Silver Shortage This Decade, Silver Will Be Worth More Than Gold
In a nutshell; the video below is why I buy silver. I mention the 4 reasons that most people buy silver and gold. I buy for a number of reasons. But one reason is because I truly believe that silver is EXTREMELY undervalued. I believe that silver SHOULD be worth more than gold. And if industrial uses continue, silver will be at such a shortage, that I truly believe that silver will eventually surpass gold. Obviously, a substitute for silver will be required if we eventually run out of silver, but currently, most silver is mined as a bi-product while mining for other metals. As the demand for industrial uses goes up, so with the specific mining for silver.
I see silver going very high. When; I don't know. But here's my theory. Lets' say that at today's prices, you buy $10,000 worth of silver. That's approximately 500 ounces at $20 an ounce. If you've been buying some so far, and you dollar cost average, we'll say 330 ounces for the $10,000 if you are averaging $30 an ounce. Now; for some people, $10,000 is a lot of money. But if you bought a couple hundred dollars worth a month, $10,000 isn't really that difficult to buy. And in my opinion, whether it's 330 or 500 ounces, that is the PERFECT amount to HOLD ON TO. I'm not talking about the silver you buy for the main purpose like I do; to pay off debt and to buy goods at a discount. I still do that. But having 300-500 ounces of silver stashed away as an investment, could become quite valuable. As I said, I don't think $10,000 is all that much if bought on a regular basis. And at today's prices, if you could buy 100 ounce to start, ($2,200) roughly, and added to it when you can, 300-500 ounces wouldn't be hard to do.
Now; where am I going with this. Throughout history, other than some spikes, silver/gold keep pace with inflation. In other words, if nothing catastrophic happens to the economy or the world, the silver/gold you buy, will at least give you back what you put into it. No different than putting the money in a savings account and never touching it. But silver is safer than a bank., (Ask the folks in Cyprus). If silver and gold keep up with inflation, you'll make a few bucks. In my opinion, that's the WORST CASE scenario. Yes, there will be spikes. Like now. You simply ride those out until the price comes back again. But; unlike gold; silver has many industrial uses. And it's getting even more with solar panel production on the rise. Silver; unlike gold; usually is not recycled and winds up in the land fills. That's because so little silver is used in EACH PIECE of electronics, that it's not worth recovering. However; collectively, we're talking over 90 MILLION OUNCES of silver in 2011 just for electronics. The vast majority of gold is still here. Most silver is gone. (WATCH THE VIDEO BELOW). But our need for cell phones, computers, tv's, tablets, electronics in cars, and in the majority of our lives, is overwhelming. We couldn't survive as a society without electronics. If gold production stopped, we wouldn't really notice it in our standard of living. But if silver stopped, they'd have to resort to lower quality alternatives. Prior to that however, they'll squeeze every last ounce of silver.
So, at that time, maybe 5, 10, 15, 20 years.... Silver could EASILY be worth $500, $1,000, $2,000, or more per ounce. Gold is $1,300 an ounce currently, and silver is actually rarer than gold when you consider the consumption. Why couldn't silver be worth that much. Especially when you have legitimate demand for it. Not just jewelry and investors.
So, at those prices, that 300 - 500 ounces @ $500 - $2,000 an ounce; could be worth anywhere from $150,000 to $1,000,000. Not bad for a $10,000 investment. Anyway, watch the video and consider in your portfolio, if it's possible that maybe you can save up 300 - 500 ounces of silver that you can simply hide away until you see the prices going up because of industrial shortages. Then you can simply sell it back 10 ounces a week (To keep you below the tax radar), Anyway; enjoy the video. It's short but very informative.CYA:SE
I see silver going very high. When; I don't know. But here's my theory. Lets' say that at today's prices, you buy $10,000 worth of silver. That's approximately 500 ounces at $20 an ounce. If you've been buying some so far, and you dollar cost average, we'll say 330 ounces for the $10,000 if you are averaging $30 an ounce. Now; for some people, $10,000 is a lot of money. But if you bought a couple hundred dollars worth a month, $10,000 isn't really that difficult to buy. And in my opinion, whether it's 330 or 500 ounces, that is the PERFECT amount to HOLD ON TO. I'm not talking about the silver you buy for the main purpose like I do; to pay off debt and to buy goods at a discount. I still do that. But having 300-500 ounces of silver stashed away as an investment, could become quite valuable. As I said, I don't think $10,000 is all that much if bought on a regular basis. And at today's prices, if you could buy 100 ounce to start, ($2,200) roughly, and added to it when you can, 300-500 ounces wouldn't be hard to do.
Now; where am I going with this. Throughout history, other than some spikes, silver/gold keep pace with inflation. In other words, if nothing catastrophic happens to the economy or the world, the silver/gold you buy, will at least give you back what you put into it. No different than putting the money in a savings account and never touching it. But silver is safer than a bank., (Ask the folks in Cyprus). If silver and gold keep up with inflation, you'll make a few bucks. In my opinion, that's the WORST CASE scenario. Yes, there will be spikes. Like now. You simply ride those out until the price comes back again. But; unlike gold; silver has many industrial uses. And it's getting even more with solar panel production on the rise. Silver; unlike gold; usually is not recycled and winds up in the land fills. That's because so little silver is used in EACH PIECE of electronics, that it's not worth recovering. However; collectively, we're talking over 90 MILLION OUNCES of silver in 2011 just for electronics. The vast majority of gold is still here. Most silver is gone. (WATCH THE VIDEO BELOW). But our need for cell phones, computers, tv's, tablets, electronics in cars, and in the majority of our lives, is overwhelming. We couldn't survive as a society without electronics. If gold production stopped, we wouldn't really notice it in our standard of living. But if silver stopped, they'd have to resort to lower quality alternatives. Prior to that however, they'll squeeze every last ounce of silver.
So, at that time, maybe 5, 10, 15, 20 years.... Silver could EASILY be worth $500, $1,000, $2,000, or more per ounce. Gold is $1,300 an ounce currently, and silver is actually rarer than gold when you consider the consumption. Why couldn't silver be worth that much. Especially when you have legitimate demand for it. Not just jewelry and investors.
So, at those prices, that 300 - 500 ounces @ $500 - $2,000 an ounce; could be worth anywhere from $150,000 to $1,000,000. Not bad for a $10,000 investment. Anyway, watch the video and consider in your portfolio, if it's possible that maybe you can save up 300 - 500 ounces of silver that you can simply hide away until you see the prices going up because of industrial shortages. Then you can simply sell it back 10 ounces a week (To keep you below the tax radar), Anyway; enjoy the video. It's short but very informative.CYA:SE
Comments
Post a Comment