Top 10 Reasons To Buy Silver
1. Moving into True Money
Would you convert your labor into depreciating fiat paper or into an appreciating tangible asset with intrinsic value?
Silver offers the opportunity to move
into true money, an actual store of value, with the potential for
substantial gains in future years as its current cycle continues. Protect yourself and your family by acquiring silver with intrinsic value and insulate yourself from the wealth destructive policies of central bankers.
In Mike's words: “Gold and silver have revalued themselves throughout the centuries and called on fiat paper to account for itself.” (Page 202 of Guide to Investing in Gold and Silver)
If history serves as any reference, we are poised to repeat the accounting of the Depression Era and the 70's which put precious metal holder's on top.
2. The Common Man's Gold
The
acquisition of silver is much more attainable for global populations
compared to gold. As silver prices continue to rise, investor’s will
further shift away from real estate, stocks, and bonds.
The affordability of silver is poised to make it "common man's gold" as it begins to make news and involvement becomes widespread.
3. The Ultimate Insurance Policy
Throughout
the last thousand years of history, most episodes of printing have been
followed by pronounced periods of inflation or even extreme cases of
hyper-inflation, either severely destabilizing the nation’s political
stability or culminating in warfare, dictatorships, or a political
collapse.
A
simple glance will quickly reveal that those who capitalized off these
unique periods were holders of monetary metals such as silver. Even if
you believe these possible outcomes are improbable, ownership of
physical silver in the event will provide you the opportunity to not
only protect your wealth but appreciate it significantly. Like an insurance policy, while the event probability is low, when fire strikes the benefits largely outweigh the cost.
At the current silver price
level, the cost of insurance is tremendously cheap in relation to the
wealth it would conserve if history does in fact repeat itself.
4. Silver: Much more than a Monetary Metal - Industrial & Medical Applications
Unlike
gold, silver has hundreds of industrial and medical applications and
its usage is on the rise. Silver’s molecular arrangement and chemical
properties make distinctly unique among earth's elements. In Mike’s
words:
“Of
all the elements, silver is the indispensable metal. It is the most
electronically conducive, thermally conductive, and reflective. Modern
life, as we know it, would not exist without silver.“ (Page 128 of Guide to Investing in Gold and Silver)
In the last two decades alone, usage has
increased substantially to include an array of electronic and digital
products, medical appliances due to its anti-microbial properties, and
even clothing. Product such as cellphones, cameras, laptops, mirrors,
monitors, etc. all contain trace amounts of silver which is never
replenished or returned to stockpiles. As our information age
progresses and silver’s chemical uniqueness is more fully understood,
demand for this irreplaceable metal will only continue to rise.
5. A Dwarfed Physical Market & Vanishing Inventories
While
accessibility to silver may seem abundant in the flood of paper markets
around today, physical markets are actually quite constrained and
limited. Physical silver’s total dollar value is merely 15-20% that of
gold’s while over 70% of this metal is consumed in practical
applications.
The
steady reduction in above ground inventories had been unique to silver
amongst virtually all industrial and precious metals. Above ground
supply is merely a fraction of what it was when silver hit its all-time
high in 1980. Supply continues to be limited as applications in a broad
range of fields continue to grow.
6. Uncertainties in Future Supply
The
majority of the world’s silver comes from nations marked with political
turmoil, labor unrest, and undeveloped economies. Mexico and Peru
account for the largest share of production, both of which have fragile
political systems and primitive infrastructures to accommodate
significant improvements in production.
Several
Southeast Asian nations are also included in this list, and present
similar issues with regard to the consistency of supply. Geopolitical
instability can quickly induce nationalizations (most recently in
Bolivia), labor strikes , or poor infrastructures (accounts for high
rates of flooding, fires, engineering mishaps, etc.) which can be have
significant strains on supply.
7. Emerging World Demand
China
and India represent two behemoth markets where populations have shown a
tremendous appetite for gold and silver. An awakening of emerging
market investment demand will contribute to a new demand dynamic for
physical silver bullion. Supportive of the monetary aspects are some of the largest untapped markets for consumer electronic and industrial usages. Within the next decades, demand for appliances and technologies which require silver from developing nations is set to rise.
8. End of Manipulation
The
most evident form of pricing manipulation on the silver front occurs
through the derivative futures contracts traded at the COMEX. The
amount of ounces traded on an average day typically exceeds the ounces
of investment grade silver available by several factors. In the
interview below, Mike provides us with some insight on the nature of
manipulation:
9. The Paper Funds Exposed
While
futures pricing manipulation gives institutional banks a means for
price suppression, the ETFs and other paper derivatives have now
involved the public in these mechanisms. These instruments funnel
demand away from what would be geared as deliverable silver and into
non-redeemable paper in the form of a prospectus or stock certificate.
It
is not coincidental that over the last decade, dozens of ETFs, pools,
certificates, etc. which have emerged are now being marketed for their
accessibility and convenience to the retail investor. Make no mistake,
these funds are merely paper and the
ETF campaign has been largely successful in placing millions of novice
investors in funds they truly do not understand. Therefore, acquiring tangible metals and truly protecting yourself is never more than a few clicks away (See How to Buy Silver Online)
10. Gold to Silver Ratio
Finally,
the most enduring and lasting indicator of suppression has been the
gold to silver ratio. While this ratio has historically oscillated
throughout the last 2000 years, it has always revert back to its
historical average of 12 to 1. Consider the tremendous upside
potential for a silver investor purchasing silver with the ratio at
these levels. The current affordability of silver makes it one of the
most undervalued assets in recent history.
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