Today, there is probably about 5 billion ounces of
above-ground gold in the world, enough to fill about three Olympic size swimming
pools (200m x 50m x 2m). Experts estimate that about 20-25% is in central bank
vaults, about 50-60% is in jewelry and about15-20% is held privately as coins and
bullion, so only a total of about 2 to 2.5 billion ounces are in tradable form,
enough to fill about one and a half Olympic size swimming pools.
Although men have probably mined about
50-100 billion ounces of silver, most has been used up in industry or discarded, so
experts estimate that the total quantity
of above-ground silver today is actually about 5 billion ounces - about the same
as gold. Of this, about 80% is estimated to be in jewelry, silverware, mirrors,
photographic film, batteries, solar cells, electronics, etc., and about 20% (1 billion ounces) is estimated to be in bullion form (i.e.,
coins and bars which can be easily traded) - about half of the amount of gold
bullion. However, it could be two or three times this quantity, as some
people or governments may be secretly hiding some.
Holding Gold and Silver
The US Coinage Act of 1792 defined a US dollar as
0.84869 ounces of silver, but the US later went off the gold standard in 1933 and off the silver
standard in 1965. Most countries today have followed this practice, so most people today don't think
much about holding gold and silver, especially since state-controlled schools do
not teach students about the history of coinage and how debasing any currency
has ultimately led to the end of the currency.
However, since the time the Federal Reserve System was
established in 1913, people estimate
that cumulative inflation due to the printing of paper money has been somewhere
between 1000% to 5000%. That means that the dollar today is worth
somewhere between 2 to 10 cents compared to its original value in 1913.
This is illustrated in today's silver price. The US dollar is now worth
about 0.0579 ounces of silver, down 93%, even though silver is still greatly undervalued
due to its industrial consumption in excess of new production. Unless the
Fed stops inflation and massive new discoveries of silver are brought above
ground, we might see the US dollar become worthless and gold and silver prices
continue to climb.
Since gold and silver prices have quadrupled
since 2000, more people are buying gold and silver, and several countries are currently minting gold and silver
coins. For example, Mexico has silver coins called the “Libertad,” which are currently valued (in terms of their paper currency) at several times their value when they circulated, and demand for such coins appears to be increasing.
At the same time, a growing number of
investors are buying up gold
and/or silver, because they see it as a hedge against inflation. This has
especially been true since the introduction of two electronically traded funds
(which is backed by real gold and is intended to follow the London spot price of
gold) and SLV
(which is backed by real silver and is intended to follow the London spot price
of silver.) These two funds have made it easy for people to hold gold and
silver in their stock portfolios without taking physical possession.
Holding Gold and Silver
in the Future
Since most countries no longer back their
currencies with gold and silver and since 99% of retail transactions in
industrialized countries are now done electronically, most people in the world expect that gold and silver
will never again be useful as a standard means of coinage or for retail
transactions. However, some people disagree. They believe popular
demand will bring back gold and silver into everyday use. In either case,
simple math tells us that the historic value will one day
Theoretical Values of Gold and Silver
Just divide the total estimated
amount of money in the world by the total amount of gold and silver.
Assuming that we have US$50 trillion in the world today (using the approximate
world GDP) and also assuming gold is historically worth 15 times what silver is
worth, then here's what we get:
Theoretical price of silver = US$50
trillion / (15 x 5 billion ounces of gold + 5 billion ounces of silver)
= US$50 trillion / (75+5 billion ounces of precious metal)
= US$50,000 billion / 80 billion ounces of of precious metal
= US$625 / ounce
Theoretical price of gold = 15 x price of
= 15 x US$625 / ounce
= US$9,375 / ounce
Check the math: US$625/ounces x 5 billion
ounces of silver + US$9,375/ounce x 5 billion ounces of gold
= US$3,125 billion + US$46,875 billion
= US$50,000 billion
= US$50 trillion
Of course, by the time this happens probably
nobody would accept US dollars for either of these metals. When will
it happen? Maybe this year. Maybe 50 years later. Only God knows. However, the
Bible clearly indicates that the value will come back before or during the end times.
Who wants prices to
remain so low?
There are two main groups of people who don't want
silver's price to go up: industry owners and bankers. The industry owners
use silver to manufacture their products, so a rise in silver prices would raise
their cost of goods sold. Bankers make their money based on usury
(charging exorbitant interest) and on promises they make to pay back their debts.
They also control all or most of the world's governments, which usually rely on
the psychological value of their fiat currencies. Thus, they certainly
don't want their system to be disturbed or appear to have any flaws. For
now, God is allowing them to dupe the public and keep the price of silver low,
but it won't go on forever like this.
Gold and Silver
At the time of the end ... the king of the North (the man of lawlessness) ... shall have power over the treasures of gold and silver, and over all the precious things of Egypt.
From this (and other OT prophetic verses) we can see that gold and silver will have value during the time of the end.
Otherwise, why would anyone want to have power over their treasuries?
In the latter years you (Gog of
Magog, Russia, who will be leading a great army with troops also from Iran, Ethiopia and Libya)
will come into the land of those brought back from the sword and gathered from many people on the mountains of Israel, which had long been desolate; they were brought out of the nations, and now all of them dwell safely.
You will ascend, coming like a storm, covering the land like a cloud, you and all your troops and many peoples with you ... and you will make an evil plan: You will say, ‘I will go up ... to take plunder and to take booty ... silver and gold, to take away livestock and goods. (Ezekiel
From this we can see that several nations will attack Israel with the intent of stealing their silver and gold. Thus, silver and gold will have value in the end times. Also, Israel will be loaded with it. How they accumulate it is a question to
ponder. Israel is already strong in biotech industries. Some people
say that there may also be great mineral deposits under the Dead Sea.
the day of the LORD is coming, and your spoil will be divided in your
midst. For I will gather all the nations to battle against Jerusalem ...
And this shall be the plague with which the LORD will strike all the people
who fought against Jerusalem: their flesh shall dissolve while they stand on
their feet, their eyes shall dissolve in their sockets, and their tongues
shall dissolve in their mouths ... Judah also will fight at Jerusalem.
And the wealth of all the surrounding nations shall be gathered together:
gold, silver, and apparel in great abundance. (Zech. 14: 1,2, 12,
this we see that in the end the gold and silver of the world will be gathered
together in Jerusalem. Thus, it will have value to Jesus as He rules His
millennial kingdom from there.
Transactions in the End Times
He (the beast out of the earth) causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name. Here is wisdom. Let him who has understanding calculate the number of the beast, for it is the number of a man: His number is 666.
From this we can see that there will be a society with strict centralized control of the currency or
currencies and all or most business transactions. Some people call this a "cashless society", but cash can take
many forms, so to be precise, it may be a "society free of retail
transactions using coins". How the government will do this is
unclear, but it's most likely to happen in stages. First, there are
technology concerns, then security concerns, then convenience concerns and
finally economic concerns.
The technology for an
implanted RFID chip is already available and is already being used for animals
and some children, elderly and mental patients. These chips can store data
and be used like smart cards. They can also be used with the Global
Positioning System (GPS) to track movement. The media's coverage of
terrorism is instilling fear in people's minds, and there is now talk that
blonde-haired, blue-eyed young people will become terrorists, so the day may
come when people will be asking the government to chip them to prove they are
are not terrorists. Adding personal financial data to ID data would not be
difficult, so convenience plus safety plus economic incentives could make it
happen quickly. Young people
today like credit cards, debit cards, smart cards, internet banking, etc. Nobody likes waiting in line at the bank.
coming, new super-fast internet called "The Grid," might also open the
door for quick, cheap internet access and e-commerce for rich and poor
alike. Finally, a collapse
of the world's economic system might be the final stage for the mark of the
beast to gain universal acceptance. Will Christians be gone by then?
Maybe. Maybe not. For further study, see the links below.
Questions for Discussion
How will conventional wisdom on currencies become ineffective in the current strange situation in which the entire world is flooded with dollars (and perhaps approaching the end time)?
When will silver and gold will regain their historic values (or perhaps when will God move the banking cartel to allow this)?
When will the US dollar die, and what will replace it (or what will be used in addition to
How will we sell gold and silver when it's time to sell?
Will non-physical forms of silver and gold become worthless at any time before the tribulation?
How does the USA fit into all this? Will it slowly fade away or die suddenly?
Whom should we listen to in order to hear God's plans for the coming disasters (Amos 3:7)?
and Further Study
by Jay O'Keefe: http://somehelpful.info/Money/Letters/Letter008.htm
4 Fundamentals of
Silver, by Jason Hommel: http://www.silverstockreport.com/2008/fundamentals.html
Prices, Facts, Figures and Research: http://www.galmarley.com/framesets/fs_commodity_essentials_faqs.htm
SLV Silver ETF, by
Adam Hamilton, June 20, 2008, about the history and purpose of the
SLV Silver ETF: http://www.gold-eagle.com/gold_digest_08/hamilton062008.html
of Silver: http://www.silverinstitute.org/uses.php
A Brief Explanation of the Project to Monetize the One Ounce Silver "Libertad"
Bridge, by Hugo Salinas Price:
Microchip Implants and Bible Prophecy: http://www.youtube.com/watch?v=_v6xUGSrApk&feature=related
Union and the V-chip: http://www.youtube.com/watch?v=vuBo4E77ZXo
Coming Soon: Superfast Internet:
The New Al-Qaeda- Blonde Haired, Blue Eyed Westerners:
For your own Bible study on gold and silver, you might want to try the
Blue Letter Bible online concordance which utilizes
Strong's Concordance - one of
the best tools available for word searches: http://blueletterbible.org/
Hommel has also written an article / Bible study about money, investing and
is the responsibility of Theodore Spaeth, and it is public domain.
Scripture verses are taken from the NKJV.
This page was last updated on 22 May 2010