The Silver Price Will Explode!

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.

Will Silver Outperform Gold?

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!

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.

Silver Investing: How To Invest In Silver

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.

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!

When I began investing in gold and silver, I spent many hours researching and trying to educate myself before making a purchase.

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.