When I first had the thought to start a home business it was deciding what to venture into to secure my retirement future. I discovered why I ought to buy silver & protect myself from the approaching devaluation of our currencies, it still took me a few months to act because there is a lot of misinformation surrounding this precious metal.
When I first had the thought to start a home business it was deciding what to venture into to secure my retirement future. I discovered why I ought to buy silver & protect myself from the approaching devaluation of our currencies, it still took me a few months to act because there is a lot of misinformation surrounding this precious metal. This article will help those that are still uncertain about purchasing silver by laying out the facts about what has been dubbed as perhaps the greatest investment opportunity of our lifetime. In case you are being attentive you will have noticed that gold has been increasing steadily in value since the beginning of the last decade. This trend is set to continue throughout this decade as smart investors recognize that gold is a protection against inflation & the destruction of the purchasing power of all currencies. If gold is set to rise, then should not you be purchasing it? Perhaps, but lots of people think that silver is a much better profit opportunity due to some astonishing essential reasons.
(1.) The Gold-Silver ratio: Throughout history the ratio between gold & silver has been in the range of 12:1 to 16:1. What this means is that for every ounce of gold you would be able to exchange it for 12 to 16 ounces of silver. This was usually the case because there is about 12 to 16 times more silver in the earth’s crust than there is gold. Although this ratio has remained constant, the current ratio is 50:1. With ounce of gold you can currently buy a whopping 50 ounces of silver. What this means is that silver is currently undervalued compared to gold. As gold gains in value over this coming decade, silver will gain even more as the ratio of silver to gold reverts to the mean. This provides a giant profit potential for those that are informed. Here is a lovely resource to learn more about this ratio – Silver to Gold Ratio.
(2.) Above ground supply: In 1950 there was ten billion obtainable above ground ounces of silver. By 1980 that number shrank to three.5 billion ounces. Now in 2011 it is estimated that above ground supply has dropped to about 500 million to 700 million ounces. The reason that the supply of silver is shrinking is because it’s become the second most used commodity in our society. Currently there’s around 10,000 applications for silver including but not limited to; electronics, photography, jewelry, mirrors, & solar panels. The only commodity with more applications is oil which currently has about 30,000 applications.
(3.) Non-recyclable: Silver is used in ten,000 applications but all of these applications use microscopic amounts of silver. For example most computers use about 1/10th of an ounce of silver. At $30 per ounce that silver has a value of $3 & is thus not economically viable to retrieve. As a result most silver is not-recycled & is lost to landfills forever. This only places more pressure on the supply side. In conclusion, most people are putting their money in to this precious metal because of the approaching inflation but there’s lots of other reasons for investing in silver such as the reasons listed above.
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