Diminishing silver supply is THE best reason for owning silver. There simply isn't much left for the retail investor, and it’s getting harder to find.
This shortage will undoubtedly be felt by industrial users soon. Despite the state of the economy, silver prices will begin to reflect demand. For the investor, time is running out.
Silver is misunderstood, as is any rare, strategic natural resource. For many years, the world has used more silver than it has produced, yet most people assume that silver is abundant.
This was certainly the case before the industrial revolution. Since then, we've had a dramatic shift in perception, just as the mainstream investor begins to catch on, and yet before the inevitable price explosion.
Over the last two generations, major government stockpiles of silver have been sold off for use by industry. Currently, though, the amount of silver mined each year is far less than the amount used. Industrial users will soon begin to feel the pinch of longer delivery times. When this happens, silver prices will skyrocket.
Soaring prices will mean the end of cheap silver. This is why it is so critical to act now.
Remember that silver is rare compared to gold. Even long-time silver investors often overlook this fact. Even though gold is a highly desired item, it is NOT an industrial commodity. Whereas gold is desired, silver is needed. This makes it even more critical to take action quickly.
Consider that the world’s investors get their main clue from price. Because gold has traded at more than 50 times the price of silver, investors assume that gold is more rare than silver. Yet there is 200 times more gold available than silver in dollar value.
Only 35% of silver supply comes from pure silver mines. The rest is the by-product of gold, copper, zinc, and lead mining. In the wake of digital imaging, the recycling of photographic scrap for silver has flattened out. Return of silver jewelry dropped by 20% in 2007, and is expected to remain at similar levels for some time.
Given the large market cap in gold compared to silver, even if all the owners of silver decided simultaneously sell their silver and buy gold, this would only amount to 0.5% of the gold market cap.
In contrast, if only one half of one percent of gold owners decided to switch into silver, that would represent 100% of the silver market cap. This would have an enormous impact on the price of silver. Just imagine that price ratio reversed.
When it comes to silver supply, the economy simply doesn’t matter. In a strong economic scenario, surging industrial demand and depleted inventories would propel silver, creating larger annual deficits and forcing prices significantly higher. In a weak economic scenario, many base metal producers would slow production, and as a consequence, the world silver supply would decrease.
Mining is already expensive, but 65% of the world's silver comes as a byproduct of other metal production. As a result, silver production cannot be increased without much disruption to other mining activities. That would mean substantial overproduction of copper, lead, and zinc.
Silver deficits now run between 50-100 million ounces per year. The only way to bring the supply and demand for silver into balance is higher prices. This is where the dynamics of the silver market become very exciting for investors.
Think of it—the world has been depleting its silver inventory for more than 60 consecutive years, diminishing the only source of what is available for investment. And only now have we begun to collectively see that silver is a good investment.
Even as premiums rise and available retail supply dwindles, there is still time. Remember, the very best form of silver you can own is physical and in your personal possession
Click here to get started with silver coins or bullion today!
The Nature of Silver Supply and Demand
One Billion Silver Ounces and 100 Billion Owners
Mining Silver: Rare Earth Supply
Stock to Flow- Silver Supply in a Fiat Depression
Peak Silver May Be Here Sooner Than Most Think
Germany's Gold and Your Silver
Your browser does not support iframes.Feedback from readers...
"Silver Coin Investor is cutting edge and has it all...the value I receive from your website and The Lewis and Mariani Silver Letters is far, far greater than the small subscription cost. I am finding that I don't need any other source for silver research and knowledge. Thanks Jeff.
I mean that.
"I find any information I can learn about investing in silver interesting. Your website and e course have taught me a few things I didn’t know. You’ve provided some good reading and links about something I love as a hobby and my and my family’s future. Thank you"
Dennis - Mount Sterling, Kentucky
"I've been reading on silver on many sites, I find your information more practical and straightforward and full of content, thanks".
Xavier - Barcelona, ESP
"Your website and E-Course helped provide a different take on the metals".
Paul - Beckley, West Virginia
"I appreciate the educational aspects of your website/e-course. Your course has helped to reinforce my decision to purchase more silver".
Spencer R. - Loomis, California
"I appreciate your sharing your vast knowledge with those of us who are learning about the potential for silver investing".
Thomas - Peoria, Arizona
"I have a very busy schedule and your course updates keep me focused on the "silver strategy"
Bob M. - Kitchener, Ontario
"I've read your articles on Market Oracle and I appreciate the clarity in your writings. You confirm what I believe, that silver has a huge upside and if patient will pay off".
Ken - Littleton, Colorado
"Well it helps confirm my conviction that silver is far better metal to invest in than gold or any of the other metals because of its monetary, medical, and industrial uses. So it really has a realistic unrecognized potential that I feel the gold bugs overlook. I read and research a lot of different sources and you help me stay balanced in my approach. Thanks for the course and keep up the good work!"
Bill - Columbus, Ohio
"This course and website is slowly restoring my confidence as an investor in silver. At one point I was ready to unload it all at rock-bottom prices. Since I've read the letter I've held on.
Kim - Saint Thomas, Ontario
Thanks for making it all free and very simple.
Jim - Kingsland, Georgia
"The E-Course is very upbeat and has helped me to feel more confident about the future of Silver!" -
John J. - Harrisville, New Hampshire