Silver Bullion Bars, Coins & Rounds
Buying Silver Online from a Trustworthy Source
There are many reasons that investors (beginners and experts) immediately choose to buy silver more than any other precious metal. For beginners, when the Price of silver per ounce is so much lower than the Gold price, platinum, and palladium, they realize they can buy substantially more physical metal for their dollar. With its much lower price, buying silver bullion is much more appealing to small or novice investors.
Since this market is small and there is a high use of financial leverage on the trading exchanges, silver prices are volatile. But its role as both a monetary and investment metal and a vital industrial metal make it an exciting commodity. We believe the supply and demand picture is extraordinarily bullish.
Our Silver Forecast is Bullish
Silver - 12 Month Chart
Historical precedent coupled with current fundamentals point to the likelihood of an explosive super spike in the silver price and a high price plateau beyond that. In the last super spike in 1979, the white metal went from $6 per ounce, to over $49 just 12 months later. In other words, that's an incredible 700% upsurge over the course of a single year! Today, industrial demand will continually increase along with its investment benefits. These factors will cause the price of silver per ounce to reach new highs, or possibly another huge spike similar to 1980. Let's look at additional factors why we're bullish on the poor man's gold:
U.S. Debt Level Reaching Tipping Point
The U.S. is reaching record highs in debt and the tipping point may come sooner than later. In 1980, the national debt was a mere $930 billion. Today, it's over $18 trillion officially, with tens of trillions more in "off budget" debts and obligations accumulated in the last 40 years. The Federal Reserve's balance sheet now tops $4 trillion, with no end in sight to ultra- accommodative policies.
Above Ground Silver Inventories Are Diminishing
In 1980, available above ground stockpiles were estimated to be 4 billion ounces. Today, many estimate these stocks at less than 1 billion ounces. And annual consumption has exceeded supply in many years. As industry finds new ways to use silver, the market could experience a long-term supply deficit, and inventory depletion would then accelerate.
Silver Mining Production Appears to be Reaching Its Peak
There may be 18 billion ounces of extractable silver left according to the according to the U.S. Geological Survey. If this is indeed the case, there won't be enough supply left due to the steady increase in demand. Just last year, the demand rose to a record 1,081 million ounces according to The Silver Institute's World Silver Survey 2014. While the demand rises, production has increased less rapidly. So not only are we running out, the supply is diminishing faster than ever.
Global Silver Demand is High and Getting Higher
Considering the record growth in demand last year, all signs are pointing to a continuous increase. In 1980, the world population was 4.6 billion. We've since added another 2.5 billion people. Silver is required in a multitude of industrial, electrical, consumer, health, and energy-related applications critical to today's modern economy. (It is the world's best conductor of electricity and heat, best natural biocide, and best reflector of light.)
Unlike other metals, it is consumed in very small increments, making recycling very difficult. In other words, once it is used, it is usually gone forever, practically speaking.
At the same time, it is generally an incidental cost in the products that use it such that a dramatic increase in the price will not necessarily cause substitution. A hint of shortages could cause industry users suddenly to hoard the metal and drain remaining available inventories.
> Investor demand is surging. From 1990 to 2005, investors had been net sellers of silver. In 2006, we witnessed what appears to be a major sea change in the market. The public again became net buyers. In 2014, demand for American Eagles soared to a record-high of more than 44,000,000 coins a number that would surely have been higher if demand had not completely overwhelmed the government-run Mint's production capabilities at times. Other government and private mints around the world have been cranking out coins, rounds, and bars at record-setting levels.
> The gold / silver ratio is currently around 70, which suggests silver is vastly undervalued. The ratio of silver to gold in the earth's crust is 17.5:1 and the price ratio has hovered in that range for most of recorded history (see graph). If history is any guide, the remaining bull market in precious metals could see silver outperform gold by a factor of 4 or more.
> Save for recent decades, US silver coins have been used as money throughout human history and is in the process of reassuming that role. As faith in government fiat money (such as Federal Reserve notes) diminishes, savers and investors worldwide are embracing gold and silver as a store of value. Savvy investors are paying more attention to the declining purchasing power of the U.S dollar than ever before.
Silver as an Investment
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