7 facts about Silver

Why Silver stacks up…

I am sure you’re familiar with the expression follow the smart money. So where is it going? Did you know HSBC and Barclays have been acquiring huge amounts of precious metals? Are they doing this on a whim? Well of course not. They know that as commodities go, it’s about as hot as it can get. It is not just HSBC and Barclays, JP Morgan have also increased their physical holding of silver from 5 million to 55 million ounces, which I am sure you’ll agree is a massive commitment.

Currently silver is being consumed by the tonne in an explosion of industrial uses with demand at a 3 year high. China produces silver and also consumes it, in fact 70% of the worlds industrial silver is bought by China. India too has a vast appetite and intends to buy 22% of all the ‘Industrial silver’. India also has plans to increase its ‘Investment silver’ to 44%! As a species we get through 69 tonnes of the stuff every day, and if that’s not staggering enough, of the 50 billion ounces recorded in history only 5% remain in above ground inventories!

This all points to a growing world shortage and whilst none of this has affected the price of silver yet, at our present rate of consumption and ever diminishing supply there’s an inevitability about where it’s all heading!

Remember physical silver has no counterparty risk, unlike other financial investments.

  • Silver is hugely undervalued
  • Anyone can invest/collect in the form of bullion coins or bullion bars of different weights
  • Silver’s value rises with inflation
  • For many years now our consumption of silver exceeds our yearly mined output for products including; mobile phones, medicine, Radio Frequency Identification (RFID) tags and passports to name but a few!
  • Silver’s now more rare than gold as there is less of it on the planet
  • Of the 50 billion ounces mined in history, only 5% of this exists in above ground inventories which can be bought and sold
  • Silver is money in its purest form

Get the picture …its ever rare status will only go one way in the longterm… UP! Silver’s dual path of both precious and industrial metal makes it a great two way bet. With economic growth, industrial demand rises and when demand falls, it makes a good hedge fund. Being an ever rare metal, any coin or round struck in silver should always have a steady and intrinsic value in years to come.

To end with here’s a point of view from celebrated pundit Ted Butler;

“I own silver because I feel it will perform better than any other investment I am aware of, including gold. Although I am not driven by a desire for money at all costs; I am convinced that if you are going to make an investment, it should be the best investment possible. Quite simply, I believe that silver will make more money, by far, than any other investment almost regardless of future circumstances.”

Take the first step to see if silver as an investment could be right for you.

If this has been of any interest or help please share. And as usual your comments are always welcome!