Should you be buying silver now?
This is my own opinion. As is many of my posts. But I think this question is being asked a lot lately. For both Silver and Gold. This is a really tricky situation right now.
First, I believe you should always be buying silver; and to an extent gold. Silver and Gold are where you STORE your wealth. Silver and Gold ARE MONEY. You don'T "buy" Silver and Gold. You exchange for it. Just like you exchange dollars for euros, yen, etc. The difference is, Silver and Gold preserve their purchase power. Imagine the following:
The year is 1964. You and a friend (Both of you are 16 years old) save up $2700 each. That is the price/cost of a BRAND NEW Ford Mustang. You both decide to go buy your new car. Your friend has $2700 in $10's $20's, and $50's. You have your $2700 in Quarters, Half Dollars, and Dollar coins. I chose this year (1964) because that was the last year that coins were made with silver. But you could have easily had the same amount of silver in bullion. Roughly 2100 ounces of Silver. (A dollar's worth of pre-1965 coins is about .775 ounces of silver).
Anyway; the two of you are on your way to buy the car. You get into an bus accident (Because you don't own a car); and you both go into a COMA. You stay in the coma for 56 years. You miraculously wake up from your coma. Doctors and everyone think it's a miracle. After all the celebration, you and your friend talk; and say; what were we on our way to do before going into a coma? Oh yea.... we were on our way to buy a new car. Well, might as well go do it now. So, the friend with $2700 in $10's, $20's, $50's. Can he buy a new car for $2700? Very unlikely. You, who had $2700 in quarters, halve, dollar coins, etc. (equal to around 2100 ounces of silver) at today's rate of $17, have approximately $35,500 in CASH. Can you STILL BUY a new car? YUP!!! A 1 ounce piece of silver in the beginning of the 1900's could get a person a nice dinner. Can a silver coin worth $17-$20 still get a person a dinner? Yes. In the early 1900's, a 1 ounce piece of gold could buy you an acre of land. Today, can $1700 buy you an acre of land. In MANY PLACES, Yes. That's my point. Silver and Gold hold their value. Dollars DON'T.
So, the topic of this blog today was if you should be buying silver. The answer is, you should ALWAYS be buying silver. Even some gold. Here's today's problem. Physical silver (The ONLY SILVER or GOLD TO BUY IS PHYSICAL) is hard to find. No one wants to SELL and mines aren't producing that much. The bankers, JP Morgan, etc. are manipulating the price. Spot price currently is almost $18 an ounce. Normal premiums are about $2. But you would be hard pressed to find ANY SILVER that you can buy, that is less than $25 an ounce. If you buy 100 or more ounces at a time, you can find some for about $21-$22 an ounce. Definitely buy that. Yes, it will cost you $2100-$2200, but if you have NO Silver, or very little, this is still a great deal. If you can only buy 1 or 2 ounces at a time, it's going to cost you around $25 an ounce. That's tough.
Depending on your age however, that can still be a good deal. 80% of all silver is used for industrial purposes. 80% of that 80% is in electronics, solar, etc. and it is not cost effective to recover. So it winds up in the land fills. Meaning, very little silver (Except for bullion and jewelry) are still in existence. Gold, on the other hand, about 90% of what's ever been mined in history, is still accounted for. But silver will become MORE and MORE SPARSE. That's why you should be buying it. Don't look at it like gold, like a commodity. Look at it as something NECESSARY for industry, and it's gradually running out. In time, silver will be worth much more than you ever paid for it. $100, $500, $1000 an ounce for Silver is not a fantasy. That's quite possible. If in time, you obtain 1000 ounces of Silver; averaging $25 an ounce, that's $25,000. But, if it goes to $50 (Like it did in 2008), it will be worth $50,000. At $100 an ounce, it's worth $100,000. Currently, it's a great store of wealth. It will buy you tomorrow, what it can buy today. BUT.... with industrial needs increasing, and the supply of silver decreasing, Silver is going to take on the price change because it's NEEDED. Won't matter what "Investors" want. If a manufacturer can't build a car, refrigerator, solar panel, computer, etc. because they don't have any silver; they will PAY YOU ANYTHING to get the silver. Same with the health care industry. Silver is a natural anti-biotic and used in the health care industry from medicine to sanitizing equipment.
Anyway; if you aren't on the Silver buying train yet, it's a good time to start. But start soon.
CYA: SE
First, I believe you should always be buying silver; and to an extent gold. Silver and Gold are where you STORE your wealth. Silver and Gold ARE MONEY. You don'T "buy" Silver and Gold. You exchange for it. Just like you exchange dollars for euros, yen, etc. The difference is, Silver and Gold preserve their purchase power. Imagine the following:
The year is 1964. You and a friend (Both of you are 16 years old) save up $2700 each. That is the price/cost of a BRAND NEW Ford Mustang. You both decide to go buy your new car. Your friend has $2700 in $10's $20's, and $50's. You have your $2700 in Quarters, Half Dollars, and Dollar coins. I chose this year (1964) because that was the last year that coins were made with silver. But you could have easily had the same amount of silver in bullion. Roughly 2100 ounces of Silver. (A dollar's worth of pre-1965 coins is about .775 ounces of silver).
Anyway; the two of you are on your way to buy the car. You get into an bus accident (Because you don't own a car); and you both go into a COMA. You stay in the coma for 56 years. You miraculously wake up from your coma. Doctors and everyone think it's a miracle. After all the celebration, you and your friend talk; and say; what were we on our way to do before going into a coma? Oh yea.... we were on our way to buy a new car. Well, might as well go do it now. So, the friend with $2700 in $10's, $20's, $50's. Can he buy a new car for $2700? Very unlikely. You, who had $2700 in quarters, halve, dollar coins, etc. (equal to around 2100 ounces of silver) at today's rate of $17, have approximately $35,500 in CASH. Can you STILL BUY a new car? YUP!!! A 1 ounce piece of silver in the beginning of the 1900's could get a person a nice dinner. Can a silver coin worth $17-$20 still get a person a dinner? Yes. In the early 1900's, a 1 ounce piece of gold could buy you an acre of land. Today, can $1700 buy you an acre of land. In MANY PLACES, Yes. That's my point. Silver and Gold hold their value. Dollars DON'T.
So, the topic of this blog today was if you should be buying silver. The answer is, you should ALWAYS be buying silver. Even some gold. Here's today's problem. Physical silver (The ONLY SILVER or GOLD TO BUY IS PHYSICAL) is hard to find. No one wants to SELL and mines aren't producing that much. The bankers, JP Morgan, etc. are manipulating the price. Spot price currently is almost $18 an ounce. Normal premiums are about $2. But you would be hard pressed to find ANY SILVER that you can buy, that is less than $25 an ounce. If you buy 100 or more ounces at a time, you can find some for about $21-$22 an ounce. Definitely buy that. Yes, it will cost you $2100-$2200, but if you have NO Silver, or very little, this is still a great deal. If you can only buy 1 or 2 ounces at a time, it's going to cost you around $25 an ounce. That's tough.
Depending on your age however, that can still be a good deal. 80% of all silver is used for industrial purposes. 80% of that 80% is in electronics, solar, etc. and it is not cost effective to recover. So it winds up in the land fills. Meaning, very little silver (Except for bullion and jewelry) are still in existence. Gold, on the other hand, about 90% of what's ever been mined in history, is still accounted for. But silver will become MORE and MORE SPARSE. That's why you should be buying it. Don't look at it like gold, like a commodity. Look at it as something NECESSARY for industry, and it's gradually running out. In time, silver will be worth much more than you ever paid for it. $100, $500, $1000 an ounce for Silver is not a fantasy. That's quite possible. If in time, you obtain 1000 ounces of Silver; averaging $25 an ounce, that's $25,000. But, if it goes to $50 (Like it did in 2008), it will be worth $50,000. At $100 an ounce, it's worth $100,000. Currently, it's a great store of wealth. It will buy you tomorrow, what it can buy today. BUT.... with industrial needs increasing, and the supply of silver decreasing, Silver is going to take on the price change because it's NEEDED. Won't matter what "Investors" want. If a manufacturer can't build a car, refrigerator, solar panel, computer, etc. because they don't have any silver; they will PAY YOU ANYTHING to get the silver. Same with the health care industry. Silver is a natural anti-biotic and used in the health care industry from medicine to sanitizing equipment.
Anyway; if you aren't on the Silver buying train yet, it's a good time to start. But start soon.
CYA: SE
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