Silver is unlikely to pursue gold again, “can never go back as money”, here’s why – Lobo Tiggre

Even if the world steps onto a different gold standard, silver, which has historically been used as money, may not hold that role in the future.

“Even if the global financial world adopts a new gold standard in the future, silver may never come into circulation as money again,” Tiggre wrote in a recent research report.

Speaking to Kitco News host David Lin, Tiggre said that blockchain technology can now fulfill much of the role silver has played in the past of representing fractions of the value of an ounce of gold.

“You used silver to make change and you used copper to change silver. It was like this. But in today’s world we have wonderfully solved this problem with blockchain / distributed ledger technology. There are dozens of Goldbacak cryptos out there right now, ”he said.

Tiggre also noted that while gold and silver have historically been closely correlated, that relationship has collapsed in the last year.

According to Tiggres research, the correlation between gold and silver since 1975 is 0.8876. The 10-year correlation coefficient is 0.7511. Last year the correlation dropped to 0.1959.

Going forward, Lobo expects this divergence between silver and gold to continue as silver behaves more like a base metal rather than a monetary metal.

“The value of silver would be derived from its industrial supply and demand bases. The price of silver would track copper more closely than gold, ”he wrote in his research report.

For more information on Palantir’s decision to buy $ 50 million in physical gold and Tiggre’s views on the US stock markets, see the video above. Follow David Lin on Twitter: @davidlin_TV