Gold and Silver

  • Known as “the poor mans gold”, Silver is more affordable and useful in smaller units, as real money, than Gold.
  • Silver has had more patents issued with its use than all other metals combined.
  • Silver is a very good natural biocide and is now being used in clothing and food storage containers like Tupperware because of that property.
  • Silver is the second most malleable metal next to gold, the most reflective and the best electrical conductor of all metals.
  • Silver is widely used in industrial applications as a conductor, RFID (radio frequency identification chips) for inventory and tracking, nano technology and surgical equipment where the biocide and super conductivity qualities are needed.  Photography was the largest industrial use but is declining due to digital photography.
  • Silver has replaced lead in solder for both Europe and the U.S.
  • Most industrially used silver is used and effectively destroyed because it is not recovered and ends up in landfills….Permanently lost.
  • There is an estimated 20 billion oz. of above ground silver that can be accounted for by coinage, bullion in storage, flatware, jewelry, religious and artistic objects.  There is an estimated 9.2 billion oz. of gold above ground (an estimated 90% of all gold ever mined is still in existence). 2.17 : 1 ratio.
  • The 800 year price ratio of silver to gold is apx. 16:1 (1980 $50/$825), in 1913 18:1. Today the current price ratio of silver to gold is 59.1 (3.75 X the historical average).   The Gold/Dow ratio is now 9.6:1 (was 44:1 in 2000)…..yes, the Dow is down 78% in gold terms, over the past 9 yrs.  Do you think precious metals are a risky and dangerous investment?   Gold is up 33% and Silver up 57% over the past year….what else is?  Incidentally, in 1933 and 1980 1 oz. of gold equaled 1 share of the Dow (825 Dow, $825 gold in 1980).  A regression to the historical mean sounds just right to me.  You see, gold and silver are resuming their historical role as real money and wealth and still have a long way to go….particularly silver.  Precious metals cannot be printed or digitally produced.  You have probably noticed the obscene amounts of un-money being created for our Special Olympic economic model “no one loses and no one fails”, with bailouts and monetary stimulus to and from the ends of the earth.
  • Oil is up 700% from 1999 (after a recent 73% decline).  Uranium +500% in 6 years.  Molybdenum +400% in 5 years.  Gold +294% over 9 years and Silver +317% over 7.5 yrs..  You see, gold and silver are way behind and as fiat currency of all kinds becomes inflated into oblivion these laggards will become what they have always been….a measure of value and store of wealth – real money.
  • If the current volume of fiat dollars was converted to gold it would exceed $50,000 per oz.
  • There was a 17 consecutive year shortage of silver production until 2007.

1971 when Nixon closed the gold window and abandoned the gold standard, the U.S. had in excess of 2 billion oz. of silver reserves.  The U.S. Treasury now has none and the U.S. Mint has to purchase the silver in the open market to mint their silver eagles.

Crediit :http://www.marketoracle.co.uk/Article13807.html