Why You Should Buy Silver – Instead of Gold! (+2K Views)

Lorimer Wilson May 20, 2011 Comments Off on Why You Should Buy Silver – Instead of Gold! (+2K Views) 3,815 Views

Understanding silver is not difficult but ACTING upon your understanding and purchasing the physical metal is PSYCHOLOGICALLY a VERY difficult thing to do. You will always second guess the timing, always be told you are crazy for paying REAL MONEY for a piece of metal and ALWAYS be having to justify your ACTIONS to those who have taken NO ACTION. [Let me explain things further and lay out some sound reason why you should sell whatever gold you currently own and buy silver instead.] Words: 2273

So says Bix Weir (www.RoadtoRoota.com) in an article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted and edited […] below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.) Weir goes on to say:

It’s hard to be an investor in silver for many reasons:

The financial media tells you every day that “It’s In A Bubble” and every day the price swings wildly in the wind as if someone were deliberately shaking the foundation upon which you built your investment decision (wink, wink). Rarely do they ever talk about the fundamentals of supply and demand influencing price. Nor do they talk about silver’s relationship to the mass printing of un-backed fiat currencies.
Your friends and family all claim that they’ve learned the hard way that bubbles pop hard and [warn you that] you should run for the hills and get out of your silver investment [and then there is]…
YOU! That’s right, it’s all your fault! These people KNOW YOU… They’ve ridden your ups and downs and your failures validate and reinforce their ingrained belief that YOU are no different than THEM. If you were to be RIGHT in your assessment of silver from the very beginning it means that THEY were not able to see the same signs that were available to YOU. Many of them have even made investments in Gold but won’t buy ANY silver. So of course when silver went up near $50 you were VERY LUCKY to have gotten in early and when it fell back to $35 you were VERY DUMB to invest in that silver bubble [even though] the truth is that you did your homework and acted upon your beliefs whereas they haven’t yet.

[Yes,] it’s tough being an investor in precious metals but it even goes further these days as it is EVEN MORE DIFFICULT to be an investor in SILVER rather than GOLD! All those “refined and established investors” in Gold have come out of the woodwork during the latest silver plunge and have said “I TOLD YOU SILVER WAS NOT A MONETARY METAL…JUST LOOK HOW FAR IT FELL COMPARED TO GOLD!” The Wall Street Journal even jumped on the band wagon and published this article about Why Gold Will Outshine Silver.

I find it very telling that in the Wall Street article the author lays out his case that the REASON gold will outperform silver is, essentially, that silver went up too high in price and then came down like a crashing tulip bubble. That’s pretty much his whole analysis and argument in the vast gold-silver debate. “Silver sucks because it’s too volatile and looked like a crashing bubble so STAY AWAY!!!” No wonder our friends and family act the way they do. THERE IS NO HONEST REPORTING ON WHAT IS REALLY HAPPENING TO SILVER!

Many Many Reasons To Switch From Gold To Silver!

Below are my reasons – all [29] of them – for owning silver over owning gold [and read this article (1) too!] for those of you [who are] thinking that silver is the wrong place to be. It seems the more the manipulation of silver drags on the longer this list gets!

For those of you who have made the jump into silver I’d ask you to send this on to all those who have not had their SILVER AWAKENING yet. It might help them to “see the light”! [Read this (2) article on the coming silver supernova.]

Due to the tiny size of the Silver market and the lack of physical Silver available to the manipulators, the Silver battle is much easier to win than Gold. Ted Butler’s discovery of massive Silver market manipulation highlights the size, scope and importance of Silver to the current financial crisis.
Central banks have NO physical Silver to assist in the manipulation of the Silver market but they still have a lot of physical Gold (although much less than they claim).
The majority of Silver mined every year is consumed as an industrial metal in very small amounts and will never return to the market whereas the amount of above ground Gold grows year after year.
Due to its low price and superior physical properties, Silver has developed into a vital and necessary industrial commodity that makes it mandatory for modern life. If we woke up tomorrow and gold vanished from the face of the earth, life would continue pretty much as it was the day before. Without silver, modern life would change.
Due to the relative very low price of silver and very high price of gold, the man in the street is in a position to buy silver in much greater quantities than gold.
In various forms there is an estimated 5B oz of above ground Gold and 5B oz of above ground Silver but Gold trades [around] $1500 per ozt. and Silver trades for about $35 per ozt. Both metal prices are obviously manipulated but Silver appears to be manipulated more. As for Silver bullion that is “in play” for the manipulators, I estimate that less than 200M oz. remain with a current market value less than $7B.
Silver has been in a supply deficit for over 50 years! Governments held approximately 10B oz of silver in 1950 and have been supplying that physical stock steadily into the market. Today there is no more of that surplus silver left to sell.
There are only 14 years of known Silver reserves remaining in the world at current consumption rates according to USGS. AFTER THAT SILVER WILL BE GONE FOREVER! Think about it.
Demand for Silver is “inelastic” in its industrial applications because it is used in such small quantities per application. An increase in price does not translate into a decrease in consumption.
The COMEX Silver short position is the largest concentrated short position of any commodity, on any exchange in the history of financial markets. [Read this (3) article for more information.]
Throughout human monetary history the Silver to Gold ratio hovered in the 10-1 range until the invention of futures and options trading in metals. After the massive manipulation maneuvers by the Banking Cabal the silver-gold ratio now stands at over 40-1. [Read this (4) article to find out what effect $3,000, $5,000 or even $10,000 per ozt. for gold would have on the price of silver based on these historical silver:gold relationships.]
As defined in the Coinage Act of 1792, the U.S. dollar is Silver, not Gold, and contains “three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver” according to Wikipedia.
Silver is massively under reported in the media vs. Gold. Even Jim Rogers, the commodity guru, purposefully ignores Silver entirely in his best selling book “Hot Commodities” even though Silver exceeds all other commodities using his metrics on what makes a strong commodity.
Very few investors have physical Silver in their possession. Reasoning: because they claim it is “too hard to store”. Does that mean when Silver trades at over $1,000 per ozt. that people will be more willing to buy and store physical Silver? It is difficult to make up a more bullish argument to take delivery and store physical Silver TODAY…when the Cabal price rigging scam finally fails you can always buy your own Fort Knox to store all that pesky Silver you bought!
Silver’s fundamentals are even stronger than Gold’s so when the gold manipulation stops and the Gold price takes off investors will be looking for the next under-priced investment with similar characteristics.
470M oz of Silver owned by the US Treasury… has been sold into the physical market to support the “Strong Dollar Policy”.
Most of the large deposits of Silver have probably already been found and/or already mined limiting future discoveries because of the fact that Silver mineral deposits, as opposed to Gold, are usually very shallow in the earth’s crust due to the nature of the geology.
There is a significant problem with counterfeit Gold coins and bars because of its high price. Silver coins and small bars have not, to date, had as much of a counterfeiting issue because its price did not justify the effort. (although there is a problem with counterfeit Silver jewelry which may significantly suppress Silver scrap recovery in the future…oddly bullish by-product of counterfeiting Silver!)
The total dollar value of the Silver market is a fraction of the total dollar value of the Gold market.
Retail physical shortages of Silver are already beginning to appear around the world. The list of announced delays/curtailment by Government owned Mints now includes EVERY MAJOR SILVER COIN PRODUCING COUNTRY IN THE WORLD! [See this article (5) on the shortage of silver for coin production.]
Hedge funds are bleeding from the credit crunch and they are looking for ways to save themselves. A single hedge fund can scoop up the remaining physical Silver and blow the price sky high.
In the US, Gold confiscation laws are still on the books but there are currently no silver confiscation laws.
As of early 2011 the Gold price is hovering around $1,500 or 175% of its historical high. Silver, on the other hand, is hovering around $35 or 70% of it’s historical high suggesting that Silver has a long way still to go.
Un-backed paper Silver programs (such as silver certificates and unallocated pooled accounts are the “industry standard” these days and) will be scrambling for metal when redemptions are called in by the investors. The most egregious example of fractional reserve silver is the iShares Silver ETF (SLV).
In the past few years the massive global money creation by central banks around the world has created huge reservoirs of cash sloshing around the asset markets looking for a safe haven. Although most mainstream press have discussed Gold as being a likely bucket to fill with this monetary firehouse, SILVER has all the same monetary metal properties as Gold except the Silver market is SO small it would be like FILLING A DIXIE CUP WITH THE FIREHOUSE!
The CFTC still has an open investigation into the manipulation of the SILVER market that is being conducted not by their investigative division but by the CFTC “Enforcement Division”. Although the final conclusions have been purposefully delayed by the CFTC, the final outcome may finally be the END OF THE 50 YEAR MANIPULATION OF THE SILVER MARKET!…
The growth of emerging economies in Asia will require more and more industrial silver to build out their electric infrastructure and provide a higher standard of living for their middle class. In a global market that has been in a silver supply deficit for years a silver bidding war will result in order to obtain the significant amounts of silver needed…
There are currently multiple class action lawsuits that have been filed against JP Morgan for blatantly rigging the silver market. Given that JP Morgan has previously claimed immunity from legal prosecution because they are an agent of the US Government I doubt the suits will ever be brought to trial…BUT the publicity of them “claiming immunity” AGAIN will be the “silver shot heard around the world”…
Inventors around the world are making significant breakthroughs in the attempt to solve our energy crisis. From fuel cells to solar power to zero point energies that existed only in our imaginations breakthroughs are quickly coming down the pike. Since silver is the BEST CONDUCTOR OF ELECTRICITY in the world it is likely that the most powerful breakthroughs will involve the special properties of silver.

Conclusion

If all the above reasons are not enough for you to run out and buy all the physical silver you can get your hands on then I’m sure there will be new reasons not far off on the horizon because for the last 10 years this list has continued to GROW…RELENTLESSLY!

It’s true that there are “NO SURE THINGS” in life…but an investment in SILVER comes DARN CLOSE! Yes, you’ll have to ride the tidal wave of price manipulation but when the waves die down you will fully appreciate the power and value of SILVER.

Don’t believe the silver haters…load up on physical silver and keep it out of the hands of those who want to control it. Take it home and stick it in your safe. It may be your last chance!

Titles and Links to Some of the Articles Referenced Above:

Should You Have Silver in Your Portfolio – As Well As Gold? https://www.munknee.com/2011/01/why-you-should-have-silver-in-your-portfolio-%e2%80%93-as-well-as-gold/
It Is Time To Embrace the New Refrain “Got Silver?” https://www.munknee.com/2011/02/the-coming-silver-supernova/
Panic Before the Herd and Win-Win with Silver! https://www.munknee.com/2011/01/panic-before-the-herd-and-win-win-with-silver/
Why Silver at $398.52 is a Realistic Parabolic Peak Price https://www.munknee.com/2011/05/silver/
What’s the Best Buy in Silver These Days? https://www.munknee.com/2011/05/whats-the-best-buy-in-silver-these-days/

*http://www.roadtoroota.com/public/597.cfm

Editor’s Note:

The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.

Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.

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