Exters Tip: Why Physical Silver Belongs at the Top of Exter’s Pyramid
Years ago, Chris created a new version of American economist John Exter’s famous pyramid when he added physical silver to its tip. Let’s call his pyramid Duane’s Pyramid because it needs to be differentiated from Mr. Exter’s pyramid, which stops with gold. Chris’ addition of that tiny tip of silver is magnified on his newly released round, Exeters Tip, which makes it easier to see. It also demonstrates that silver, not gold, is the most highly liquid asset in the pyramid.
2026 "Exters Tip" Silver Proof Coin, by Chris Duane
Liquidity, Risk, and the Structure of Exters Pyramid
The more liquid an asset is, the easier and quicker it can be sold. This is why Exter’s Pyramid, which ranks assets by risk, shows derivatives, and unfunded government liabilities, at the opposite end of the pyramid from gold. The term “unfunded government liabilities” means there is not enough funding to offset the expense involved in sustaining the government’s social programs including Social Security, Medicare, federal employee/veteran benefits and state level public pension plans and the retiree healthcare (OPEB) programs. So, the government borrows more money to cover those expenses and sinks the U.S. taxpapers deeper and deeper into a quagmire of unrelenting debt.
The Debt Problem at the Base of the Pyramid
2026 "Exters Tip” Silver Proof Coin, by Chris Duane
Most people would agree that in order for assets to make sense they should go up in value, not be drowning in expanding debt as is the case with all of these programs. To make matters worse, these enormous liabilities are the largest asset class in the pyramid, and additionally, they are so debt-ridden that they are nearly impossible to sell.
And herein lies the problem. Incredibly, unlike all of the other asset classes, this one was deliberately designed to be risk-laden because there is no pay-back requirement. As a result, and predictably, these government programs have become an abysmal financial albatross around every U.S. taxpayer's neck.
From Sovereign Debt to Unfunded Liabilities
In John Exter’s time the riskiest spot on his pyramid was reserved for our third-world, sovereign nation debt. The government had a low expectation for when, and how, those loans would be repaid, so they were considered high-risk. But, the government still expected them to be repaid and with interest.
Today, those same 1960s “Great Society” social programs, listed as unfunded government liabilities, have usurped that position and incredibly they contain no obligation whatsoever that the money be repaid. They are simply a “redistribution of wealth” parlor game played with somebody else's money. Whoever thought this was a viable proposition was an economic dumbbell. Anyone with half of a brain in their head should have been able to predict the astronomical debt and the obscene mismanagement that has resulted with the government at the helm.
Why Physical Silver Sits at the Tip
Now let’s turn to physical silver and look at why Chris considers it to be the safest, and most liquid, asset class on his pyramid. When John Exter created his pyramid during the 1970s, gold was considered to be the most liquid of all asset classes and silver was simply considered to be money. Today, with the negation of the gold standard, the recent boom in electric batteries, solar panels and technology manufacturing, everyone wants physical silver for their products and very little silver is used in our money.
Bitcoin literally lurks around on the internet snatching up flies like a spider in its web and yet buyers continue to voluntarily walk into its trap like zombies. The attraction to bitcoin is similar to those who were mesmerized by Count Dracula. All the warning signs are there - the cloak, the fangs and the insidious smile and yet his victims continued to ignore the obvious and voluntarily became his prey. Bitcoin buyers should take a deep breath and step back because,”If it looks too good to be true, it probably is.”
Physical silver now has 10,000 industrial uses and the demand continues to rise as the supply continues to shrink. There just isn’t enough physical silver in the ground to mine and there’s very little left above-ground as technology gobbles up, and then trashes, what’s available. This is why physical silver is such a highly valued, and uniquely liquid, asset, even when compared to gold which now has only one primary usage - jewelry. Not only is silver easy to sell because, unlike all other asset classes, it’s an unencumbered asset, but it's also in great demand.
So, although Chris’ new strike, Exters Tip, appears to indicate that there is a lot of silver available when compared to the other asset classes, it's simply an optical illusion. Silver is actually on the cusp of becoming Unobtanium. Better buy it while you can.
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