above. Make sense?
Did I get it right this time?
This is even better than what I wanted. This gives me a good idea. If you post this weekly I will upvote you every time.
Tangential question for you @john-robert: I want to buy bitSILVER on margin on bitshares but still aren't familiar with buying on margin. If I buy with X5 BTS backing and bitSILVER's value goes up X50, I make money and don't get margin called, right? Is the only way I get margin called is if the current value of BTS goes down to ~$.035?
That is a great idea... in the future (hint it's part of the objective of this project). For the time being bitshares is so shockingly under-appreciated/unknown that most of the older coins are in global settlement. In effect this means that margin for these assets is impossible.
I'm not sure I understand. The "borrow bit silver" button is right there in my interface. Am I using the wrong terminology or do you mean it is too unsafe to leverage your BTS versus bitSILVER or do you mean I may not be able to get a price that is in line with physical silver if the price goes up?
No you understand correctly. You will see though if you attempt to actually enter a margin position that you'll get an error message. Bts will have to go higher before margin functionality is returned.
Understood. Can you possibly answer my original question to aid my understanding as if margin functionality were functional at this time?
Nice innovation
But I think there we also be competitions in market frame as well as inflation and deflation