Part of my humble Blog features/ endeavors to 'educate' and teach people some interesting and useful things that can enhance our knowledge, culture, reality, and relevancy, of life on Earth. You all know that I am fond of History, and there fore, the 'Pure History' of the KJV Bible ! I hope that my attempt to teach the 'history of Coins' --- their value, and good places to invest in them will help you all. As I have always said [and all real experts, too....]. "Paper money is ONLY as valuable as the treasures and Treasury of that Nation, can back up with Precious Metals !" And right now, we all fear that the true amount of Gold and Silver in the United States Treasury.... is nil, if existent at all ! We OWE Germany, for example, hundreds of TONS of pure Gold, but we are unable to pay them back, and they only have our 'promises.' Well, that certainly doesn't inspire confidence, does it ?
Our Silver Forecast is BullishHistorical precedent coupled with current fundamentals point to the likelihood of an explosive super spike in the silver price and a high price plateau beyond that. In the last super spike in 1979, the white metal went from $6 per ounce, to over $49 just 12 months later. In other words, that's an incredible 700% upsurge over the course of a single year! Today, industrial demand will continually increase along with its investment benefits. These factors will cause the price of silver per ounce to reach new highs, or possibly another huge spike similar to 1980. Let's look at additional factors why we're bullish on the poor man's gold:
U.S. Debt Level Reaching Tipping PointThe U.S. is reaching record highs in debt and the tipping point may come sooner than later. In 1980, the national debt was a mere $930 billion. Today, it's over $18 trillion officially, with tens of trillions more in "off budget" debts and obligations accumulated in the last 40 years. The Federal Reserve's balance sheet now tops $4 trillion, with no end in sight to ultra-accommodative policies.
Above Ground Silver Inventories Are DiminishingIn 1980, available above ground stockpiles were estimated to be 4 billion ounces. Today, many estimate these stocks at less than 1 billion ounces. And annual consumption has exceeded supply in many years. As industry finds new ways to use silver, the market could experience a long-term supply deficit, and inventory depletion would then accelerate.
Silver Mining Production Appears to be Reaching Its PeakThere may be 18 billion ounces of extractable silver left according to the according to the U.S. Geological Survey. If this is indeed the case, there won't be enough supply left due to the steady increase in demand. Just last year, the demand rose to a record 1,081 million ounces according to The Silver Institute's World Silver Survey 2014. While the demand rises, production has increased less rapidly. So not only are we running out, the supply is diminishing faster than ever.
Global Silver Demand is High and Getting HigherConsidering the record growth in demand last year, all signs are pointing to a continuous increase. In 1980, the world population was 4.6 billion. We've since added another 2.5 billion people. Silver is required in a multitude of industrial, electrical, consumer, health, and energy-related applications critical to today's modern economy. (It is the world's best conductor of electricity and heat, best natural biocide, and best reflector of light.)
Unlike other metals, it is consumed in very small increments, making recycling very difficult. In other words, once it is used, it is usually gone forever, practically speaking.
At the same time, it is generally an incidental cost in the products that use it – such that a dramatic increase in the price will not necessarily cause substitution. A hint of shortages could cause industry users suddenly to hoard the metal and drain remaining available inventories.
- Investor demand is surging. From 1990 to 2005, investors had been net sellers of silver. In 2006, we witnessed what appears to be a major sea change in the market. The public again became net buyers. In 2014, demand for American Eagles soared to a record-high of more than 44,000,000 coins – a number that would surely have been higher if demand had not completely overwhelmed the government-run Mint's production capabilities at times. Other government and private mints around the world have been cranking out coins, rounds, and bars at record-setting levels.
- The gold / silver ratio is currently around 70, which suggests silver is vastly undervalued. The ratio of silver to gold in the earth's crust is 17.5:1 – and the price ratio has hovered in that range for most of recorded history (see graph). If history is any guide, the remaining bull market in precious metals could see silver outperform gold by a factor of 4 or more.
- Save for recent decades, silver coins have been used as money throughout human history and is in the process of reassuming that role. As faith in government fiat money (such as Federal Reserve notes) diminishes, savers and investors worldwide are embracing gold and silver as a store of value. Savvy investors are paying more attention to the declining purchasing power of the U.S dollar than ever before.
Silver as an InvestmentIs silver a good investment? Wise investors are buying silver to preserve their wealth for the future. The white metal has become a viable part of a robust investment profile. Precious metals such as gold bullion are used to accumulate wealth and hedge against inflation.
Discover the reasons to invest in silver and how this popular commodity can be purchased.
Why You Should Buy SilverSilver is unique because it is considered both a commodity and currency, depending on how it is used. Precious metals, such as gold and palladium, can be purchased to guard against inflation. While any investment is a risk, silver has been used for centuries for a variety of purposes. Industries rely on it, making it a solid investment choice. As a vital industrial and monetary metal, it has value around the world, regardless of economic conditions. It can be sold at current market prices as needed. An investor can buy it in basic forms such as bullion, bars, coins, and rounds. Investors typically purchase it by weight, such the troy ounce, pound, gram or kilo. It is priced by its weight in .999 fine silver. If an item contains lower purity levels, it may fetch slightly lower prices per troy ounce of the .999 silver it contains.
Silver CoinsSilver coins are possibly the oldest type of coinage in history. The use of these coins for trade dates back to the drachma used during Greek times. A collector purchases coins as a hobby and these coins may or may not have value. Coins sold by weight are purchased to store financial value for the future. Consider some of the products from which buyers can choose:
American Eagle CoinsThe American Silver Eagle coin is as well-known as the famed gold Krugerrands minted in South Africa. As legal tender coins, they can technically be used as currency as well as for investment purposes. The United States government mints American Eagles as an investment. They are also collectibles that can be used as a reward, gift, or incentive. Each American Eagle contains, at least, one troy oz of 99.9% pure silver. The notable design on its obverse is based on the “Walking Liberty” half dollar created by Adolph A. Weinman in 1916.
Canadian CoinsOne of the most common Canadian coins is the Silver Maple Leaf. Each year, the Government of Canada issues the Canadian Maple Leaf bullion coin. It is also legal tender, with a face value in Canada of about 5 Canadian dollars. The market value is determined based on the current spot price. The standard coin weighs 1 troy ounce and contains 99.99% silver. The obverse side of the Maple Leaf features Elizabeth II. The reverse has the Canadian maple leaf.
Australian CoinsThere are two major types of silver bullion coins from Australia. The Kookaburra has been produced at the Perth Mint since 1990 and is minted of .999 fine silver. While the obverse always features Queen Elizabeth II, the reverse features a different kookaburra bird each year. As a result, these coins may have a slightly higher collectible value than some other bullion coins. They are available in four sizes, ranging from one troy ounce to 1 kilogram, with face values from $1 to $30.
The Australian Kangaroo is minted by the Royal Australian Mint. They have legal tender value in Australia and the design changes annually, which also gives them more numismatic value than other bullion coins. Introduced in 1993, the Australian Kangaroo is a one troy ounce bullion coin. It is issued as both an un-circulated bullion coin and a so-called “proof” coin.