16 Reasons Why Silver Is Still An Investment Of A Lifetime

Forget silver. It’s not going anywhere. After all, it hasn’t for two years!

Since silver bullion tested the critical $50 psychological level, a two+ year consolidation period has left sentiment at an all-time low. While the mainstream was once enamored with silver bullion, since April 2011 the mainstream has gone quiet.

But, rest assured, there are still a myriad reasons why silver is a great investment, and here are 16 of them.

https://www.goldsilverbitcoin.com/16-reasons-why-silver-is-still-an-investment-of-a-lifetime/

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1. Demand is going up and up! The US Mint set record high sales of American SIlver Eagles in July, having sold over 4 million of the 1-oz silver bullion coins. Indeed, for the first seven months of 2013, the American Silver Eagle bullion coins grew faster than ever as 2013 is well on its way to setting a new annual record for the coins. During January through July 2013, total American Silver Eagle sales hit 29,450,000 ounces, a number not accomplished until November 5 2012. The current annual sales record is 39,868,500 American Silver Eagle bullion coins sold in 2011, when the 29.45 million silver ounce mark was not achieved until September of that year.

2. Supply line shortage. The supply line of silver has been sketchy for some time. There are more than 400 million paper ounces of silver traded a day, but when Sprott Asset Management opened their physical silver trust, it took many months to acquire 15 million ounces.

3. Technology! 2010 industrial production of silver was up 18% due to the rising demand from technology. SIlver is more and more being used in computers, cell phones, and solar panels. Healthcare is seeing increasing demand for silver due to silver’s antimicrobial properties.

4. Silver is closing the margin on the gold-to-silver ratio. The historical average gold/silver ratio is 16-to-1. Right now it is trading at around 62-1. As recently as April 2011, this ratio was 30-1.

5. Not enough silver! Sprott and many other analysts maintain that a silver shortage will lead to further “backwardation.” With millions of ounces in the ground, backwardation can mean there is simply not enough of the asset available now.

6. $86 billion in monthly Fed purchases.  The Federal Reserve and central banks are printing money in order to deal with fiscal issues. The Federal Reserve currently prints 86 billion dollars per month.  It is estimated that half that amount has been mined in silver IN THE HISTORY OF THE WORLD. Yes, just 45 billion ounces of silver in all of history. 680 million ounces of silver are mined each year.

7. Poor Man’s Gold. Silver is significantly cheaper than gold. That means that people on main street can afford silver. That is why silver has been considered the poor man’s gold.

8. Inflation - We hear lots about the inflation in the US, but not so much about inflation in other places like China, where gold demand is already sturdy. In July, overall food prices rose 5% over last year, while pork prices increased 1.7% compared to the previous month. Vegetable prices jumped 2.2% from June.

9. Gold demand. China’s Gold purchases increased 54% in the first half of 2013! The amount purchased reached 706.38 tones, meaning the country is online to exceed last years’ purchases. In fact,  China had already purchased in the first half of 2013 85% of what it purchased all year last year.

10. JP Morgan getting out of silver manipulation? An apparent off-the-whim “internal review” has led JPMorgan to want OUT of the commodities market.  After years of protested silver manipulation, could this be the end? Is silver set to increase in price now that “the Morgue” is out of the picture? One thing is for sure, some silverbugs are rejoicing.

11. The US Dollar. The US Dollar has lost 31% of its purchasing power since 2000. Since 1971, the US dollar has lost 82% of its purchasing power.

12. Silver is a small market, still! The total amount of silver available to trade in the physical silver market is merely $70 billion versus a $4.3 trillion gold market. The total market size of silver is only 1.6% of the entire gold market. This means a lack of liquidity, extreme leverage and wild volatility…to the upside as well!

13. Silver shorts. Silver shorts have hit record extremes, and a super bullish short squeeze is everyday more likely. The futures’ traders are simply too leveraged to the downside!

14. Silver shorts going long. Despite these record shorts, investment banks are closing out short positions. Short positions have reduced from 259 million ounces in February to 20 million ounces in June.

15. Silver Mining Industry. The silver mining industry cannot sustain itself at current levels. Many estimates posit that the average price to pull silver out of the ground is $21. That means many silver miners are losing money on the silver they mine!

16. JP Morgan wants physical!  The TF Metals Report demonstrates that JPMorgan is taking physical delivery of silver bullion in upwards of 90% of the contracts they are settling!  This is much different than your typical futures contracts, which is settled in physical merely 3% of the time!

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Pretty interesting. CYA:SE