Earn FREE Silver! -- “Silver Snowball”

Silver Investing is in my opinion the best investment choice out there today. In this post I talk about silver coins, silver eagles, silver dollars, silver bullion, silver bullion coins, silver bullion bars, silver bullion price and  how to buy silver bullion. Many experts believe silver is the investment of a lifetime, and I will tell you why.

Never before in the history of silver have there been so many bullish factors for the price. Once this price explosion happens, it will be historic in its magnitude. When the silver bull is over and profits have been taken, it will go down in the history books as a price explosion never before seen in a commodity.

The silver price today sits at an extremely cheap price of only $17/ounce. Just 8 years ago silver was down around $4/ounce. That’s over a 400% return for those who held.

To be conservative, many of the leading experts on silver have predicted prices of at least $50-$100/ounce over the next few year. 

Now, that is an extremely conservative number when you look at all the bullish factors in silver. In fact, many experts believe that silver will surpass gold in price, and I will explain why this is.

Silver vs. Gold

Silver and gold play similar roles as a monetary metal. Both have been used as currency for over 6,000 years, and both act as a store of wealth. That is where the similarities end. Silver has a dual functionality in that it is used as a store of wealth, and as an industrial metal.

Everything from electronics & solar panels to water filters & antibiotic creams consume silver. In fact, over 50% of the silver demand is used for industrial applications.

 Silver is much more affordable than gold. Today, you can buy a roll of 20 American Silver Eagles for around $400. It will cost you over $1,000 to buy just one American Gold Eagle. For most people, silver is the better option.

Historically, the ratio of gold to silver has been around 15:1. This means that the silver price should be somewhere around $70/ounce today.

Bullish Factors

According to the USGS (United States Geological Society), all the silver in the world will be consumed by 2020. You read that correctly. The USGS stated that silver would be the first element to go extinct on the periodic table of elements. If that is not a huge red flag and an extremely bullish factor for silver, I don’t know what is. This is just one of the many hugely bullish factors for silver’s price explosion. Other major factors include the following.

1. Economic uncertainty and the dollar falling in value
2. Government printing of money
3. High investment demand
4. COMEX price manipulation
5. Shortages
6. Increased industrial demand
7. Lack of good mining sites

Falling Dollar

The dollar is quickly fading as the world’s reserve currency. Many countries know this and are getting out of dollar related assets and buying gold and silver. China is the biggest holder of Treasury Bonds that the U.S. has, and they have begun selling those bonds and buying gold.

Our government knows this is bad, and they have even gone as far as to send little Timmy Geithner to China so he can beg for mercy. He was even laughed at by Chinese college students when he remarked that the dollar was still strong.

They would have you believe the same thing, but you are smarter than that. That’s why you are reading this. The very last thing the government wants is for you to trade your dollars and buy silver or gold. Why? It’s because the dollar is our issued currency.

By getting out of dollars and into gold and silver, you are taking your money out of dollar related assets like the stock market or Treasury notes.

What happens when people get out of dollars? The stock market takes a dive. We learned this during the Great Depression. Do not be duped into thinking that you are somehow supporting our economy by staying in dollar related assets.

The people of Weimar Germany and Argentina who did not get out of paper currency while the government was inflating the currency lost everything. The only winners in any inflationary situation are the gold and silver owner, and this has been proven hundreds of times throughout history. 

Do not let the media play this game on you about the jobless recovery, and all this other garbage they keep spouting. There is no such thing as a jobless recovery. That’s like being almost pregnant, as Gerald Celente would say. The market will go back down, and it will fall dramatically.

Any good we are seeing in the stock market now are due to the trillions of dollars that were pumped into the system. They are just propping the market up temporarily. When they can no longer print anymore money to prop the system up, it will come falling down like a house of cards. The market is coming back down. Many experts think the Dow will drop to 4,000 or even 2,000.

Printing of Money

The Treasury department has kept the printing presses going non stop. They have printed trillions of dollars for so called bail outs and rescue packages. All of this printing is leading to the inevitable, inflation.

The more money our government prints, the more worthless our dollars become. That is why it is so important to get your money out of dollar related assets. That includes your 401K or IRA. 

Many economists are saying just to take the early penalty and get your cash out of the stock market. Be very wary about how much cash you keep in the banks as well. You certainly don’t want your money sitting in a bank account earning a 0.5% return because the inflation rate is somewhere around 9%. This means you are losing 8.5% of your dollars value just having it in the bank.

You need to get that money into silver and gold because unlike the dollar, it has intrinsic value. Silver and gold will never go to zero. The same cannot be said about the dollar. It has no intrinsic value. It is a piece of paper with ink stamped on it all official like. It is a tool of deception used by the government. See my post about the federal reserve for more in depth information.

 Where is the value in a piece of paper? I guess if you had enough of it you could burn it to stay warm like the people of Weimar Germany during the 1920’s. There are photos of German citizens with wheel barrels full of money to buy a loaf of bread (see google images). Their government did the same thing our government is doing now, and the value of their currency went to zero. The gold and silver owners were the only ones spared.

That is the great thing about silver and gold. You can hold it, it’s heavy, and it has a distinct value that paper does not offer. That is why it is always used as a safe haven for people who want to protect their wealth. If you stay in dollars you are not protecting your wealth, but rather burning your wealth.

Investment Demand

The investment demand for silver is at an all time high. The U.S. mint even had to stop minting silver eagles due to the extreme demand. Many mining companies who mint their own silver have you wait 4-5 months before delivery.

All of this increased demand has caused the premiums on silver coins to sky rocket. So, the spot price of silver might be $16 but the consumer pays around $25. This is the markets way of saying that the spot price of silver should be valued at $25 at least. There are forces trying to keep this price down, however.

As I stated earlier, China is buying heavily into precious metals. China has historically outlawed the ownership of silver, but has just recently announced the legalized ownership of silver.

They are even marketing silver ownership to Chinese citizens on TV. Can you imagine where the price will go when this really catches on with the citizens of China. Let’s not forget that there are 2 billion Chinese people. 

Ted Butler On Silver Shortages

COMEX

The COMEX (a.k.a. Commodities Exchange) is a part of the NYSE. It is set up to facilitate futures trading of commodities like silver. Each COMEX silver contract is 5,000 ounces. Just like any futures contract you can go long and bet that the price will go up, or you can go short and bet that the price will drop. If you are right then you make a profit.

This is where the COMEX gets interesting. There are commercial banks who buy thousands of silver contracts. For a long time now there have been three commercial banks shorting the price of silver.

These banks hold most of the outstanding silver contracts on the COMEX. So, when these banks short the COMEX it pushes the price of silver down, and they own so many contracts that they are able to easily push the price down when it is beneficial to them.

 These banks are making billions of dollars by shorting the COMEX, and every bit of their activity is illegal. The COMEX just refuses to stop them from manipulating the price of silver down. Why would they want to push the silver price down? Well, because they want the dollar to appear strong. These banks are in the process of being stopped for their illegal behavior due to the efforts of many people exposing these commercial banks illegal acts.

Once the manipulation of the silver market is stopped, and it will be soon, the price will go bananas! Even if the manipulators aren’t forced to stop short selling, the physical demand will eventually overwhelm them and they will be forced to cover their short positions.

 Shortages

Major shortages exist in silver right now. All of the above ground silver has been depleted over the past 25 years due to the massive industrial demand. In fact, Silver is more rare than gold above ground, by a large margin.

Industrial Demand

Industrial demand will be ever increasing as more and more uses for silver become available. Silver is used in almost every electronic device you have in your home. It is the best conductor of electricity that is available. Imagine every Chinese citizen having a refridgerator or tv in their home. You can see where this is going?

Most of the industrial applications that are used are consuming silver. What this means is that the silver is not recoverable. It is simply thrown in a landfill never to be seen again. Silver will one day become recoverable, just like gold when it is used in electronics, but first silver must go to a price where it is economical to recover it.

Mining

The mining of silver is becoming more and more difficult. Companies are having to dig deeper mines and a lot of the mines that were once producing have been completely mined out. This is making it harder for companies to keep up with demand and even harder to find new locations to mine. Most junior mining companies trade for around $.10-$3.00/share. These are referred to as penny stocks because they trade so cheap. Do not invest in penny mining stocks until you check out this information on penny stock investing.

Since the price of silver has been floating in the $12-$15 range for so long, many miners are shutting their operations because it simply is not profitable.  Also, most mines do not produce just silver. Mines also produce base metals like nickel, copper, zinc, and iron. However, money is starting to flow into the miners now that silver has started to take off. When the economy started slowing back in 2008, so did the demand for these base metals. That resulted in less silver coming out of the ground as well. This is very bullish for silver! If you want to make money investing in silver stocks then check out this Mining Stock Investor Guide.

When I began investing in gold and silver, I spent many hours researching and trying to educate myself before making a purchase. If you simply read this gold and silver report ,you will save yourself time and money. Happy investing!

Earn FREE Silver! -- “Silver Snowball”