BELIEVE IT OR NOT..........Ted Butler (silver genius) and others, myself included...believe that
in the current precious metals "bull market", SILVER will prove to be
a better investment that GOLD on a "risk/return" basis.
Let me explain my "hypothesis".
1. GOLD and SILVER are the two precious metals that have been used as
"money" for thousands of years. It was the people (traders and
merchants) not governments, that established GOLD and SILVER as
money.
2. GOLD and SILVER have "intrinsic value", no person or govt. need
"guarantee" its "worth".
3. The "historic" GOLD:SILVER "ratio" was 10:1, (10) silver coins were
equal (1) gold coin. However in "modern times" the GOLD:SILVER
ratio has averaged 20:1 (aprox.). Today the GOLD:SILVER ratio is
50:1.
4. Today all the "gold" ever mined is still around as gold bullion,
gold jewelry, gold coin, and gold objects. This was also true about
silver until recently.
.....the coup de gra
Very few people"know" that there is currently more "gold" than
"silver" (physical silver, as in silver coin and bullion) in
existence in todays world. (No Govt. or Central Banker will ever
tell you this.... but it is FACT).
5. How did this "historic change" occur. Gold and silver were always
accumulated and stored because they were used as "money". In
Nature gold and silver occur geologically in a 16 to 1 ratio. Very
close to the "average" GOLD:SILVER "money" ratio (20 to 1).
this way......Today SILVER is still considered a "precious metal",
however it is also USED as an"industrial metal". Therefore, unlike
GOLD , which is SAVED as "money", SILVER is USED in "industrial
applications"(medical biocide, photography, electrical connections,
coins/metals, water purification systems, etc.). Everyday new uses
for SILVER are discovered. It is the most "versatile and important"
of metals in todays "modern and hi tech" world.
6. The SILVER price is kept low by "design". This is accomplished by
"using paper silver"(selling "silver futures" on the COMEX). The
problem is you can't use "paper silver" but only "real silver" for
"industrial uses". So, its "just a matter of time" before the "gig
is up". Then SILVER will "priced" at its "true value". I believe
that to be $100+ SILVER, and $2000+ GOLD (historic ratio of 20:1).
7. This is why the GOLD and SILVER "ETFs" came into being. Smart
investors know the above mentioned information.
8. In this "battle" DAVID (read small investors) will "slay", GOLIATH
(read bankers). How? The "bankers" have sold so much "paper silver
futures" they cant "cover" with "real silver". They are "trapped".
The "millions and millions" of ounces of "real silver" dont exist.
The "banks" have "fallen on their own swords". Such are the "wages
of GREED".
.....lastly
"fools are soon separated from their money....but wise men prosper"
I respectfuly encourage every reader of this article to do his
own "due diligence".
BELIEVE IT OR NOT........
"