Time to buy, not sell silver......Silver Is About As Close As You Can Get To A Sure Bet! Here’s Why
7 Reasons Why Silver Will Make You Rich!
I am very, very bullish on silver; the metal which is overlooked by most but will make the few who own it extremely rich. While gold will have a spectacular performance over the course of this bull market, it is silver that will be the MVP. Silver is about as close as you can get to a sure bet. Here are 7 reasons why silver will make you rich. Words: 2074
So says J. Edwards (goldstockmania.com) in an article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted and edited [...] below for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Edwards goes on to say:
1) Gold to Silver ratio
Historically a gold to silver ratio has been maintained between gold and silver where a certain amount of silver could buy 1 oz of gold. In fact a long time ago, there used to be a U.S. law that fixed the gold silver ratio at 1:15, which then allowed 15 silver ounces to buy 1 ounce of gold. Since 1840, the gold to silver ratio has ranged from 1:15 to as high as 1:97. Today’s gold to silver ratio sits at about 1:46. Many analyst believe that this ratio is currently out of whack and will return to historical levels which according to Ted Butler and others has averaged 12-15 oz of silver to 1 oz of gold. If the ratio returns to historical levels it would require a substantial rise in the price of silver. At $1400 gold, silver would need to be around $90-$95/oz.
2) Inflation Past and Future
Just as gold is a great inflation hedge, so is silver. As you know silver has been known as the poor man’s gold. The dollar has lost over 98% of its value and this erosion of the dollar continues but at an accelerated pace not seen before in the history of this country making it imperative that you take the necessary precautions to protect the value of your savings now. I have not seen anything more compelling than silver to protect and dramatically increase my wealth at the same time.
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The Federal Reserve is working overtime printing dollars and inflating the money supply which means every new dollar they create is taking away value from every one of the dollars in your pocket! This is where gold & silver really shine since this type of monetary expansion has historically driven up the price of gold and silver. You can see just over the last year or two how the fed has really kicked it into overdrive. The inflationary effect of the spike you see on the graph below has not yet hit, so it is still time to get positioned for the inflation tsunami and load up on silver while you can and while it’s still cheap. There is no end in sight and they plan to print more dollars until their little printing press breaks. Wait till you see what they do to the dollar for an inflationary encore.
Chart of US Monetary Inflation
3) Increasing Silver Industrial & Investment Demand
In 2009 global silver demand hit 888 million ounces, while worldwide mining production totaled only 680 million ounces, thus creating a 208 million ounce deficit. Many people don’t know that silver is the most used commodity in industry next to oil. Industrial demand continues to pick up with new applications for silver coming to the market all the time, like silver zinc batteries. The silver zinc battery market alone is forecasted to be a large driver going forward for silver. If you are looking for more reasons, then how about Ten Thousand Reasons To Buy Silver, which goes into more detail about the numerous industrial applications that require silver. Yes, there are many of them from water filters and band-aids to electronics such as cell phones and RFID tags.
Silver investment demand is on the rise as well and perhaps may soon surpass that of industrial demand. Just like people are turning to gold in the great flight to quality, silver is also starting to attract demand from investors. One of the biggest wildcards in the mix is China. Until recently, the chinese government did not allow its citizens to buy precious metals. They have done a complete reversal and now encourage their 1.3 billion citizens to buy, buy, buy. India, that other country that has a 1 billion plus people in it, has a long history and tradition of buying both gold and silver. I believe silver demand in India will increase as the price of gold rises.
Demand is also picking up in the United States, with the US Mint reporting record silver eagle coin sales… [which might well] consume the U.S.’s entire silver production for 2010. This is very significant because, whoever typically buys U.S. based silver will need to go and find it elsewhere since the U.S. Mint by law, is required to use only silver produced in the United States.
4) The Real Silver Advantages: Leverage & Availability
Since more people are waking up and running to gold for asset protection due to the erosion of the dollar and other fiat currencies, gold will naturally not be as affordable as silver. One could argue that we have already reached this point. People will come to reason that they can get the same level of protection as purchasing gold, but at a more affordable price by purchasing silver instead. The late comers to the party who missed out on the chance to buy gold when it was only $250/oz will want the next best thing which is silver. Likewise, many investors will also see that they can get a much higher leverage on purchasing silver. So if gold is starting to get too expensive for your wallet, then why not get some leverage by purchasing silver? The best times to buy is whenever the prices are falling. Since you get way more ounces of silver for your money than gold, you naturally get more leverage. Leverage coupled with a great investment, equals great profits! Just be clear, do NOT buy silver on margin! Short term volatility makes buying silver and gold on margin too dangerous.
No matter what you have heard or read, there is only one real way to buy silver & gold and that is physical. If you are not buying physical silver and/or gold, then more than likely you have a paper claim to someone else’s physical silver or gold. Either make a trip to a reputable local coin shop or buy gold and silver online at trusted bullion companies. You should really do both for geographic diversity. I also like the online storage options because it’s so easy to buy, sell, and securely store my precious metals.
Silver availability is like a game of musical chairs, when the music stops someone will be without a chair. The amount of above ground silver has been just about exhausted over the past century. I have seen estimates as high as 1 billion ounces of silver world-wide above the ground. Even in this worse case scenario and assuming that all this silver is for sale ( which most of it is not), all the silver in