Silver Will Outperform Gold!
Posted By on December 7, 2009
Investors looking to store their money in hard assets like gold are finding that they should do so quickly before the price gets away from them. In 2001 we saw the price of gold at $250/oz and today it is shocking to see the price at $1,170/oz. Gold is the world’s hedge against inflation, and many investors are turning to gold as a safe haven
There are not many people who are familiar with why their money should be invested in gold. As much as I would love to talk about gold, today I’m going to speak about a much better investment which is silver. Silver is a better investment than gold for many reasons, and the corresponding gains in gold will be nothing compared to silver.
The price of silver per ounce is $18.60 today. Silver was about $4.00 per ounce in 2001. The increase is 400%, and steadily rising. But, you may be wondering why silver is such a great investment. After all, gold made 400% increases in price. Let me share some facts with you.
In above ground inventories, silver is more rare than gold by a long shot. The amount of gold above ground is about 5 billion ounces, while the amount of silver above ground is under 1 billion, with only about 300 million of that available for investment purposes. The other 700 million ounces are for industrial purposes.
Silver is consumed as soon as it is mined. What I mean by that is it is used for tv’s, refridgerators, solar panels, medical purposes, and many other applications. Basically any kind of electronics consumes silver. Silver is used and put into land fills never to be seen again.
95% of the gold mined is still in investment form, because gold does not have an industrial role. Silver is simply consumed and thrown away, and that’s why the inventories of silver are at all time lows. The levels are dangerously low because companies consume silver at a much faster rate than can be mined. The USGS has informed us that by 2020 silver will go extinct.
Silver really is the new gold if you look at the rarity value, and many experts have stated that the silver price will go anywhere from $100/oz to more than the price of gold. If that is the case, then silver would need to be $1,170/oz. Silver is the investment of a lifetime, and some experts are saying that there has never been as sure of an investment explosion like that of silver.
Some may make the mistake of saying that a metal like silver couldn’t or wouldn’t go that high, but look at the price of rhodium. Just a few years ago the price was at $300/oz and now it is nearly $10,000/oz. It can happen to silver, and there are many other factors that will push the price of silver up.
There has been price manipulation of silver and gold for many years now on the COMEX. This price suppression of silver has held the price artificially low for a long time and is about to bust. Certain banks have been illegally short selling silver contracts in order to suppress the price of silver. Some organizations are putting a stop to this illegal activity, and once the short sellers are forced to get in line with the position limits on the COMEX there will be a historic price explosion.
If it is not evident to you that you must be in silver coins, silver bars, silver bullion, or Silver American Eagles then I have not done my job. Invest in silver to protect yourself from inflation. Most people will not listen to this advice until the pundits on CNN are spouting about how high the price of silver is, then it will be too late.
Please click the link “will silver outperform gold?” to learn more about silver.