What Our Society Knows About Silver
The History of Silver
In his 1982 book “Silver Profits in the 80’s” Jerome Smith predicted that within our lifetimes, silver could very well be worth more than gold. Smith had this to say about his amazing predictions: “In 1972, when I wrote the results of a five-year study of silver in a book that has since been regarded as ‘the bible’ on silver, I said that in the coming decade, silver would double in price and then double again. Only a few of the many who read that in the early 1970’s believed me. And I was wrong… Instead of doubling twice, it doubled three times over on an annual average price basis!”
Here is a brief history of silver:
April 25, 2011: Spot silver rose to $48.84 an ounce and U.S. silver futures to $49.82, highest since 1980.
2010: Spot silver rose to successive 30-year highs, and prices gained more than 80 percent, outperforming gold.
1997: In 1997 and 1998 Warren Buffet bought about 130 million ounces of silver.
1988: The Hunt Brothers were charged for conspiracy to corner the silver market, and fined $134 million in compensation to a Peruvian mineral company. The brothers declared bankruptcy.
Jan 18, 1980: Silver hit an all-time high just below $50 an ounce, when gold prices also rose dramatically in response to the Soviet invasion of Afghanistan. Silver prices dipped to about $15 an ounce by the end of that year.
1973: The Hunt Brothers, sons of the late Texan oil tycoon Haroldson Lafayette Hunt Jr, began cornering the silver market.
1965: The U.S. government eliminated silver from quarters and dimes, and half dollars were reduced to 40 percent silver.
1946: The Silver Purchase Act of 1946 rendered the U.S. government the biggest buyer of silver in the world. The Act also bound the government to sell at a fixed price.
1934: In accordance to the Silver Purchase Act of 1934, U.S. President Roosevelt issued executive order No. 6814 to confiscate and nationalize silver, and outlawing private ownership of quantities more than 500 troy ounces. (from Reuters.com)
As you can see above, in 1980, silver climbed as high as $50. In 1982, Smith predicted the price of silver to be in the $100-plus per ounce range by 1985, which did not happen because of the Hunt brothers manipulating silver prices- briefly explained above. Smith based this bullish conclusion on five primary causes:
- Industrial demand for silver was exploding.
- Mining production of silver was less than consumption.
- Silver production couldn’t be greatly ramped up because 75% of new silver came as a byproduct to base metal mining.
- Since silver was used in such small amounts in its many applications, a price rise in silver would not reduce the demand.
The government had sold off most of its two billion ounce hoard in a way that kept the price down. Now that it was gone, free market forces would re-establish the true price at much higher levels. Read more HERE
Those same 5 standards still hold true today, in 2016.
Where We Are Today With Silver
Now, more than ever, silver has a number of primary causes for extreme bullishness. We are likely on the eve of a critical shortage, however the price does not reflect that. This shortage has been camouflaged by an artificially low price brought about by leasing, and by the big Eastern market makers’ chokehold on silver in the futures market. This is why silver expert, Ted Butler, says that silver offers the greatest opportunity for gain that most people will ever have. Usually a shortage is made visible by the price. Not this time. Today’s silver price signals nothing. We will run out of the world’s most crucial metal without any warning (except from Ted Butler) and the price will have to explode. The silver shorts and the silver users will be blindsided.
One thing that makes a big difference that no one anticipated, is the huge increase in demand from India and Asia for consumer products that use silver (electronics, appliances, autos, etc.) This skyrocketing demand means that the deficit between silver produced and silver used will remain a problem into the future and aggravate the coming price rise. Furthermore, the booming growth in world populations means that, by definition, this metal, so critical to modern civilization, will be utilized all the more.
Nor did anyone anticipate that the U.S. government would sell off every last ounce of the billions of ounces of silver they once owned, including the 100 million ounce stockpile for military and strategic purposes.
Silver is the strongest it has been in 15 months and continues to climb!
What You Need to Know About Silver NOW
Silver’s natural properties make it…
- the most reflective metal on Earth.
- the most electronically conductive of all metals.
- the most thermally conductive of all metals.
- naturally anti-bacterial.
- very soft and malleable, only slightly harder than gold.
Some Reasons for Silver to Skyrocket
Here are some current reasons Silver is doing so well:
- News of a manipulative silver-fixing scheme headed by large multinational banks was revealed mid-April of this year. Consequently, many are wondering what the long-term ramifications of the story will be. Read more HERE. To further this story, it should be known that a class action lawsuit seeking $1 billion in damages has just been filed on behalf of Canadian investors against the banks. I would encourage anyone living in Canada to learn more about becoming a plaintiff if you have suffered any material losses since 2000 in the precious metals market. Read more HERE
- Another current reason behind the current hike in silver is believed to be because of the Bank of Japan’s decision today to maintain negative interest rates. The central bank of the world’s third-largest economy also signaled that further easing is not out of the question. Read more HERE
Here are some on-going reasons Silver is expected to do even better:
Silver has a unique set of features that make it a different investment than gold:
- Its elemental properties give it greater industrial applications
- Its use as coined money throughout history far exceeds gold’s
- Unlike gold, most industrial silver is consumed or destroyed after use. That’s because it’s just not economic to recover a tiny flake of silver from millions of cellphones, casino chips, and batteries. So the quantity of supply that returns to the market via recycling is limited.
- New applications for silver are discovered almost daily! For instance, the solar industry has grown dramatically worldwide—and it uses a lot of silver. According to BSW-Solar Association, photovoltaic capacity will quadruple by 2020.
And the Silver Institute projects that industrial demand for silver will outpace global GDP growth. The need for silver is BIG!
Silver Predictions for 2016 and Beyond
According to SilverDoctors.com, Silver is likely the most undervalued asset available to investors today, and it is believed to go up to $50 or more per ounce in 2016.
Silver prices as of April 28, 2016, are trading at their highest level since May 18, 2015- near $17.60 per ounce. And Investing Specialist, Peter Krauth, sees silver prices gaining even more momentum in 2016. In fact, he sees the price of silver posting double-digit gains by the end of the year.
The 36 months that followed the Crash of 2008, saw precious metals go to new highs with silver topping out at $50 per ounce. Today that same ounce is selling for around $14. Whether you acquire the physical metals directly or diversify your investment portfolio, now is the time to capitalize on the future trend.
As the next crisis and eventual collapse of our economic system plays out on the global stage in the coming months, trillions of dollars in wealth will be vaporized. But, as is always the case throughout history, those who have the forethought and willingness to first acknowledge the realities and then prepare for them while others ignore the warnings will come out on top.
What You Can Do To Prepare
Investors who buy silver and gold for survival purposes fear the worst. Those fears include the Federal Reserve printing so many dollars that the dollar will become worthless, which is the history of all paper currencies that are fiat currency and not backed by anything, such as the U.S. dollar. Fear of a financial meltdown, which would close banks, such as what happened in Argentina and Paraguay in 2002, is another.
Argentineans and Paraguayans who had to foresight to bail out of the banking systems and convert their assets to gold or coin silver were protected. Not only did the banks close, but also when they reopened depositors were limited in the amount of money they could withdraw. Meanwhile, the Argentinean peso and the Paraguayan guarani sank in value. Shortly after those crises, Brazil defaulted on its international debt and its paper currency, the real, also sank. Many believe the U. S. Dollar will do the same.
Those are the kinds of situations that investors who buy coin silver and small gold coins for survival purposes want to protect against. In doing so, these investors buy silver and gold in forms that can be used for money or to barter for goods and services.
But, what happens in the interim? After the dollar collapses and you can’t even buy a loaf of bread for hundreds of dollars… but, the stores also are not yet prepared to accept silver or gold bullion? Where will that leave us? We have a great solution! Many have already found out about BitGold and Perpetual Assets.
BitGold and Perpetual Assets are the perfect solution for the interim. I’ll briefly explain how it works, but please click the links in this article and learn more. With BitGold, you buy gold bullion with U.S. Dollars or bitcoin. If you choose to buy Silver, go to Perpetual Assets. In both cases, the bullion is sent to a physical vault in a location of your choice, with your name on it. It is then placed there and following the market, will give you gains or loses. You can choose to take the physical gold or silver out of your vault at any time and it will be over-nighted to you. But, here is the really cool thing! While the precious metal of your choice is being held in the vault, you will receive a debit card. It looks just like any other bank debit card, but it is a pre-paid card- backed by the precious metals in your vault. You can use that debit card just like any other, but you are not using U.S. Dollars, you are actually spending silver and gold, but the merchants don’t even know it!
Here is another protective benefit. When the other economy collapses happened in other parts of the world, the banks closed. No one could get to their money. Guess what? Your gold is not in a bank. You can use your debit card at any ATM machine and take up to the entire amount of gold or silver that you have out, in U.S. Dollars. That would help in an emergency when others have no way to get to any of their cash. Of course, you wouldn’t want to cash it all out at that time, because that would mean very soon, the U.S. Dollar will be worthless, just as real, the peso and the guarani in the recent years.