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Top Reasons To Own Silver
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Value
Right now, Silver is really cheap. Adjusted for inflation, the price of Silver is actually at a 600 year low. As unbelievable as that may seem it is even more interesting to note that there is less above ground Silver than Gold. That’s right, Silver is rarer than Gold. As both an invaluable industrial metal and a store of wealth Silver offers great value to investors.
Industrial Demand
Unlike Gold, Silver’s usage in modern technology is astounding. Computers, cars, cell-phones, all employ trace amounts of Silver. And it doesn’t end there. Solar power, water purification, and anti-bacterial applications make Silver an invaluable resource for today and the future. The best part about all this is that the Silver price is inelastic. This means that even if the price were to skyrocket the usage would not stop.
Protection Against Inflation and Declining Currencies
Governments around the world are printing money at an unprecedented rate. We’re not just talking about some banana republic. We’re talking about the richest and most powerful country in the world – the United States. The U.S. Federal Reserve is printing dollars to spend its way out of recession. But countries can’t print money without consequences. All the extra money on the market will reduce the spending power of the dollar and other currencies in real terms. But you can protect yourself. People who invest in Silver can not only expect to preserve their wealth in uncertain times. They can watch their wealth grow.
Silver is Scarce
As we look at Silver’s supply/demand fundamentals the outlook gets very exciting. For more than two decades there has been a deficit between how much Silver is mined and how much is used. I.e. This metal’s inventories have been in steep decline. Looking at the mining sector we can see that most of the Silver in the world is mined as a by-product of other metals such as copper, zinc, and lead. With the declining economy of course all of these sectors have slowed. So even less Silver is coming on line than before. The problem is, emerging economic giants like China and India just can’t get enough of the metal. Do the math. Silver is very scarce and in very high demand. Holding the tangible asset is going to greatly benefit the investor.
Silver Then and Now
People may call Silver the poor man’s Gold but it should really be called the people’s money. For hundreds of years Silver has been money, a preserver of wealth and during turbulent times it has spelled opportunity. In the late 1970’s people saw their Silver investments explode as the price soared from $5 dollars an ounce to nearly $52 an ounce. It’s happened before and it will happen again. Historically, the price ratio of Silver to Gold is 16 to 1 and yet today that ratio sits at approximately 70 to 1. This is just one more reason to hold Silver and take advantage of the coming price explosion.
Investment Examples:
5000 Oz. of Silver Using Collateral Financing (USD):
| Minimum Investment $16,250 = 25% Equity ($65,000 x 25%) |
Metal Silver |
No.of Oz 5000 |
Price/Oz $13.00 |
Total Metal Value $65,000 |
Buy Out Option (If you wanted to convert to 100% ownership)
75% x $65,000 (Total Metal Value) = $48,750
Projected Returns On 25% Equity
If Market hits $20.00 per ounce (Where we were only a few months ago)
| Metal Silver |
No. of Oz 5000 |
Prices/Oz $20 |
Total Metal Value $100,000 |
Buy Out Option $48,750 |
Increase in Position $35,000 |
If Market hits $25.00 per ounce (We think this could happen within the next 12 months)
| Metal Silver |
No. of Oz 5000 |
Prices/Oz $25 |
Total Metal Value $125,000 |
Buy Out Option $48,750 |
Increase in Position $60,000 |
If Market hits $50.00 per ounce (We think we could see this range within 36 months)
| Metal Silver |
No. of Oz 5000 |
Prices/Oz $50 |
Total Metal Value $250,000 |
Buy Out Option $48,750 |
Increase in Position $185,000 |
*This is an approximate example, using gross figures, which does not take into consideration account fees, commissions and finance charges, or any subsequent buying and selling which may or may not increase your overall profit/loss. Please speak with an account representative to get a full understanding of how these fees may impact your overall return.