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
“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.
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.
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:
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
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.
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.
Given the choice between a free Hershey bar and a silver bar worth $150, people on the streets of San Diego chose the chocolate bar – another jaw-dropping illustration of how ignorant Americans are when it comes to precious metals.
Mark Dice’s previous video showed him attempting to sell the 10oz silver bullion for as little as 99 cents, with no takers. This time San Diegans didn’t even show an interest in receiving the silver for free, choosing the chocolate bar instead every time.
“I’ll take the chocolate bar,” says one woman as Dice tells her, “who needs a 10 ounce bar of silver, right?” as the woman physically recoils from it.
“Who needs a 10 ounce bar of silver when you can have a good delicious bar of chocolate, right?” Dice tells another man who responds, “Yeah, exactly!”
“The Hershey bar, I can eat it, I can’t eat the silver bar,” remarks another man as he choose the chocolate over the bullion.
Another woman chooses the Hershey bar, commenting, “I’m a girl and it’s been a cranky day.”
A man in a cap then sardonically asks, “silver?” before taking the chocolate bar.
A woman wearing sunglasses remarks, “I don’t have a way to do anything with the silver,” presumably unaware that she could exchange it for $150 at a coin shop just a few feet away. Ironically, the woman then becomes preoccupied with whether or not the Hershey bar is real.
“Is it real? It doesn’t seem real,” states the woman, to which Dice responds, “I mean we could go into this coin shop, we could verify this silver bar as real.”
“No, that’s alright,” responds the woman.
As precious metals specialist Addison Quale wrote in response to Dice’s previous silver bar video, “Americans have been tricked into believing precious metals are not valuable.”
Quale writes that the video illustrates how central bankers have created an “uninformed, uninterested, ignorant and pliable citizenry they can lead around by the nose,” having “essentially convinced the populace that gold and silver coins are ultimately impractical and just too old-fashioned” while making them firmly believe that promissory bank notes and certificates represent real money.
Article written by Paul Joseph Watson, InfoWars.com
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. Bullion 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.
We’ve seen over the past five years the collapse and near collapse of financial giants and companies considered too big to fail. Because of this, many people are looking for alternative investment opportunities and quite a number have considered silver coin collecting as possibility. If you are one of the many people who want to try collecting silver coins for profit, there are several things to consider ensuring your efforts will pay off.
Silver Bullion Coins
If you are seriously considering silver coins as part of your investment portfolio, you need to first of all decide if you want to collect silver bullion coins or if you want to buy silver coins that were minted and circulated as legal tender.
Silver bullion coins are generally made of 99.9 percent silver except for the British silver Britannia which has a silver content of 95.8 per cent. Normally, the face value of a silver bullion coin is lower than its actual market value. For example, the Canadian Silver Leaf is a one Troy once silver bullion coin with a face value of five dollars and a market value of over thirty dollars based on the market price of silver.
Silver bullion coins provide good protection against any economic meltdown, but if you are expecting spectacular profits from investing in this coin, you will be disappointed. Financial gains with this particular investment only happen over the course of time, when the bullion coins in your safety deposit box rise in value in consonance with the price of silver.
Apart from silver bullion coins, you can also go for the other type of silver coins which are sometimes referred to as investment coins. Generally, these are coins are made of at least 90 per cent silver and are, or have been, a legal tender in their country of origin.
In the past five to ten years, increasing silver prices have made these coins a popular choice for collectors. On one hand, there is always a chance to one day sell currency coins for a big margin of profit, but on the other hand, there are bigger risks in this direction because factors such as demand and popularity enter the picture.
On the plus side, silver is cheaper than gold so it is possible to begin acquiring a silver coin collection without breaking the bank. American silver coins that are not categorized as rare have a prize range of two to twenty dollars.
What to Keep in Mind
There are certain things to keep in mind to keep your money safe as you go about silver coin collecting.
Always do your research before you make a purchase. If a coin is worth a lot of money, look for official authentication. Find out if the coin has maintained good value over time.
Go for high quality coins which are more certain to appreciate in value than oddities. Double check quality and grade by using reliable resources like the official Red Book.
Keep clear of TV or internet bargains. Remember that if anything sounds too good to be true, it usually is.
Provide good storage for your collection. Good storage does not mean a shoebox hidden away in your closet or in your file cabinet. Get a safety deposit box.
If you want to go about silver coin collecting as an investment, be ready to sell when the price is right.
Many resources say that the outlook for silver is good and that the annual demand for this metal exceeds the supply, Moreover with the current economic situation, more and more people are becoming interested in using this metal as a way of keeping their money safe. The side effect of this increased demand would be to further drive prices of silver up, making it a good investment today. However, even with these rosy predictions, it is good to practice due diligence and caution. This way, although you may not make a killing in your investments, you will be better assured of both profit and protection in silver coin collecting.
Ongoing concerns over stalled U.S. debt ceiling talks, as well as fears of debt contagion in Europe have fueled the rapid increases in Gold and Silver with investors seeking a safe haven in precious metals. Forex.com Analyst Kathleen Brooks noted, “Recently, Gold has outpaced Silver; however, with Gold reaching a record … we think that Silver may play catch up.” Gold’s appeal as a safe haven and hedge against inflation are shining through in this time of global economic uncertainty. In addition, analysts suspect the price of Silver to continue its rise as investors seek an alternative to Gold and as demand from emerging markets begins to outpace the world’s limited Silver supplies.
The prices of Gold and Silver may only continue to rise if:
there is a continued lack of progress on the U.S. debt ceiling talks with an August 2 deadline looming,
European Union leaders seek solutions to bail out Greece again while trying to stop the crisis from hitting Spain or Italy, and
investors worry about rising U.S. inflation with a possible third round of quantitative easing, known as QE3.
If you have been waiting to make your investment, don’t put it off any longer! CitiFX’s Chief Technical Strategist, Tom Fitzpatrick, said the next Gold rally should be similar to the July through December 2010 rally. Some experts say the technical charts for Gold based on past rallies see the precious metal reaching $1,750 an ounce or higher.
Recently, investors have been particularly interested in the following precious metal investments.
1 oz. 2011 Gold American Eagles
Since the Gold American Eagle was introduced in 1986, it has been in high demand. Its stately appearance and proud symbolism make the Gold American Eagle one of the world’s most popular forms of personal Gold ownership.
1 oz. Buffalo Silver Rounds
This .999 fine Silver bullion coin is a beautiful example of James Earl Fraser’s classic Buffalo design. Investors and collectors alike treasure this popular and easy to store coin.
Strike while the market is hot and take advantage of growing investment opportunities.
Don’t miss your chance to lock in your Gold and Silver position. Concerns over QE3, the ongoing European debt crisis and the looming U.S. debt ceiling may cause prices to increase even more.
At no time has silver been worthless. While that may seem like a silly statement, if you really think about it, stocks and bonds, real estate, many other types of investments may become less than stable, but at no time in history has precious metal been worth nothing at all, or been hard to sell.
For thousands of years silver was the weight by which wealth was measured. It was cheaper than gold, but has been the basis for entire civilizations.
Even the renowned Warren Buffet did his bit with the precious metal.
In the late part of the 1990’s Buffett bought more than 100 million troy ounces (a few thousand metric tons) of silver. He did so at a price of about 4 dollars per troy ounce or a bit more. The silver price doubled and Buffet apparently sold, announcing in 2006 that he no longer held silver as an investment.
Pricing plummeted in 2008, as did many others but since then has continued to rise, slowly but steadily. Silver bullion prices can fluctuate quite widely dependent upon the supply and the demand for it. Silver is currently enjoying a very wide popularity as an investment item because the prices have been relatively good and they are steady prices.
Here’s another interesting article written by Cassandra Anderson and posted on MORPHcity of another State government working towards bringing back Constitutional money into our economy.
Idaho State Representative Phil Hart authored the Idaho State Silver Gem Act earlier this year which allows for the Idaho State Treasurer to issue silver medallions and make them available to the public; people may use them for any purpose they want and will have the option of paying their State taxes with the silver. The benefits of the Silver Gem Act are:
Silver can be used as an alternative currency, outside of the banking system
Jobs will be created in the metal refining industry in Idaho
Silver- and gold- are a protection against inflation for both the public and Idaho State
The Idaho Silver Gem Act serves as a model that other states and local governments can use. If the bill passes, people can use silver with confidence because the government of Idaho will accept it, too. The Idaho Silver gem Act will also help to prevent possible federal precious metal confiscation.
According to G. Edward Griffin, America’s monetary system is based on fiat money, it has no intrinsic value and it is not asset- backed. Federal Reserve notes have value because of government regulations (the Legal Tender laws) that mandate their use under the threat of fine or imprisonment. The Legal Tender laws require people and businesses to accept Federal Reserve notes for payment, if Federal Reserve notes are offered as payment. However, people, businesses and even governments can also accept payment in the form of gold, silver or any other thing of value- they are not tied to accepting only Federal Reserve notes.
Mr. Griffin said that the bankers DO NOT own most of the gold- most of the gold is still in the ground! And even if the bankers did own all of the gold, but the monetary system was based on gold, such a commodity backed money system would prohibit the bankers from using fractional reserves to make loans and collecting interest on money created from nothing, thus limiting their primary stream of income.
Representative Hart’s Idaho Silver Gem Act, fully endorsed by G. Edward Griffin, is a first small step toward a competing currency. Instead of creating sweeping banking reforms Hart’s legislation is practical, incremental and it can be put into place immediately. For example, Georgia had a bill that would have made it mandatory for silver and gold to be used in all State business. Georgia’s bill failed because the implementation of the bill would have been monumental- imagine the difficulty of all businesses and entities trading with Georgia State’s government having to convert all payments into precious metals.
Representative Phil Hart’s Silver Gem Act passed the Idaho House vote (51 to 14) but it died in a Senate committee earlier this year. Two of the senators who were outspoken critics of the legislation were defeated in the 2010 primary election, improving the bill’s chances for next year. The Silver Gem Act is the only competing currency bill to get this far and Phil Hart will re-introduce it again next year if he is re-elected.
There will be no double dip. It will be a lot worse.
The world economy will soon go into an accelerated and precipitous decline which will make the 2007 to early 2009 downturn seem like a walk in the park. The world financial system has temporarily been on life support by trillions of printed dollars that governments call money. But the effect of this massive money printing is ephemeral since it is not possible to save a world economy built on worthless paper by creating more of the same. The hyperinflationary depression that many western countries, including the US and the UK, will experience is likely to mark the end of an era that has lasted over 200 years since the industrial revolution,” reports Egon von Greyerz of Matterhorn Asset Management.
Hot money in inflation mode
Tuesday the government reported producer prices rose for the first time in four months, while industrial production rose more than expected. That’s it, inflation is back! The Fed’s cheap money, or near-zero interest rates, after having failed to inspire much lending and borrowing from banks and consumers, is for sure leading investment banks and hedge funds to make big bets on such things as gold. Eton Park Capital Management LP, a hedge fund, revealed it took a big stake in the SPDR Gold Trust ETF on Monday with a regulatory filing,” reports Marketwatch.
Is Silver Ready to Move Higher ?
There are several compelling reasons to consider adding physical silver to your precious metal portfolio, but why isn’t silver receiving the same attention as gold? Silver is still in stage one of its bull market, while gold is already in stage two. Bull market first stages are always marked by apathy….and disbelief that any uptrend is sustainable. Those conditions explain what happened to gold, when it was under $1,000/oz. Only when it hurdled that psychological barrier did gold start receiving widespread attention of its attributes and upside potential,” reports James Turk at GoldMoney.
Protect yourself from inflation with silver bullion coins.
2010 Year of the Tiger – 1 oz Silver Coin (Series 2)
Created due to popular demand from international investors, the Perth Mint’s Lunar design theme is secure for another 12 years with the introduction of the Australian Lunar Silver Bullion Coin Series II.
Proof Quality 99.9% Pure Silver
Struck from 99.9% pure silver, the 2010 releases are available as individual 1 kilo and 1oz coins and in a Three-Coin Set comprising 2oz, 1oz and 1/2oz coins. (1 kilo denomination shown in obverse illustration.)
Year of the Tiger Design
The reverse of each coin depicts a tiger lying under a tree. As well as the inscription ‘Year of the Tiger’ and the Chinese character for ‘tiger’, the design also incorporates The Perth Mint’s ‘P’ mintmark.
Australian Legal Tender
Issued as legal tender under the Australian Currency Act 1965, each coin features the Ian Rank-Broadley effigy of Her Majesty Queen Elizabeth II on its obverse.