Why Silver Will Outperform Gold!

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

Very few people know why they should even own gold, much less why their money is not safe in banks or the stock market. This article is not directed towards gold, even though I love gold. Silver is the topic of the hour, and that is because silver is a much better investment that gold. Silver will make many smart investors very happy as silver’s true price is soon going to be revealed in a big way.

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, refrigerators, 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 rare than gold and many economists are planning for silver to reach prices comparable to gold and even higher. It only makes perfect sense that a silver explosion is on the horizon. Some silver experts have stated that owning just 500 ounces about 3 years ago could buy you a median priced home in the near future.

Let’s look at the price of rhodium if you are having doubts whether silver could really go that high in price. The price of rhodium has risen to $10,000/oz from a low of $300/oz in the past several years. This really can happen to a metal, and especially silver due to all of the bullish factors.

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.

Source by Garrett L Strong

Why Silver Will Outperform Gold!