Are you in the 1%? SILVER: How does your stack add up??
Im a "Stacker", its no secret... but I got to thinking the other day how does my stack compare to others?? Can enough, ever be enough!
It may suprise you to know how little silver you actually need to have, to be in the top 1% of all silver stackers worldwide. For the purposes of this blog, im going to be talking about private individuals; not countries, not organisations, not trusts, not that dirty fake silver - ETFs.
Plain and simple, hard and fast, just your everyday bullion coins and bars.
So when trying to calculate where i stood in the world of precious metals, i first need to work out how much bullion is actually out there in private hands...
After some pain staking research- enter Google, the closest i could get to actual figures was a span of numbers, ranging from 4 - 5 billion ounces(2021). Im going to be assuming 5 billion ounces(oz) are currently in circulation, as this will over estimate the number of oz needed to be held to make it to the top 1%.
According to GoldchartsRus countries around the world are holding approximately 1,000,000,000oz of the shiny silver metal, which leaves us to assume that 4billion oz remain in private hands.
Now we know how many oz of silver bullion are out there, we now need to find out how many people there are that physically collect silver.
Theres clearly no accurate way of doing this as an individual, but by using my new best friend (Google), it does show me that there has been surveys and polls carried out in different countries. By extrapolating data and making a few assumptions, we can reach a ball park figure globally. Areas of the planet have a diverse range of stackers, with some parts of the planet haing a population that stack silver at 4%, with some countries population that stack silver at 11%.
Avaeraging out these figures, we get a global figure of 5% of all people have at least some silver bullion in their stack.
We can now use this information to crunch some numbers.
WORLD POPULATION: 7,720,000,000
OZ of circulating silver bullion: 4,000,000,000
% of the population that own silver: 5%
7,720,000,000 - 95% = 386,000,000
If you own silver, you are one of only 386 million people that do globally. The numbers are beginning to look in your favour now.
With just 4billion oz available, and just 3.8million people owning silver, this indicates that there are just 10.36oz per silver stacker.
If youve followed this post this far, and understood what ive said, then you must realise that an even distributions like this very rarely ever occur. So what im going to use to get a more accurate number is something called the PARETO PRINCIPLE
The Pareto principle, also known as the 80/20 rule, is a theory maintaining that 80 percent of the output from a given situation or system is determined by 20 percent of the input. The principle doesn't stipulate that all situations will demonstrate that precise ratio – it refers to a typical distribution.
In a nut shell - the top 20% own 80%, and the other 80% own the remaining 20% of global silver. This principle doesnt just apply to silver but to a wide range of alternative assets too. I can say this with a pretty good degree of accuracy, and you may have even observed this principle too in practice but never given it any thought before.... now you know it, ill bet you notice this rule everywhere and with everything now.
For a more accurate distribution of silver, i will now be assuming these figures:
20% own 3,200,000oz
80% own 800,000oz
Honestly, if youve not fallen asleep already -CONGRATULATIONS. Using the information weve already gathered we can calculate that to be in the top 20% of all silver stackers worldwide, you would need to hold just 42oz of silver (assuming the 80/20 split).
If youre holding over 42oz of silver, youre already in the top 20% of the worlds population.
We can whittle this down even further. Im going to use the Worlds Global Wealth Distribution Pyramid, and make a few tiny assumptions.
SOURCE
Using this data, i am assuming that 5% of individuals own approximately 65% of all the wealth. Applying this knowledge to the silver stacking community, we can determin that the top 5% of all stackers own approximately 2,600,000,000 oz, or 133oz per person.
If youre holding over 133oz of silver, youre already in the top 5% of the worlds population.
Once again, referring back to the Wealth Distribution Pyramid, we can ascertain that the top 1% of silver stackers own and hold 40% of all the bullion silver circulating. This would mean that just 1% of us, hold approximately 1,600,000,000oz of all the silver!!
If youre holding over 425oz of silver, youre definitely in the top 1% of the worlds population.
So there we have it folks..... It takes just 425oz of silver to be in the top 1% of private silver holders globally. So where do you stack-up? Do you believe, as I do, that silver and gold are real money, and that they are a great way of transferring wealth in the great crash thats approaching at break neck speed?
While being then1% is a pipe dream for some, owning just 5oz is well within everyones reach. I can not stress highly enough, the importance of having some precious metals in a varied investment portfolio. With inflation skyrocketing, and doom and gloom on the horizon, seriously; go get yourself some silver.
40+yr old, trying to shift a few pounds and sharing his efforsts on the blockchain. Come find me on STRAVA or #actifit, and we can keep each other motivated .
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