Silver – Is it God’s Gift to Investors?
Silver is trading at $15.50 per ounce while it’s distant cousin, gold, is trading at $1100. At this price, silver seems to be an incredible investment. But is it really?
For more than six thousand years, silver has been regarded as real money. As a matter of fact, in many languages, the words ‘silver’ and ‘money’ are interchangeable. At one time, many coins, including the U.S. dime, quarter, and half dollar were made with a large percentage of silver. Today, they contain none. In fact, none of the world’s currencies currently contain silver because the value of the silver would out-value the denomination of the coin.
In 1792, hundreds of years before a global economy was ever considered, the U.S. government declared that the price of silver would be 1/15 of the price of gold. In other words, 15 ounces of silver would buy one ounce of gold. Today, the ratios are no longer regulated and at times vary wildly with the free market system. Precious metals experts nevertheless consider the silver-to-gold ratio standard to be approximately 1/16. This being the case and with gold as the measuring stick, silver should be trading at $68.75 per ounce. If you do the math, you’ll see that the current silver-to-gold ratio is 1/71.
Is this a buying opportunity or is it a sign that silver is fading from its position as a precious metal?
Most of the world’s mined silver comes from Mexico, Peru, and Australia and the above-ground supply of silver is estimated to be one-quarter of the above-ground supply of gold. Because of the way it is used on photographic paper and x-ray films, much of the silver that has been mined is lost. Yes, silver is in fact more scarce than gold!
In addition to photography and x-ray, silver is used as an antibacterial in medications, mirrors, computers and catalytic converters. Because silver has the highest level of electrical conductivity of any metal, more uses for silver are being researched every day. Sterling silver, identified by the numbers 925, is 92.5 percent pure and is used in jewelry, silverware, bowls, platters, ornaments, and musical instruments.
Current worldwide industrial uses of silver are estimated between 700 to 900 million ounces per year. Total mine production has been 500 to 590 ounces per year, with a supply of 100 to 150 ounces from recycling. This leaves an annual deficit of 100 to 140 million ounces. In the past, these deficits have been made up by governmental and other reserves. For example, 60 years ago, the U.S. government held six billion ounces of silver in save. Today, it holds none.
Recycling of silver is becoming increasingly important. It can be recycled from catalytic converters, electronics, dental alloys, and jewelry fragment. This is the reason for the increase of neighborhood electronic recycling drives, in addition as increasing cash for gold/silver offers.
With everything important comes a conspiracy theory…
Because of silver’s low supply, high need, however low price, it doesn’t seem economically sensible. It is suspected the silver markets have been manipulated for years to keep the prices low. If this is the case, the plan will soon fail due to the shortagen of the silver.
According to precious metals expert Philip estimate, silver is nevertheless sitting safely in stage one of a bull market. Stage two will be marked by the price of silver hitting $50 per ounce; when it begins to garner worldwide attention; and when the general public begins to move into silver at an aggressive speed. The price of silver will skyrocket and those that own physical silver (not exchange traded funds-ETFs) will prosper with an opportunity for wealth like no other time in history.
Now that you understand the basic facts surrounding silver, you should want to keep every piece of silver that you own. In fact, lock it in a safe! Don’t become a victim of silver (or gold) recyclers who want to buy your silver for a very low price only to sell it when the price escalates.
Although I am not an investment advisor, my research has uncovered the following information regarding the buy of silver:
Silver is getting difficult to acquire but it’s important to own. Consider buying physical silver and not a potential for silver, like a futures contract or ETF. Be sure that it is certified, has 999.9 fineness, and comes at a standard weight in either a coin or bar.
It is a good idea to have non-government-issued silver. The reason for this is that government-issued coins ultimately belong to a government. It’s been said that it’s not likely to happen again, but silver can be recalled by a government or declared illegal to keep up, consequently valueless to you. In the case of harsh shortages (which is the present case), it is conceivable that a government could find it necessary to confiscate its silver coins from its residents.
As an additional measure of safety, confirm that your silver supplier has a guaranteed repurchase program. This will ensure that the silver you are buying is authentic. YOUnique Wealth(TM) is one such company that offers both 999.9 silver and gold and is certified by the London Bullion Market Association. Contact YOUnique Wealth(TM) at http://www.YOUniqueWealth.com/shift.