Maybe you have heard the commentators on radio or television talking about gold and silver as a hedge against inflation. Both metals have been used as money and as a store of wealth for over 6,000 years, but did you know that silver has some very rare qualities. Silver is one of the most interesting metals, if not the most interesting metal. Most people do not know it, but silver is necessary for most of the electronics, solar panels, batteries, medical devices, and antibacterial applications today.
It’s important to note that silver is a precious metal due to its rarity, but it is also used as an industrial metal as listed above. What makes silver so, so very special is that at the rate it is being used now it will be gone by 2020. Does that sound crazy? If so, that is a statement taken from the USGS (United States Geological Society).
Gold is a precious metal as well, but gold only acts as a store of wealth. It is used very little in industrial applications. So, what makes silver such a great investment besides what I have talked about? Well, silver is only about $16/ounce right now! That is an absolute steal considering that historically it has taken about 15 ounces of silver to buy one ounce of gold. Right now that ratio is at about 70 ounces of silver to buy one ounce of gold. So, the ratio is way out of whack and must go lower.
Many experts state that the silver to gold ratio should be about 10:1. In other words, there should be about 10 ounces of silver in the ground for every one ounce of gold. The ratio is now 70:1, and it is only kept this way by market manipulators. Once the manipulation ends, silver will skyrocket. What’s more, the amount of silver being used for industry has been increasing year after year due to the demand for electronics. China, India, and other nations who are industrializing are putting a huge demand on the already over stretched silver market.
Many economists believe that silver should now be around $100/ounce. Future price predictions by some experts put silver at $500 and even $1,000 per ounce. Those predictions are on a mid term basis of about 3-5 years out. If you are an investor and you want to maintain your wealth during a historic period of inflation, or you would like to profit from the silver market, now is your chance.
The public is kept out of the dark when it comes to the shortage situation in silver. Most people who were called crazy 10 years ago for saying to buy silver are now being praised for it. After all, in the year 2,000 the silver price was around $4.00, and is now about $16.00. That’s a nice return, but it is nothing compared to what’s in store!
Source by Garrett L Strong
Is There a Silver Shortage?
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