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1. Moving
into True Money
Would you convert your labor into depreciating fiat paper or
into an appreciating
tangible asset with intrinsic value?
Silver offers
the opportunity to move into
true money, an actual
store of value, with the potential
for substantial gains in future years
as its current cycle continues. Protect yourself and your family by acquiring silver with intrinsic value and insulate yourself from the wealth destructive policies of central bankers.
In Mike's
words: “Gold and silver
have revalued themselves throughout the centuries and called
on fiat paper to account
for itself.” (Page 202 of Guide to Investing in Gold and Silver)
If history
serves as any reference, we are poised to repeat the accounting of the Depression Era and the 70's which put precious metal holder's on top.
2. The Common Man's Gold
The acquisition of silver is much
more attainable for global populations compared to gold. As silver prices continue to rise, investor’s will further shift away from real estate, stocks, and
bonds.
The affordability
of silver is poised to make it "common man's
gold" as it begins
to make news and involvement
becomes widespread.
3. The Ultimate
Insurance Policy
Throughout the last thousand
years of history, most episodes of printing have
been followed by pronounced
periods of inflation or even
extreme cases of hyper-inflation,
either severely destabilizing the nation’s
political stability or culminating in warfare, dictatorships, or a political
collapse.
A simple glance
will quickly reveal that those
who capitalized off these unique periods were holders of monetary metals such as silver. Even if you believe
these possible outcomes
are improbable, ownership of physical
silver in the event will provide you the opportunity to not only protect your wealth but appreciate it significantly. Like an insurance policy, while the event probability is low, when fire
strikes the benefits largely outweigh the cost.
At the current
silver price level, the cost of insurance is tremendously cheap in relation to the wealth
it would conserve if history does in fact repeat itself.
4. Silver:
Much more than a Monetary
Metal - Industrial & Medical Applications
Unlike gold, silver
has hundreds of industrial
and medical applications and its
usage is on the rise. Silver’s molecular
arrangement and chemical properties
make distinctly unique among earth's elements. In Mike’s words:
“Of all the elements,
silver is the
indispensable metal. It is
the most electronically conducive, thermally conductive, and reflective.
Modern life, as we know it,
would not exist without silver.“ (Page
128 of Guide to Investing in Gold and Silver)
In the last two
decades alone, usage has increased substantially to include an array of electronic and digital products,
medical appliances due to
its anti-microbial properties, and even clothing. Product such as cellphones, cameras, laptops, mirrors, monitors, etc. all contain
trace amounts of silver which is never
replenished or returned
to stockpiles. As our
information age progresses and silver’s
chemical uniqueness is more fully understood, demand for this irreplaceable metal will only
continue to rise.
5. A Dwarfed
Physical Market & Vanishing Inventories
While accessibility
to silver may seem abundant in the flood of paper markets around today, physical markets are actually quite constrained and limited. Physical silver's dollar value is 30 / 1600 or 1.5 - 2.0 % that
of gold’s, while
over 70% of this metal is consumed in practical applications.
The steady
reduction in above ground inventories had been
unique to silver amongst virtually all industrial and precious metals. Above ground supply is merely
a fraction of what it was when silver
hit its all-time high in
1980. Supply continues to be
limited as applications in a broad
range of fields continue to grow.
6. Uncertainties
in Future Supply
The majority
of the world’s silver
comes from nations marked with political
turmoil, labor unrest, and undeveloped economies. Mexico and Peru account for the largest share of production, both of which have fragile political systems and primitive infrastructures to accommodate significant improvements in production.
Several Southeast
Asian nations are also included in this list, and present similar issues with regard to
the consistency of supply.
Geopolitical instability can quickly induce
nationalizations (most recently in Bolivia), labor strikes ,
or poor infrastructures (accounts
for high rates of flooding, fires,
engineering mishaps, etc.) which
can be have significant strains on supply.
7. Emerging
World Demand
China and India represent two behemoth markets where populations have shown a tremendous appetite for gold and silver.
An awakening of emerging market investment demand will contribute
to a new demand dynamic
for physical silver bullion.
Supportive of the monetary aspects are some of the largest untapped markets for consumer electronic and industrial
usages. Within the next decades, demand for appliances and technologies which
require silver from developing nations is set to rise.
8. End of Manipulation
The most evident form of pricing manipulation on the silver
front occurs through the derivative futures contracts traded at the COMEX. The amount of ounces traded on an average day typically exceeds the ounces of investment grade silver available by several factors. In the interview below,
Mike provides us with some insight on the nature of manipulation:
9. The Paper
Funds Exposed
While futures pricing
manipulation gives institutional
banks a means for price suppression, the ETFs and
other paper derivatives have now involved the public in these mechanisms. These instruments funnel demand away from what
would be geared as deliverable silver and into non-redeemable paper in the form of a prospectus or stock certificate.
It is not
coincidental that over
the last decade, dozens
of ETFs, pools, certificates,
etc. which have emerged
are now being marketed for their accessibility and convenience
to the retail investor. Make no mistake, these funds are merely paper and the ETF campaign has been largely successful in placing millions
of novice investors in funds
they truly do not understand. Therefore, acquiring tangible metals and truly protecting yourself is never
more than a few clicks away
10. Gold to Silver
Ratio
Finally, the most
enduring and lasting indicator
of suppression has been the gold to silver ratio. While this ratio has historically oscillated throughout the last 2000 years,
it has always revert back to its historical average of 12 to 1. Consider the tremendous upside potential for a silver investor purchasing silver with the ratio at these levels. The current affordability of silver makes it one of the most undervalued assets in recent history.
 
Mike Maloney
Click here to learn more about ETFs and why Mike only invests in physical gold and silver.
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