Since 2001, early 2008, the Dow rose 15 percent, 250 percent of pink gold and silver rose 300 percent but after the financial crisis started in late 2008, the Dow has lost to win, while gold and silver only part of their lost profits since 2001.
The point is that we are in the middle of a cycle of raw materials, which means that the hot new asset class from stocks and real estate transfer to paper assets — oil, gold and silver — articles. And ifWe will invest in commodities in the first really start to heat up, you've seen a lot of upside for commodities, if you come to them at the right time.
While oil and gold will rise significantly in price, it is nothing compared to the gains, some believe silver will do in the coming years.
For the first 2,000 years were gold and silver are the main form of currency around the world for the average exchange rate between the two metals, silver, 12 ounces 1 ounceGold. In other words, the value of gold, silver, 1:12. However, it was time varies depending on area and time.
In China during the Ming Dynasty, for example, the exchange rate was 4 oz Silver 1 oz of gold and silver in ancient Egypt was the same value as gold, but, on average, the ratio was about 12 1
The reason was that the 01/12 ratio of gold and silver coins were in circulation side by side, and free markets, balanced the scale. TheMoney through the market is doing what is not, of course, the discovery set the right price for something.
This means that on average there were probably about 12 times more than gold and silver in circulation throughout history. It 's just the market to find the equilibrium price-quantity, based on the relative rarity of the two metals.
But in late 1800 Western Silver discoveries and technological progress has contributed significantly to the supply. These and other factors relatedthe value of silver to gold rush 1/100th of the value.
Then during the Depression, Franklin Roosevelt signed the Silver Purchase Act of 1934 and started in the U.S., the world's largest inventories pile of silver. There were a few more purchases of silver in 1950, and stocks of 3.5 billion ounces peak.
But in the early 1960 Silver $ 1.29 per ounce price had increased, not because silver was scared, but because money was also abundant. Silver was just recoveringprovide for inflation of the currency. At $ 1.29 per ounce, the silver content reached U.S. silver coins with a nominal value of silver coin.
If price were no further increase in silver, a man can get by the bank and get a little 'change, the merger and sale of silver. The government knew this and began to sell silver to keep the price.
While most of the 1970 Silver prices ranged from $ 3 to $ 6, led by Nixon abolished the goldStandards and increasing supply of liquidity. Many investors have sold most of its lead-silver at a profit.
But in 1979, prices began to rise rapidly. People listened to sell silver, and the second time in the history of the public were net buyers of silver.
The first time the public has been net buyers of silver, has forced the government to produce the last "real money" should be set (silver) in the United States and replace it with copper and zinc tokens. This time, the public purchase of silverthe metal would bring the price to explode upward from $ 50 per ounce.
to show the point to background information, as past events leading to silver the best investment for the coming years.
Thus, if investors were net buyers of silver in 1960, forced the government to abandon silver as money, and if investors net buyers of silver was in 1979, pushed prices above $ 50. Well guess what? In 2006, for the third time in the U.S.The story was the public network of buyers silver again.
But there are big differences between 1980 and today. This silver bull market will last look puny.
For most of the 1980s the public what they have always done. They would have to be invested in shares, have driven the news yesterday and put buying gold and silver. But that has changed when we entered in 1990.
Investors, $ 5 $ 50 per ounce was caught in the stock market AddictionIt 'was started in 1980, and sold their silver to buy usually at a loss, stocks. Investors from 1990 to 2005 has sold more than silver … bought a lot more. Instead, they bought more shares of their … has sold more.
According to the CPM Group (a market research and consulting firm leading commodities, precious metals), investors had sold 1.6 billion ounces of silver from 1990 to 2005. This is nearly nine times the amount sold to investorsyear 1970.
It is not only the public that was paid on their holdings of silver. Governments around the world have stopped selling coins and silver, as were their arsenals are off.
Since 1960, the period in which every government on the planet uses significant reserves of silver coins and silver was, and is a time when the U.S. 3.5 billion ounces (the largest in the history of control of stocks 'silver), all governments have sold off their silverActions.
This additional supply has had the effect of artificially depressing the price. Today, governments around the world are essentially of silver. This government fire sale was accompanied by the sales of investors about 1600000000 oz 1990-2005.
As a result, artificially depressing the price of silver so low that in many cases, the price was the lowest extraction costs by some primary producers of silver activity.
So if the governmentSale of silver, and investors sold silver, buy silver, who was it?
The answer: the industrial production. Silver, which was sold, was used to produce consumer goods.
Of all the elements, the metallic silver is indispensable. And 'electrically conductive, thermally conductive and reflective. Modern life as we know it would not exist without silver.
Photography, batteries, electronics … all these things came of age, and was widely available during orshortly after the Second World War, and then absolutely exploded in use after 1960 because of scientific evidence relating to industrial applications of silver.
In contrast to silver, gold is only used two basic, and both are hoarding the type used when not accustomed to the metal … "Real money and jewelry. Less than 10 percent of gold production is used in industrial applications. 90 percent of all will never be extracted in the history of gold offered for sale somewhere.
Silver,On the other hand, has hundreds of industrial applications and industrial applications. Here is a small example of the many applications for silver batteries, bearings, biocides, soldering, catalysts, coins, electrical wiring, electronics, electroplating, jewelry, medical, mirrors and reflective coatings, photography, silverware, solar cells, soldering , water purification.
Of all the uses for silver, jewelry and silverware only result in savings of silver used in all otheruses silver gets used in microscopic quantities, thrown away and ends up in landfill. That's where the billions go oz!
In 1980 there were 2.5 billion ounces of silver to buy that investors could, and in 1990 stood at 2.1 billion ounces. Today the stocks are almost nonexistent. The point is that for the first time in the history of the quantities available, investors can buy that silver is rarer than gold.
Stocks of silver, the once mighty U.S.is instead the end of 1950 and early 1960, only 0.0056 percent. It was reduced from 3500000000 oz only 20 million ounces. And the rest of the world, governments have followed suit.
We have a world in which every country uses silver as money is gone and held large stocks of silver reserves in a world which is silver. Indeed, if all the bonds of silver in the world, add the total number of only 0.016 percent, only the United Statesbe used alone to hold.
The only reason that silver is so cheap now is because people think "it should be cheap. They have been conditioned to think that because governments have dumped their silver in the markets for half a century.
This additional provision had the effect of suppressing the price of silver, and low price has consumed more silver than in our production has led more than half a century. And since 2007, governments have spent almost silver, and haveselling as investor interest is growing.
But, as we know now, there is almost no silver for investors to buy the left. And Economics 101: If there is strong demand and the minimum bid, the prices will explode.
But usually only silver mine? The short answer is yes. But the good news for investors is that silver will not be silver, the majority of deliveries of silver mining.
Rather, the supply of silver is often a byproduct of the extraction of copper, lead and zinc and gold. InIn fact, about 75 percent of 'supply of silver was just extracted as a byproduct of mining other metals. Silver is just a bonus to mining companies. So, you sell on the market, but the point is, its activity does not depend on the price of silver.
If you get a miner of copper per cent of its revenue from silver, is not safe to dig, climb up to ten times more than copper for its production of silver by a factor of ten. Thus, to meet the burden falls on the demand for silvershoulders, which are known as primary producers of silver, and are rare.
Currently, the silver mine production is slightly over 500 million ounces per year. primary producers of silver to produce only 25 percent or 125 million ounces this year. If you ask where you can freeze time and the primary producer of silver Were able to double the production would be more than 15 years of silver stocks to 1990 levels, they were obtained, but the demand is increasing, asthe world wants the same living in the western world.
But usually just open the silver mines more? The short answer is yes. But the global average for the inclusion of a mine from discovery to production is 5-7 years, and in countries with strong environmental laws, which May take much longer.
In the U.S., for example, if you found a deposit of silver or gold, if it were in a state like California, do not get a license for me because ofCondition of strict environmental laws. Moreover, usually begin exploring great if the price is much higher levels.
And to top it all, because of the long bear market in precious metals is a serious lack of experienced staff with expertise needed for extraction.
Moreover, the world has not only managed silver above ground is, it is also short of silver in the ground. minable deposits of silver is more difficultto find.
According to the United States Geological Survey (USGS), the current rate of production, the two metals, we made the first gold and silver are running. These rates gold reserves will be exhausted in 30 years, and silver in 25 years. At the current rate of production, there is less minable silver in the earth than any other metal left.
While the dollar continues to lose value, large investors will pay the first direction and dramatically pushed the gold price. By the time theGeneral is the fish to seek gold in them dearly. But it all starts so, with rare hearing on silver than gold.
Quickly, people plunge in silver, as inventories are reduced and the production has virtually stopped practice. This is when silver explodes.
So it's a safe assessment to say that silver is very undervalued at present. And remember that for the first 2000 years of history, that the exchange rate between goldand silver was 12 ounces of silver to one ounce of gold on average.
Now here's the exciting part. Given enough time, the return values for the mean time. But if something is out of whack hard, it usually means exceeding the mark, before settling back in. The longer and more out of balance, the more it is usually to coat.
For more than a century, gold / silver ratio was extremely out of balance, is the time of the exchange rate between gold and silver almost 70.1. Youcan bet that if a family is made of silver, this ratio will go screaming, and I am quite confident in this way to step beyond the historical average of 12-1.
And, because there is less silver than gold for investors to buy, I think it might even go so far to reach or exceed the price of gold. Now you know why silver is truly a "precious metal.