Silver Investing

Silver is the best investment

The National Inflation Association says Silver is the best investment.

In our opinion, investing into silver is the only sure way to tremendously increase your purchasing power over the next ten years.

Throughout world history, only ten times more silver has been mined than gold. If you go back about 1,000 years ago between the years 1000 and 1250, gold was worth ten times more than silver worldwide. From year 1250 to 1792, the gold to silver ratio slowly increased from 10 to 15 and the Coinage Act of 1792 officially defined a gold to silver ratio of 15. The ratio remained at 15 until forty-two years later when the ratio was increased in 1834 to 16, where it remained until silver was demonetized in 1873.

The gold to silver ratio remained between 10 and 16 for 873 years! It is only over the past 100 years that the gold to silver ratio has averaged 50. History will look back at the artificially high gold to silver ratio of the past century as an anomaly, caused by the dollar bubble and the world being deceived into believing that fiat currencies are real money, when in fact they’re all an illusion. Next decade, the fiat currency experiment will end badly in a currency crisis. The wealthiest people will be those who bought silver today and were smart enough to research and pick the best silver mining stocks.

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While the vast majority of the gold ever produced remains sitting in vaults, 95% of the silver produced has been consumed by industry for thousands of applications in such tiny amounts that most of it will never be recycled and seen on the market again. Nobody knows the exact above ground supply of silver today, but most likely it is somewhere in the neighborhood of 1 billion ounces. That’s a total worldwide market value of only $17.4 billion, when the world has over $7 trillion in foreign currency reserves, mostly in fiat currencies that they will need to diversify out of due to rampant inflation.

Besides the fact that the world has been ignoring the monetary value of silver, silver prices are artificially low due to a large concentrated naked short position. It’s not a coincidence that the day silver reached its multi-decade high of over $21 per ounce in March of 2008, was the same day Bear Stearns failed. Bear Stearns was a holder of a massive short position in silver. In our opinion, this was likely a naked short position because there is nobody in the world who owns such a large amount of silver for Bear Stearns to have borrowed.

The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position. Because the silver market is so small and tightly held, if Bear Stearns was forced to cover their short position, silver prices could’ve potentially rose to $50 per ounce or higher overnight. The world would’ve seen how economically unstable our country is and confidence in the U.S. dollar would’ve rapidly deteriorated. JP Morgan still holds the silver short position they inherited from Bear Stearns. The concentrated naked short position in silver today is the largest short position in the history of all commodities, as a percentage of its market size. Eventually, JP Morgan will have to cover this short position or it could jeopardize their existence.

The best evidence that the short position in silver is naked and not backed by real silver, is the differential between what silver trades for on the Comex and what real people are willing to pay for physical silver on eBay. Every hour on eBay, there are dozens of one ounce silver coins selling for approximately $25. That’s about a 43% premium over the current spot price of silver. With so much demand for physical silver, we doubt the silver shorts in the paper market will be able to manipulate prices downward for much longer. A major short squeeze could be right around the corner and silver could take off in a way that shocks even those who are most bullish.

The Best Ways to Buy Silver

Mike Maloney discusses the best ways to buy silver in the following video.

Mike Maloney: GLD SLV ETFs = Potential Scams

I like what he says, “If you can’t hold it, you don’t own it.”

OWNx is a great program to dollar cost average your silver purchases. With OWNx, you can automatically save in silver for as little as $25 a week or $50 a month.

See: Dollar Cost Averaging with OWNx

Austrian Silver Vienna Philharmonic

Austrian Silver Vienna Philharmonic

Austrian Silver Vienna Philharmonic

One of my favorite silver bullion coins is the Austrian Silver Vienna Philharmonic produced by the Austrian Mint. Beginning in 2008, it is now the highest minted and most well-known silver bullion coin from Europe. The coin is legal tender in Austria with a face value of 1.50 Euros. It weighs exactly 1 troy ounce of .999 fine silver.

The design created by Thomas Pesendorfer to be used for a gold commemorative coin that was first issued in 1989. The Austrian Mint introduced the silver version of the coin in 2008. The design was unchanged and has remained the same each year as of 2015.

Obverse: The obverse design features a pipe organ from within the Musikverein, a concert hall in the Innere Stadt borough of Vienna. This is where the actual Vienna Philharmonic Orchestra plays its music. The German words “REPUBLIK ÖSTERREICH” (Republic of Austria) and “1 UNZE FEINSILBER” (1 ounce pure silver) are also minted on the obverse.

Reverse: The reverse design features an array of musical instruments such as the harp, violin, cello, flute, bassoon, and French horn. The words “WIENER PHILHARMONIKER” (Vienna Philharmonic) and “SILBER” (Silver) are also inscribed.

This is one of the many silver bullion coins available for delivery from OWNx.

OWNx.com

Although also minted in gold, the market overwhelmingly chooses official silver coins over gold. For one, they are more affordable for average buyers and easily converted to fiat currency if needed.  This 1 oz Silver Philharmonic Coin is among the world’s most popular, with over 40 million Silver Philharmonics sold over a recent three year time span alone.

Why Silver is the Place to Be

silver kilo bar

In case you don’t know the main reason why silver is the place to be, here’s a little excerpt from a Ted Butler speech.

Cambridge House Phoenix Silver Summit 2010
Silver Review and Outlook
February 4, 2010
Theodore Butler

“Last year, I observed silver’s past, or the time period covering thousands of years up until about 5 years ago. I tried to describe how silver was always a highly desired precious metal, valued for its beauty and value in jewelry and ornaments and as money, much like its fellow precious metal gold. And, starting 100 to 150 years ago, how silver evolved into a vital and strategic industrial commodity. This transformation of silver into a modern industrial material was predicated upon its physical and chemical properties. These properties included it being the best conductor of electricity, the best transfer agent of heat, the best reflector of light, the most efficient photographic chemical and the most versatile biocide. In fact, silver is used in more industrial applications than any other metal.

Because of the wide range of uses in which silver is the preferred ingredient, it began to be industrially consumed in prodigious quantities. So great was the industrial consumption of silver, that the world used more, starting around the beginning of World War II, than it could produce from mining and recycling. That over-consumption mandated that previously produced silver, in the form of world inventories, be consumed, in addition to mining and recycling. The net result was that over 60 or 70 years, the above ground inventories of silver were depleted by 90% or more. In other words, we have only 10% in world silver bullion inventories of what we had back 70 years ago. We had 10 billion ounces of silver bullion inventories then; now we have 1 billion ounces remaining.

At the same time, gold inventories grew dramatically over the past 70 years, as gold’s industrial consumption did not develop like silver’s did, mainly because gold was and is one of the most expensive materials in the world. It’s not that gold didn’t have its own special physical and chemical properties; it’s just that you don’t use an expensive material unless you have no other choice. The bottom line, silver’s inventories were used up; gold’s inventories grew

The net result of this was one of the most incredible situations ever witnessed in world history, namely, that a comparable commodity that was rarer than another commodity could be much cheaper than the more plentiful commodity. In above ground bullion inventories, gold is more plentiful than silver, yet silver is less than 1.5% the price of gold. Common sense should tell you that such a relationship is absurd and cannot last indefinitely. Investment sense should also tell you that price relationship is absurd and unlikely to last, creating the best reason to buy underpriced silver.

Finally, despite the ease by which these relative gold/silver world inventory statistics can be verified, less than one-tenth of one percent of the world’s citizens are aware of the fact that silver is rarer than gold. I would guess that a good percent of those who do know, are in this room today.”

So . . . . if you knew something that only “one-tenth of one percent of the world’s citizens are aware of – the fact that silver is rarer than gold” wouldn’t it be a good idea to be in a business that should benefit as more people learn about silver? Especially since it already is.

Help us spread the word about silver while you get Silver Eagles in the mail.

Dollar Cost Averaging with OWNx

OWNx is a great program to dollar cost average your silver purchases. With OWNx, you can automatically save in silver for as little as $25 a week or $50 a month.

I like the dollar cost averaging approach of accumulating silver by investing equal monetary amounts regularly and periodically over specific time periods (such as $50 monthly). By doing so, more ounces of silver are purchased when prices are low and fewer ounces are purchased when prices are high. The point of this is to lower the total average cost per ounce of silver, giving you a lower overall cost for the silver purchased over time.

Once you have signed up for a FREE OWNx account, click “Start Saving” and you will be directed to the signup wizard. Fill in the required information. After you have selected a frequency and amount, you simply select the date you would like to begin saving.

You can now accumulate .999 pure physical silver at a ~7.8% premium over the OWNx Base Price after your instant rebate. Your effective premium could easily be reduced further with the OWNx Rewards Program where you can earn a rebate for sharing OWNx with others.

Your .999 pure physical silver is allocated and titled in your name, insured 100% and stored at First State Depository located in Delaware. Silver stored at the depository will be assessed a monthly storage cost of 0.05% (0.60%/year). This cost will be deducted from your OWNx account automatically each month.

After you have saved at least 20 ounces, you may choose to exchange them for various deliverable forms such as 1-oz. rounds, 10-oz. bars, 100-oz. bars or full 1000-oz. bars and have it delivered to you. An exchange cost is applied when taking delivery which includes fabrication, handling, shipping and insurance.

Protecting the purchasing power of your savings is important! Today, the purchasing power of all forms of paper wealth, including your money, is being threatened. The global financial crisis has exposed the flaws in the most dangerous monetary experiment ever undertaken.

Since 1971, when the United States cut its final tie to gold as a means to back our money, we have been living in a world dominated by paper money. The problem is paper money (also known as “fiat” money) derives its purchasing power by nothing more than confidence in the ability of each nation to maintain a “prudent fiscal policy,” i.e. refraining from the temptation to create too much money and credit.

Anybody that has not been living under a rock in recent years knows that the Federal Reserve has been debasing our currency at an alarming rate as it has printed more and more fiat money and expanded the credit of the U.S. to mind-boggling heights.

Time is running out for the U.S. economy and your should begin to protect your savings from this debasement. Never in the history of mankind has any economic system survived the kind of debasement governments around the world are doing now with our money.

Thoughts on 90% Silver Coins vs. Silver Bullion

While the accumulation of 90% “junk” silver is popular among many people, this guy in these video’s presents some interesting thoughts to consider as we try to protect ourselves with silver bullion.

Apart from the debate over 90% silver coins vs. bullion silver, I thought it important to note he talks about the changes made in laws (Financial Regulatory Reform Bill and Healthcare Reform Bill) making coin dealers fall into the same category as banks and other financial institutions.

It would seem to me the government is preparing to close the doors on silver investors from accumulating government issued silver coins. If we’re going to accumulate silver eagles or other denominated 90% silver coins, it might be best to accumulate those coins before January 1, 2012 when coin dealers will then be required by law to report to the IRS your silver purchases.

Hello? Can you see the door closing?

Since January 1, 2012, the federal government has the authority to implement price controls on what coin dealers are allowed to give you for your denominated silver coins. It seems to me this is a pretty good argument for not accumulating ONLY denominated silver coins, but to also own silver rounds and silver bars.

Of course, I don’t know what the federal government might do in the future. These ideas are just something else to think about.

Silver Shortages

THE SILVER SHORTAGE WILL COME
By Israel Friedman

(Israel Friedman is a friend and mentor to Theodore Butler. He has followed silver for many decades. He has written articles for us in the past. Investment Rarities does not necessarily endorse these views.)

Based on the supply and demand situation of silver, it`s only a question of time when a silver shortage will come. Nobody can predict exactly when this is going to happen, but we have more and more signs that those who control the price of silver are sweating to balance the supply.

The biggest question I have is, will the shorts be successful to cover their short position on time? Right now the CFTC seems to want to force all the manipulators to get in line by making them obey new rules of position limits, but I feel that the banks who are the big shorts will be exempt. Mr. Butler thinks that the CFTC will do the right thing, but I am skeptical. We argue about this a lot, as we both have strong opinions.

If the banks will not be forced to cover their short positions, only a true shortage in silver will bring the right price. Be prepared for that to happen. How much will silver be worth in a shortage situation? It`s tricky to calculate, because a real shortage has never happened in silver history. But it is how you must think. My own thoughts go back to what some things cost during and after World War II in Europe. When there is not enough of something is when you see real crazy prices.

So I will give you my calculation. It will be a gradual explosion of prices and slowly the users and the new investors will eat up the world visible silver, which today is around 500 million ounces. In my calculation the first 100 million ounces of visible silver will disappear at a price of $60 to $100 an ounce. The second 100 million ounces will disappear by $250, and the third 100 million ounces will disappear between $250 and the price of gold ounce for ounce.

We will be left with 200 million ounces of silver which the owners will be not taking profits on at any price. The bullion in private hands I calculate will be the first to take profits, but Silver Eagle holders will hold for the long run. I still believe that Silver Eagles will do the best investment-wise and I will not be surprised that at one point the Eagle price will trade much higher than the price of silver in a bubble mania.

I am a fanatic silver believer and what I write is only my private belief. There are not many believers in silver. Just look at CNBC, the newspapers, other media, and gold investors. Hardly ever a good word on silver. Silver for them is a forgotten metal. One day they will be shocked when the shortage of silver will come and the price will go up and then gold will be a forgotten sister. There is more gold in the world than silver, so parity in prices is a must.

I think Ted Butler spoke the truth in a recent speech he gave: “The supply/demand set up in silver, which has evolved over an incredibly long period of time, has been one continuous process promising to culminate in an explosion in price at some point. Quite simply, we are rapidly approaching that defining moment when there just won’t be enough physical material to go around at anything but rapidly escalating prices. Those escalating prices will encourage and drive others, including industrial consumers, to enter what should become a buying frenzy. Superimpose upon that the sudden destruction of a decades-old downward price manipulation and you have all the necessary ingredients for a price event that will be referred to forever.”

* * *

Get all the silver you can as fast as you can. Silver owners could be the wealthiest members of society when this meltdown continues. Remember “Wealth is not destroyed it is merely transferred”. What side of the transfer do YOU want to be on?

Silver Bullion Offers a Lot of Financial Security

Investment in Silver Bullion Offers a Lot of Financial Security For the Future

Silver although not as popular as gold has carved its own place in the investment market. These days more and more financial advisors are getting their clients to invest in silver bullion because they feel that this will offer them a lot of financial security in the near future. Economists of the world believe that during troubled economic times, most countries, government, and people start looking back at traditional values and this is where investment in silver and gold begins.

The world has barely started to breathe a little since the recession but the highly volatile market trends have not changed much. It has been seen in the recent past that strong currencies like the U.S. dollar and the British Pound have started to lose value. The British Pound has lost as much as 30% of its actual value against currencies like Japanese Yen. At the same time, the United States is trying to print green dough’s in order to find its way out of the recession crisis. This method of saving bankrupt companies has increased the fear factor in the average citizen because another bout of recession can end it all for the US.

This is one of the reasons why people should start investing in stronger portfolios like silver. Silver bullion is not just here to stay but silver in itself is a life saver. It will help in protecting you from any financial insecurity in the coming years and also help in protecting your underlying wealth. At least, you will have something that can be traded – you can’t trade stocks during economic crisis.

The stock market can crash but gold and silver are resources that will not lose their value. One of the best forms of silver investment is through bullion. The best place to buy silver bullion from is the mints. You can invest in silver rounds and bars, in 100-oz silver bars, and much more. When you are investing in silver bullion, check for.999+, purity in the bars. Silver bars are available in several weights but the most common are:

– 1 Troy Ounce
– 5 Troy Ounce
– 10 Troy Ounce
– 100 Troy Ounce
– 5 Gram
– 10 Gram
– ¼ Troy Ounce
– ½ Troy Ounce

These silver bars are also available in different sizes and thickness as well and can vary from 18.3mm in length to 150mm. The width can vary from 30.3mm to 76mm while the thickness will vary from 1.12mm to 26.9mm. The purity will remain.999 but this is something that you should always check before investing. Any silver bullion having purity of less than.999 will have much lesser return on investment value.

There are several other aspects to consider if you are planning to invest in silver bullion like collecting information in the market performance in the last decade, types of bullion available, storage for silver bullion, transporting it and much more. The more informed you are, the better silver bullion investment you can make.

Article written by Kelly Hunter
Kelly Hunter owns and operates Silver Bullion Bars and writes about Silver Bullion Bars

Article Source: http://EzineArticles.com/?expert=Kelly_Hunter


Earn Silver

Keeping Your Investments in Silver Safe

If you’re wanting to purchase Silver, always ask yourself why are you buying Bullion? For what purpose? Is it for your collection or for investment purposes? Be sure you know what kind of silver you want to buy, in coin form, bar form or in paper form (stocks, ETFs, exchanges etc.) When purchasing silver, you need to know lot of things regarding Bullion.

maples

Here are some safe ways or steps if you want to purchase physical Bullion (coins or bars):

  • First figure out what kind of Silver Bullion you want to purchase, coins or the bars.
  • Know your budget when you purchase silver.
  • Have a safe place to store your silver.
  • Always bear in mind the current price of silver and compare the price to other dealers.
  • Go around or shop for cheapest dealers in your local area.
  • After you shop around, go to online shopping so you can compare the different prices of silver.
  • You can also purchase silver at auction or from national mints.
  • If you purchase from other dealers like jeweler or silver dealers, be sure they have reputable record.

If you want to purchase silver, the best deal you can get is the wholesale price or as close to spot price as possible. As we all know, the retail price is different from the wholesale price.

When investing in silver, most wealthy people who can afford it, pay the wholesale price rather than the retail price. They will have a larger profit when they purchase Silver Bullion at wholesale prices. Most small dealers sell silver at retail prices in order for them to have the bigger profit.

So if you are wealthy, go to the direct supplier or dealer of silver so you can get a cheaper price. The price of silver changes everyday. When there is an economic crisis, the price of silver tends to go up. Silver as an investment can be very profitable business, BUT only if you know what you are doing.

When you want to purchase Bullion for your collection, you don’t need to purchase a lot. Just be sure you know the current price of silver and do go shop around in order to get the lowest or cheapest price.

Online shopping is also convenient in time. You can go shopping through the net in your spare time. The internet is open 24/7 and you can shop through different kinds of website regarding silver and other precious metals. You can also compare the prices easily since some websites of silver dealers have the price posted on their site.

Always be alert of fraud on the internet. Be careful and be safe in shopping online. If you know of some reputable silver site, then go and have a look at their inventory.

Which is Better, Silver or Gold Investment

As people become more financially saavy, more and more are looking at expanding their financial portfolios with investments in metals. Among all the precious metals, however, gold and silver are the ones which have maintained their appeal over the years. Gold has long been proven to be a very stable asset with very great potential of increasing your wealth. Silver, on the other hand, is the world’s second most important commodity, next to oil. But, which is better – silver or gold investment?

gold and silver

According to the International Monetary Fund (IMF), the economic rollercoaster ride is expected to continue in the next few years. With that said, it is extremely important for all investors to first understand the current market conditions before making investments.

Investors who have no confidence in Dollars or Euros can find refuge in silver or gold investment. These two metals have survived the test of time and hence, are both generally safe investments for your wealth. But, of course, there are benefits and drawbacks to every investment project, and these two precious metals are certainly no exception.

The Pros and Cons of Gold Investment

Gold is the only money that has maintained a very strong position in the 5,000-year history of its utilization by mankind. This metal has proven in a lot of ways that it is the safest investment in times of economic turmoil. And since it is considered a universal currency, gold can be traded anytime and anywhere in the world. Here are some other facts that make gold a good investment.

  • Gold is a very stable asset.
  • Gold internationally recognized and valued.
  • Gold offers a variety of investment opportunities.
  • Gold is not affected by inflation.
  • Gold is almost always highly in demand.
  • Gold is durable.

Although gold is preferred by most investors who are concerned with collapsing currencies, it is not without risks. Here are the two major cons of gold investment.

  1. Gold is highly at risk of loss, theft or confiscation.
  2. Gold needs a highly secure storage place.

The Pros and Cons of Silver Investment

Silver is one of the most useful commodities in the world. It has innumerable uses in various industries because it is electrically conductive and thermally resistant. The benefits of silver are pretty much similar to the benefits of gold. Here are some of them.

  • Silver is a relatively inexpensive metal.
  • Silver is not generally affected by inflation, just like gold.
  • Silver is highly in demand in industries like jewelry, electronics, coinage, imaging, water purification, etc.

Adding silver to your investment portfolio diversifies your assets and adds protection against the risks of other financial instruments. But, just like gold, silver has its own set of disadvantages.

  • Silver is subject to tax due to its rarity and wide use in different industries.
  • Similar to gold, silver is at risk of being stolen.
  • Silver needs storage.
  • Silver takes longer to liquidate.

Fiat currencies have weakened in recent years and have lost most of their buying power. Before paper money becomes a safe investment again, it has to recover its genuine value first. Meanwhile, investors can have alternatives in the form of silver or gold investment.

When money is fast becoming worthless, investors are better off going for real money, just like gold and silver.

I like buying silver and gold on a cost-averaging monthly plan with hardly any effort on my part.  Once you establish an account with OWNx and choose your purchasing plan, BOOM it then happens for you automatically.  Pretty cool.

OWNx.com

Information About OWNx

I like to dollar cost average my silver purchases using a program called OWNx.

OWNx makes it possible for small and medium sized investors to save or invest in real silver just like the big investment houses and governments do. If you are looking for an easy way to accumulate some silver, you might want to take a look at this. Here is how it works.

You will first go the OWNx website and set up your free account. Then, choose the amount of money you would like to invest automatically each week or month (or, you can make one time investments if you prefer).

Lets say you have $100 a month you would like to invest in silver.

At the beginning of each monthly period, $100 is automatically deducted from your account and used to buy $100 of real physical silver (or gold) at whatever the price of silver is that day.  Your silver is stored, it is allocated and titled in your name(which means its legally yours), 100% insured by Lloyds of London and stored in the First State Depository of Delaware.

silver bullionOnce you have at least 20 ounces of silver in your OWNx account, you can then have it delivered to your home in one ounce coins, ten ounce bars, one hundred ounce bars or even one thousand ounce bars!

Another cool thing about OWNx is that they have created a “Silver Rewards” program. When you create your account, you get your own unique silver rewards link. All you have to do is pass your silver rewards link on to other people who are smart and know the value of and are interested in investing in silver. When that person signs up and creates an account, you are rewarded with up to 25% of their premium over the OWNx Base Price or Live Price.

So say you give your special silver link to me and I then set up an account and start investing $100 every month. Each month, you will receive up to 25% of the premium I am charged. That 25% of the premium is automatically added to your account in the form of silver. This is awesome. Get 5-10 of your friends investing in silver every month(which is a very smart thing to do) and you will be earning a lot of free silver.

This program is really the best and most affordable way to save and invest in silver for small to average size investors. Visit the following link now and become a silver saver.

OWNx.com

America the Beautiful Quarters 2016 Silver Proof Set

This is a beautiful set of 90% silver quarter proofs.

U.S. Mint proof coins feature sharp relief and a mirror–like background. Their frosted, sculpted foregrounds give them an exceptional cameo effect. Proof blanks are specially treated, polished and cleaned to ensure high quality strikes. The blanks are then fed into presses fitted with specially polished dies and struck at least twice to ensure sharp relief. The coins are then packaged in a protective lens to showcase and maintain their exceptional finish.

The 2016 edition of the America the Beautiful Quarters Silver Proof Set features the seventh annual release of five quarters in the series.

Each coin in this series features a common obverse (heads) with the 1932 portrait of George Washington by John Flanagan, restored to bring out subtle details and the beauty of the original model. Inscriptions are “UNITED STATES OF AMERICA,” “LIBERTY,” “IN GOD WE TRUST” and “QUARTER DOLLAR.”

The 2016 reverse (tails) of these coins honor the sites below with the following designs:

  • Shawnee National Forest in Illinois
  • Cumberland Gap National Historic Park in Kentucky:
  • Harpers Ferry National Historical Park in West Virginia
  • Theodore Roosevelt National Park in North Dakota
  • Fort Moultrie at Fort Sumter National Monument in South Carolina

 

Jumping at Opportunities

Where Is All Your Money Going?

You earn it… you save it… and you spend less of it.

Where does all your money go?

Are you tired of huge Corporations & the Government getting all the Money, while You, Your Family & Friends Struggle?

Buy Silver – Earn Silver
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Buying Assets on Sale

The Game of Monopoly is the textbook or blueprint that provides individuals with a plan to become financially free. Since most people only see Monopoly as a game, they may miss many of the real life lessons it can teach. For example, what does Monopoly teach you about your salary and money? The first space in Monopoly says, “Collect $200 salary as you pass Go”. The question is, “how should you view this money and what should you do with it?”

More on Buying Assets on Sale

U.S. Mint Ups Allocation of Silver Eagle Coins

Silver Eagle

Silver EagleThe U.S. Mint has increased its weekly allocation of American Eagle silver bullion coins. “The U.S. Mint has 2,204,500 ounces of American Eagle silver to allocate this week,” says a memo from the Mint. Previously, the Mint had been allocating 1 million ounces weekly, an official says.

By Allen Sykora of Kitco News; asykora@kitco.com

Don’t Fall for those “We Buy Gold And Silver” ads

Have you been paying attention lately to what’s happening with your money?

Those “We Buy Gold And Silver” commercials have been dropping MAJOR clues about what’s going on in the economy and while many haven’t caught on… many others have…

American Eagle Silver Coins
American Eagle Silver Coins

Those juice, pills, vitamins, or latest travel club programs are struggling. People are not trying to figure out how to spend their money on stuff… they are trying to figure out how to get more money and protect what money they have. That’s why people are canceling their auto-ship for all those other products… That’s why nobody is buying $40 bottles of juice.

Do you want to earn REAL MONEY and protect your wealth?
Buy Silver

Silver Recycling Volumes Forecast to Stagnate Over The Next Three Years

(September 9, 2015 – Washington, D.C.) The Silver Institute today released “Silver Scrap: The Forgotten Fundamental,” a report produced by Metals Focus, the London-based independent precious metals research consultancy, on behalf of the Silver Institute. The study provides detailed information on recycling broken down by region and by five sectors: industrial end uses, photography, jewelry, silverware and coins. This analysis then forms the bedrock for the forecast in scrap volumes out to 2017 and how those volumes might vary with price.

Highlights from the report include:

  • Silver recycling is projected to decline to 178.0 Moz (5,536t) by 2017. This is 14% lower than the 2011 peak, as growth is only expected to average 3% a year, even if prices rally to over $20. This outlook is based on further losses in photographic scrap, a depleted pool of near-market silverware and a limited response from most industrial end-uses.
  • The study found that scrap from industrial sources is the largest segment, accounting for around half the total last year. A key finding was the low level of recovery from the vast majority of end-uses, as highly fragmented ownership and low silver contents often make recovery uneconomic.  The main exception is the substantial and growing volumes coming from ethylene oxide (EO) catalysts.
  • Silverware is the second biggest source of silver scrap supply, with an 18% share of the 2014 total. This large slice was mainly ascribed to a sizable pool of product and a comparatively high value per piece.  By contrast, silver jewelry recycling is modest, despite higher consumption today, as consumers appear to be content to hold on to a still fashionable metal and resale is less valuable.
  • The report notes that photographic scrap remains in marked structural decline as a lagged result of the digitally-led fall in its fabrication since a peak in the late 1990s. However, still sizable volumes of recycling of old x-rays helped this sector achieve 16% of the 2014 scrap total.
  • The West, in particular North America, dominates recycling today, with 53% of last year’s total. Chinese scrap was, however, noted to be growing fast, with its share on target for almost 20% by 2017, largely as a result of gains in industrial recycling.
  • The report isolates four main drivers of silver recycling: the silver price; the scale of a products’ stocks; the degree to which ownership is fragmented and, lastly, environmental legislation in conjunction with its enforcement and voluntary compliance.

“The report illustrates the fact that one of the major contributors to the silver supply complex, scrap supply, has been shrinking, and is forecast to grow only modestly in the near term, further underscoring the strong fundamentals of the silver market,” stated Michael DiRienzo, Executive Director of the Silver Institute.

The report can be downloaded free of charge at: Silver Scrap:  The Forgotten Fundamental Report

Why Silver May Be A Golden Investment

Silver is a wonderful way to put your money in precious metals. This investment does not demand loads of money and you can get the strength and steadiness that comes along with precious metals.

You might want to search for dealers or firms providing online trading of silver. The online trading firm/dealer must have a functionally simple website and the web pages must be promptly downloaded. You can inform the online trading dealer the amount of silver bullion you want to purchase. silver barBullion is the basic product traded in the precious metals market. The unit involved is ounces. You can buy small bars of bullion by one ounce or bigger size bars at 10-15 ounces per bar depending on their size. The online dealer buys the silver and ships it to your destination.

Many dealers in online trading also handle deals that involve large transactions. You can do silver trade with them only if you can invest a good amount of money. By adding precious metals particularly silver to your investment portfolio of stocks, mutual funds etc, an investor can add a real asset to the his investment mix. This enhances the diversification scale, thus reducing the risks caused by fluctuations in any asset kind.

Silver is the most abundant and most inexpensive of the precious metals. Silver is very malleable, corrosion resistant, good reflector of light and is matchless conductors of heat and electricity. Silver plays an important part in your financial planning, as it is an effective investment for an average investor.

Silver has striking demand embedded in segments as varied as imaging, nanotechnology, electronics, jewelry, coins, superconductivity and water purification. Thus, silver has crossed the mark of a precious metal but is now an artistic metal and an industrial metal. Silver is vital metal that helps to improve the quality of our lives.

The value of silver may fluctuate but it has an inherent value that is unchallengeable and enduring. Moreover, between 1970 and 1980, the U.S. dollar lost more than half of its value, while silver prices rose nearly five times.  The economic factors that influence the price of precious metals are different from the factors that decide the price of other most common financial assets. Thus the independent change of precious metals graphs reduces overall volatility of the portfolio and maintains balance.

The dollar is declining and its acquisition power has gradually weakened over time and is anticipated to continue to do so. Thus the rise in online trading of silver can generally impart a hedge against inflation. As the economies swing between prices rises, recession and extension, the silver metals prove to be a sound investment. Many experts of investment believe that 15-20% of assets must be secured in silver investment.

Online trading of silver also gives you a sense of possession as you have the ownership or unswerving charge of their assets as purchasing physical bullion has a good focus. Online trading commissions on buying and selling bullion are minimal. Moreover, silver bullion bars are highly liquid in online transactions.

So don’t loose the golden chance in online trading opportunities of silver investment, as it’ll yield high returns.

The Top Five Morgan Silver Dollars

Why waste everyone’s time? Let’s skip the appetizers and get to the meaty stuff right now: The Morgan silver dollars poised to increase the most in value in the years ahead are the 1895, 1892-CC, 1894, 1878-CC, and the 1883-CC. Pretty bold prediction, eh? At this point, the reader now has three options: (1) Stop reading and act upon this information, (2) Stop reading and get on with life, or (3) Continue on, evaluate the analytical approach to identify the “Top Five” Morgan dollars, and then implement a variation of (1) or (2) above. If you’ve gotten this far, we encourage you to continue on with option (3).

First, a little background info on the Morgan silver dollar…

Morgan Silver Dollar
Photo credit: celticpixl / Foter / CC BY-SA

The Morgan silver dollar is today one of the most popular of all collector coins. First minted in 1878 following the passage of the Bland-Alison Act, the new dollar was named after its designer, George T. Morgan. Political pressure by powerful silver mining companies, in a gambit to stabilize the price of their commodity at artificially high levels, created the impetus driving the legislative action. Bland-Alison led to the overproduction of silver dollars, resulting in millions of these unused “cartwheels” languishing in bank and Treasury vaults. Indeed, few coins have ever been released under more dubious circumstances than Morgan silver dollars. Minting continued until 1904, and then again for one more year in 1921, when the series finally came to a close.

For decades thereafter, Morgan dollars were largely snubbed by hobbyists. Many dates, including those in mint state condition, could be obtained for as little as $1.00. This situation shifted dramatically in 1962, when the US government began selling original 1000-piece silver dollar Treasury bags to the public at face value. Stories of rare dollar finds circulated widely, touching off a veritable Morgan mania. Within a matter of months, all but a small fraction of the federally owned coins were transferred from government vaults to private hands, consequently expanding the Morgan dollar collector base far beyond anything seen previously.

Since then, Morgan silver dollars have proudly perched themselves atop the catbird seat of the numismatic world. Their physical size, availability, beauty, and historical significance have consistently attracted herds of new buyers. Numerous boom-turned-bust cycles have come and gone, sometimes driven by pure speculative motives, but from a long-term perspective, most Morgan dollar prices have trended somewhat positive.

Unlike some controversial promoters in the past, I do not propose purchasing Morgan silver dollars simply as investment vehicles. However, for collectors hoping to satisfy their numismatic yearnings AND acquire coins destined to be worth substantially more in the future, Morgan dollars do present a few opportunities. As noted above, as a whole, Morgans have gained moderately in value over the years. The crucial challenge, then, is to identify which members of this series have enjoyed the best growth patterns in the past. The underlying logic is clear: coins that have demonstrated the strongest gains over a long period of time are the coins best positioned to show similar price advancements with the continued passage of time.

In order to measure past performance and thus visualize Morgans most likely headed toward a bullish future, I developed a systematic approach. First, I researched individual Morgan dollar retail prices as they existed in 1950, for a broad range of conditions, and entered this data on a computer spreadsheet. Moving forward in time, values from the years 1980, 1995, and 2000 were likewise recorded. Finally, estimated selling prices in 2005 were juxtaposed with counterpart data from those earlier years. Because grading terminology has evolved over the 55 year period, certain assumptions were made to progressively track price movements throughout the time spectrum (e.g. an “Uncirculated” value in 1950 is equivalent to the “MS-60” of today).

For each date and condition, compounded annual return rates were computed from 1950 to 2005. [Editorial note: compounded annual return rate is the accepted yardstick for comparing investment performance. Of course, coins do not grow at a guaranteed uniform rate, such as bonds do, but if a coin is purchased at a certain price, and that price is compared with the value of the coin at some later date, the compounded annual return rate can be calculated for the time period in between]. Return rate computations were made from 1980 to 2005, 1995 to 2005, and 2000 to 2005. For each Morgan dollar, the data was placed in tabular format. Next, I calculated a “composite” score for each date by averaging all the compounded return rates computed for that date. I then ranked all the “composite” scores. The Morgan silver dollars with the highest scores are as follows:

Date: Score:
1895 11.37
1892-CC 10.54
1894 10.43
1878-CC 10.28
1883-CC 10.25

So, it would appear, based on past performance over a period of 55 years, the 1895 is the Morgan silver dollar with the best hope of appreciating significantly in the years ahead, followed by the 1892-CC, 1894, 1878-CC, and 1883-CC. Not surprisingly, dollars of the Carson City Mint occupy 13 of the top 16 positions, thanks to persistent collectors scrambling for bona fide artifacts of the romantic American West. On the opposite end of the rankings, Morgan silver dollars having the bleakest long term prospects include the 1898, 1899-O, 1884, and the 1888-O, followed by the 1897 coming in dead last with a score of 2.66.

Anyone whose dual objective is to acquire Morgan silver dollars with a bullish future ought to begin looking at the “Top Five” above. Purchase coins in the best condition you can afford, but be sure the coins are clean, problem-free, and CERTIFIED by a reputable grading service. Be prepared to hold for at least five years. Morgan dollars have skyrocketed in value in the last three years, so some cooling off may be in order before the next upward cycle.

If a polling firm were to survey the population of US coin collectors, it is very possible that Morgan silver dollars would win the vote as the most appealing coin in American coinage history. These beautiful coins have been the heartbeat of the hobby for many years, with no retreat in sight. Ironically, these same coins spent the better part of a century hidden away in government vaults, unseen, unwanted, and unloved. My, how times have changed!