It is shockingly apparent when looking at the fundamentals for silver that the silver price will explode in the coming years. The amount of silver above ground has been dwindling at a shocking rate over the past 20 years, and industry along with the investment community, are demanding much more.
Silver plays the role as not just a monetary metal, but also functions as an industrial metal. Many applications are consuming massive amounts of silver in industry today. Electronics, batteries, water filters, solar panels, medical equipment, and much more are using silver at shocking rates and each application it is used in is not recoverable. All of the silver consumed in industry is thrown away in landfills, not recycled like gold.
The strong demand coming from investors seeking a safe haven is pushing the silver price higher. Silver has been way undervalued for a long time due to suppression tactics by our government, and public unawareness that silver is quality money. People are quickly becoming aware that our dollar is falling fast, and that they need to hedge against inflation with silver coins, silver bars, silver bullion, and silver shares.
For your own safety and the safety of those around you, spread the word to investors who are seeking shelter for their dollars. Staying in dollars right now will kill your financial dreams. If you are in stocks, bonds, cash value policies, or anything denominated in U.S. dollars, you must get your money into silver and gold.
Economist Bob Chapman on Silver and Gold
Silver has a long, long, long way to go to reach it’s historic ratio to the price of gold, which is 15:1. It has historically taken 15 ounces of silver to buy one ounce of gold, and right now that ratio has been floating between 60-70. The gold/silver ratio is way out of wack due to government manipulation of the silver market.
The COMEX short sellers are way over their contract limits, illegally, and they have kept the price artificially low for a long time. The way these short sellers (JP Morgan, HSBC) do this is by borrowing contracts and then short selling them onto the market. Most people who choose to sell short are betting that the market will go down. If it goes down then you take a profit.
The banks that are shorting the COMEX silver contracts are shorting massive amounts of silver, and they are way over their contract limits, illegally. When they flood the market with the massive amounts of silver they are being allowed to short sell, the price must go down to find buyers to fill the orders. This is how they have been manipulating the silver market.
Even though it is illegal, these banks continue to be way over their position limits. This is coming unraveled as we speak, and the COMEX has already proven they do not have the gold they claim to have. The COMEX is close to defaulting when people have asked for physical delivery of their metals.
All it takes is 1/10 of 1% of the U.S. population to buy silver to send the price to the stratosphere. The silver market is so tiny that the smallest increase in demand could send it into price territories never dreamed of before. If you are not invested in silver when this price explosion occurs you will not be able to get into the market. Position yourself now for the greatest bull market in history.
It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your FREE instant download copy of “Why You Should Buy Gold Now” -- created especially for the gold investment newcomer -- by clicking here.
We’ve all seen these cash for gold commercials on television recently, yet few stop to think why gold is suddenly in the spotlight. Many gold investors should be asking the question “will silver outperform gold?” For gold followers, you’ve seen the price of gold increase from $260/oz in 2001 all the way up to $1,170/oz today. The gold rush is on, and smart investors have been buying gold to hedge against inflation.
Gold is a great investment during times of economic uncertainty, but few people are even aware of the reasons why they should be invested in gold. I’m not writing this article to talk about gold though. Silver is what I want to talk about, and that’s because silver is a much better investment. Silver has the potential to return five, ten, or even twenty times the gains compared to gold.
The silver price per ounce today is sitting at $18.60 per ounce. Just 8 years ago the price per ounce of silver was at around $4.00 per ounce. That’s over a 400% increase in price. You may be saying “But, gold had a 400% increase in the past 8 years, so why is silver a better investment?” That’s what I’m here to tell you about.
Silver is much more rare than gold in above ground inventories. There is roughly 5 billion ounces of gold above ground in the world, and most is available for investment purposes. There is less than one billion ounces of silver in the world, and most of that is used in industrial applications.
Silver is mostly depleted as soon as it comes out of the ground. It is used for electronics, solar panels, medical purposes, and many more applications. Silver is consumed and thrown away in to land fills because the price of silver is not high enough to justify recycling it.
Explosion In The Price Of Silver Imminent-Ted Butler
Most of the gold ever mined is still in existence and available today. Most of the silver that has been mined has been consumed and not recoverable. Industry consumes more silver than is mined each year so the levels have been dangerously depleted. Even the USGS said the silver would be fully depleted and extinct by 2020.
Silver really is the new gold if you look at the rarity value, and many experts have stated that the silver price will go anywhere from $100/oz to more than the price of gold. If that is the case, then silver would need to be $1,170/oz. Silver is the investment of a lifetime, and some experts are saying that there has never been as sure of an investment explosion like that of silver.
Some may make the mistake of saying that a metal like silver couldn’t or wouldn’t go that high, but look at the price of rhodium. Just a few years ago the price was at $300/oz and now it is nearly $10,000/oz. It can happen to silver, and there are many other factors that will push the price of silver up.
The COMEX short sellers, who include JPMorgan Chase and two others have been manipulating the price of silver down for many years now. These short sellers have been way over their contract limits in silver, illegally I might add, and at some point in the near future these banks will have to cover their short positions. This illegal action is being stopped, and when the banks are forced to limit their short positions we could see a price move in silver that will take the breath away of even the most bullish investors.
The factors for silver are much more bullish than gold, as is evident in my article. It is important that you be invested in silver bullion, silver coins, silver bars, and Silver Eagles to protect yourself from inflation. Most are not aware of silver’s fundamentals, but once this price explosion happens it will be the investment that CNN talks about every night.
It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your FREE instant download copy of “Why You Should Buy Gold Now” -- created especially for the gold investment newcomer -- by clicking here.
Silver will outperform gold in the coming years. The fundamentals for an explosion in silver far outweigh the fundamentals for an explosion in gold. Both are great investments right now, and will be great for at least the next 5-10 years. Since we have recently hit the second leg up in the precious metals bull market, we have only seen a comparatively small increase in the metals prices.
Silver is set to far outperform gold because silver is more rare than gold above ground. Does this seem a little far fetched? All you have to do is look at the global supply numbers to see what I’m talking about. In 1900, there was approximately 12 billion ounces of mined silver in above ground form.
Due to the usage of silver in industrial applications, that above ground number has dwindled to 1 billion ounces of silver, and only about 350 million of that is available for investment purposes. The staggering consumption of silver for electronics, water filters, military, medical, solar, and many other applications is growing rapidly.
In 1900 there was about 7.5 ounces of silver per person available in the world. Today that number has been reduced to .1 ounces per person.
Since 70% of silver is a by product of base metal mining like copper, zinc, and nickel we are seeing a slow down of mining these base metals due to slow economic growth. This results in less silver coming out of the ground, which is very bullish for the price. We have also seen an increase in the amount of mine closures. Due to a suppressed silver price, mines can’t afford to be profitable.
The 800 year price ratio of silver to gold is around 15:1. This is roughly how much silver it has historically taken to buy one ounce of gold. This 15:1 ratio has been the average for a long time, but today the ratio sits at around 60:1. The ratio is way out of wack, and it is due to many factors including extreme price manipulation by the banks and COMEX to keep the price of silver down.
Silver and gold are in the process of resuming their historical roles as money, and they still have very far to go, and silver will lead the pack!
The U.S. is no longer a holder of silver reserves. When Nixon took us off the gold standard in 1971 he effectively turned our dollar into a fiat currency. Overnight our dollars went from being exchangeable for silver or gold to now being nothing more than paper.
Adrian Douglass-Silver Will Outperform Gold
China, Russia, Arab states, and other countries are currently in the process of diversifying out of dollars and into gold and silver. They are not ignorant to what is happening to the U.S. Dollar. China recently announced that they would legalize public ownership of silver, and they are currently advertising ownership of silver to their citizens on television.
India has recently followed suit by offering silver bars for sale due to overwhelming public interest.
According to the World Gold Counsel, the world has mined around 5 billion ounces of gold to date. About 95% of that gold is still in existence in coin, bullion, jewelry, or some other form.
Silver supplies will truly blow your mind, and after reading this you may wonder why silver is not priced equivalent to gold. According to The Silver Institute and The CPM Group, there is about 250-650 million ounces of gold in above ground form. Since there is 5 billion ounces of gold in existence, you can see that there is easily 7-20 times more gold than silver.
How can this be you might be asking? Well, it’s due to several factors. The main factor is because during the past 20 years industrial demand has consumed almost all of the silver above ground. If we look at the industrial consumption, it shows that we hold less than one year’s mine supply of silver above ground.
So much of our daily lives use silver like electronics, which consume 40% of the silver mined annually. As we enter a time when other countries like China and India are industrializing, the silver price can only go one way, up!
Silver is the greatest electrical conductor of any element, even better than gold. Silver has the highest reflectivity and is used in applications with mirrors. It is used in bearings, batteries, and as a microbial.
Silver is man’s first antibiotic, with many medical applications. In fact, our military uses nano sized silver particles in military clothing for wound antibacterial purposes. It is also used in Tupperware to prevent food spoilage.
Early pioneers used to put a silver dollar in the milk jugs to keep their milk fresh. The applications are endless for silver, and as more and more uses become apparent, it is making it harder to deliver quantities of silver for cheap. Soon the price will have to go much, much higher to fulfill demand.
Silver is used in such tiny quantities by industry that most of the silver used for applications is not recoverable at all. Most of the silver used by industry ends up in a landfill never to be recovered again. A drastic rise in the price will not affect industrial demand.
The industries consuming silver will be forced to adjust to the higher prices, but it won’t be detrimental to most companies consuming silver since the amount they use in each application is miniscule. There is currently no substitute for silver in most of the applications it is used for.
Silver cannot go down in price, not for a sustained period of time anyways. There will be fluctuations in the silver market, but the same goes in every market. When we consume more silver than is mined each year and factor in the current short supply, the price does not have a sustainable downside.
The most bullish factor I think I have heard about silver is what the USGS stated. The United States Geological Society stated that by 2020 silver will be the first element on the periodic table to go extinct. You did not read that incorrectly. I think you could say silver really is the investment of a lifetime.
Never before in the 6000 years of the mining of silver have the fundamentals for the price been so bullish. In January of 2008 silver expert Mike Maloney stated that in the future you will be able to buy a median priced home for 500 ounces of silver. That would be approximately an $8,000 dollar investment for a house.
Investment guru and author of Rich Dad stated that silver was the best investment opportunity he had ever seen.
Do not wait for the masses to start buying silver. Once the mania phase hits the price of silver and gold are going to go bananas. Just to give a few price projections, some experts have quoted that silver needs to be at an inflation adjusted price of $125/ounce. This does not even factor in all of the physical demand factors or any of the other factors I have stated.
Other experts have stated that the silver price should be $250-$1,000/ounce. Still others say that silver should be well above the price of gold. The gold price today is around $1,040 for a one once gold coin. So, a $20 investment in a silver coin, silver bullion coin, American silver eagle, or any form of silver will pay off handsomely in the future.
Even the silver mining companies are set to outperform the gold mining companies. Massive profits can be taken in the gold and silver mining sector if you do a little research for the right companies. The huge gains will come in the penny mining stocks and gold and silver exploration companies. These were by far the best performers during the last bull market from 1972-1980.
Lion Mines is a notable company since the share price went from $.07/share to $380/share from 1972-1980.
I don’t need to calculate the gains for you. Do not make the mistake right now of joining the masses and assuming that since silver is not main stream you should not buy in. Look at the fundamentals I have just presented and make your decision, now!
It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your FREE instant download copy of “Why You Should Buy Gold Now” -- created especially for the gold investment newcomer -- by clicking here.
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