Friday, September 7, 2012
Which is a Better Investment? - Gold Vs Silver
A Revolution is defined as "a turn around" or fundamental change in power that takes place in a relatively short period of time.There is a Silver Revolution going on worldwide, yet mainstream media, particularly in the U.S., has failed to report about it.The U.S.Has gone from being net sellers of silver, to recently becoming buyers of the precious metal and the trend is gaining international momentum--causing the purchasing power of silver to increase dramatically.Within the last 10 years the price of silver has quadrupled, and since February 2010, silver has increased by 30%, outpacing gold's rise of 17%.Despite the fact that nearly every American consumes silver daily, less than 5% of us are actual saving and investing in the precious metal.This was not the case 50 years ago when it was common to carry pocket change made of 90% silver coins.Yet today, pre-1964 silver coins have become increasingly harder to find.Many were melt down to silver bullion in 1980 when the price of silver soared to $50 per ounce.Peter Schiff, a Financial forecaster with a track record of being "right", suggest that current conditions in the market are positioning both silver and gold to reach monumental surges in demand followed by worldwide shortages in supply that will drive silver to exceed the 1980 high.For the last 20 years the demand for silver has outstripped the diminishing supply.Silver miners and recyclers have been unable to meet the yearly demand so the government has made up for the deficit by depleting their own stockpile.According to U.S.Geologist, silver will be the first element on their periodic table to become extinct.Geologist estimate that we could run out of above-ground silver within a decade, by the year 2020.This would make it increasing more expensive to mine the limited under-ground reserve, while it also guarantees the future price of silver will rise tremendously due to lack of supply and growing demand.Silver is irreplaceable due to the abundance of industrial uses in everything from mirrors, electric conductors, solar panels, batteries, technology, cell phones, photography, dentistry, electronics and computers--to coins, silverware and jewelry.In addition, silver compounds (Ag) kill bacteria in external wounds and create life saving medicines, antibiotics and disinfectants.The world as we know it today can not exist without silver.Yet few are aware of the scarcity and rarity of this truly precious metal.GROWING INVESTMENT DEMAND Although silver has immeasurable uses, it's the growing demand for silver as an Investment that has intensified immensely across the globe.For the first time ever, China has launched an ad campaign encouraging citizens to purchase silver bullion for investment, making it readily available for sale at local banks.India bought 200 metric tons of gold to diversify out-of-the-dollar and is buying silver for both industrial use and as an Investment.Meanwhile, the U.S.Is experiencing difficulty keeping up with the continued, sustained demand for American Silver Eagle Proof coins and has suspended production.Canada is experiencing similar dilemma's.Silver, aka "the poor mans gold" is extremely undervalued and affordable at under $20 per ounce, compared to gold which hovers at over $1200 per ounce.Unlike silver which is consumed, gold is hoard.Therefore most of the gold ever mined in the world within the last 5000 years is recycled and stored in vaults at central banks.They are notorious for hoarding the gold then selling it back into the market place to depress the price.Gold has no industrial or medical value and is solely used as a storage of wealth.The price of gold is currently at an all time high and is also positioned to rise a good deal higher.In contrast, the low price point of silver make it more accessible to the average person who can gain substantial returns on their investment while also protecting their purchasing power.The affordability factor is one of the main reasons people around the world are gaining entry into this exclusive market.These days silver is not simply for the "poor man", the rich are also investing in silver! Jim Rodgers, an American Investor who made his first millions buying low and selling high, BUYS silver because it's 60-70% below it's all time high and is much more depressed in price than gold or any other precious metal.Warren Buffet, the largest silver Investor ever, bought 130 million ounces of silver in 1997-98 and is rumored to have sold it to the Silver Exchange Traded Fund (SLV) in 2006.As the currency crisis worsens worldwide, more people are becoming aware of the history of fiat currencies and how they have all completely failed over time.As seen in the U.S.In 1781 when the Continental currency collapsed and ceased to circulate as money and most recently in 2008 when the Zimbabwean currency collapsed.Black market trading in precious metals was common practice before the Zimbabwean dollar was replaced with foreign currencies.The economies of Portugal, Italy, Ireland, Greece and Spain (PIIGS) are especially at risk due to increasingly high levels of government debt and deficits relative to annual GDP.This has resulted a credit rating downgrade, devaluation of currency and chaos in the streets.A revolution is well underway in Greece as citizens galvanize to protest the government's pay freeze and taxing the middle working class people who refuse to pay government debts ($53 billion euros) out of their own pocket.Some Economist predict the future of the U.S.Will be the same.Rising U.S.DEBT For first time in history on June 3, 2010, the US National debt clock reached a staggering $13 Trillion dollars and has no end in site--just more spending on unfunded liabilities, stimulus packages and bailouts in the Trillions.It's hard to comprehend the amount of $1 Trillion dollars, let alone 13 Trillion, but here's a note worthy perception.If President Bush could spend $1 million dollars a day from the day Jesus was born until now, he would only have spent about three quarters of a Trillion.And if President Obama could spend $1 every second since the time human beings first starting using stone tools and fire, he'd have to spend money for over 412,000 years to get to $13 Trillion.This is chilling when you consider that fact that in 2000 President Clinton had the largest U.S.Surplus ever of $230 billion dollars, with nine consecutive years of budget improvements.Yet, within the last 10 short years the U.S.Has gone from hundreds of billions in surplus, to being the largest debtor nation in the world.Debt continues to rise at the most rapid pace in U.S.History.It's estimated to rise to 19.6 Trillion by 2015.This is simply unsustainable.Rapid increases in the money supply historically have caused inflation, leading to hyperinflation, followed by the return to hard money (silver and gold).When the circulating currency becomes excessively devalued, as what's happing with the U.S.Dollar, economies revert to hard currencies and barter.The hard currency of choice will be one that the people can afford--silver.Which has outlasted all paper fiat-currencies.THINK AHEAD Although we have little control over government spending, we can make better informed decisions with knowledge and access to resources.Anyone with a basic understanding of economics and fiat currencies can grasp why the price of silver will explode.The best plan of action is to do just that--ACT by converting fiat currencies to real money (silver) that can not be created with the stroke of a pen or by powering up the printing press.There is a flight to sound money and as with any investment, time is of the essence.The lack of U.S.Media coverage on the Silver Revolution can be your chance to capitalize off this small niche industry before the masses become aware of this rare investment opportunity.Even a minute fraction of the 6.8 billion people in the world becoming consciously aware of the growing demand for silver would cause a dramatically redistribution of wealth into the hands of owners of the physical metal.Other countries have been given a heads up and I think it's time for America to wake up! Get out the rat race, fiat-paper chase, slave-to-debt syndrome and protect yourself against reckless government spending and debasement of currency.Silver has increased in value over the last 10 years and continues to rise.Whereas the U.S.Dollar has declined since 2006 and has perpetually plummeted for the last 100 years, losing over 95% of it's value.Together China and India (Chindia) make up 40% of the world's population with knowledge and access to Silver.While Mexico, 5 % of world's population, is fortunate to still hold silver in their coined currency.But what about the U.S.! Don't hold your breath waiting for mass media to shed light on this growing trend.Monopolized corporations with vested interests have ulterior motives for keeping the masses in the dark.It's up to you to do your due diligence, research and act.Either way the Silver Revolution is well underway whether you're on the boat or not.Your ability to maintain purchasing power will be critical during the inflationary environment a few short years ahead.Savvy investors are refocusing their attention to precious metals such as silver, as a safe haven and hedge against currency debasement, inflation and uncertainly.It's only natural that we prepare for a flight to safety.HISTORY ALWAYS REPEATS When we study history and not propaganda it becomes evident that history always repeats.Just think.If history repeats itself we could see Silver rise 2,400%, as done in 1970-1980 when the price of Silver went from $1.50 per oz to $50 per oz, a 25-fold increase.The average price of Silver in 2001 was only $4.If Silver were to have another 25-fold increase, the result would be Silver rising to over $110 per ounce.Robert Kiyosaki and Michael Maloney authors of "Guide to Investing in Gold & Silver", predict that Silver could rise extraordinary to $1500 per ounce if history should repeat and Silver and gold equal the same amount of money needed to pay off U.S.National Debt, as in 1934 and 1980.The average price of Silver in 2010 is currently under $20 per ounce making silver the best bang-for-the-dollar this decade! In percentage terms silver will perform better than gold.The price of Silver will inevitable skyrocket and those that own the physical metal will be in the game.Those that don't will watch the spectacle from the sidelines.The best way to invest in this precious metal is to buy.999 Fine Silver coins, bars and bullion.Remember "If you can't hold it, you don't own it" so make sure you take physical possession of your silver.No exceptions.
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