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Why You Need to Own Silver Now, Not Later

Smithys Bullion - FINE GOLD AND SILVER
ozcopper

ozcopper

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WHY OWN SILVER THIS DECADE?

[youtube]https://www.youtube.com/watch?v=jEtjVcqL2Bs&ab_channel=SDBullion[/youtube]

Silver bullion currently offers an asymmetric bet, a proven store of value with a limited downside yet very high potential upside valuation gains to come.

Full disclosure: we both privately buy and save silver bullion ourselves for the long term while also creating one of the United States' largest online silver bullion dealerships.

We have securely delivered silver bullion to hundreds of thousands of customers' doors and to their fully insured non-bank bullion depository accounts for nearly ten years.

Be it for private wealth preservation or an Individual Retirement Account, we are about to quickly cover some key reasons to own silver bullion this decade.

#1 Silver is Still A Store of Value Money

#2 Silver is Historically Cheap

#3 Increasing Industrial Applications for Silver Demand

#4 Silver is Critical in Technology and to Foster a Cleaner Environment

#5 Government Central Banks will Inflate Fiat Currencies Away

#6 Bubbles in Nearly Every Asset Class

#7 Silver Has Been Systematically Value Suppressed

#8 Increasingly Silver is Being Bought as an Investment

#9 Fear of Loss Will Stampede Away All-Time Greed

#10 Silver Bullion offers Peace of Mind

It's a backtested proven fact that throughout this entire fiat currency era, owning a prudent bullion position along with stocks and bonds has been a successful strategy: https://www.linkedin.com/pulse/10-gol...

WHAT is TAKES to Be a SILVER WHALE: https://youtu.be/gPkMl1TFLiU

 
SO mean. I"m way down the bottom of that list.

Good news though. I'm on the list (probably on a lot of lists .. hang on there's a knock at the door :eek:)
 
In the video they talk about silver being heavily manipulated. I believe Silver and Gold are some of the most "managed" markets in the world, but the focus is always on manipulation via the Comex, or ETFs.

It struck me a while ago when I was looking at the silver surveys and observed the (sometimes massive) supply deficits over the years. You could not possibly suppress the price in times of deficits, unless you had stockpiles of silver you can use to supply the market - Free-market forces would take hold and prevent that from occuring for any extended period of time.

The silver surveys show "government sales" being listed for decades - all the way up to 2015. I think the below quote from president Johnson upon signing the '1965 coinage act' is very telling as to what these sales were used for...

"If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content."

He also made these remarks about why they needed to remove silver from coinage:

"Now, all of you know these changes are necessary for a very simple reason--silver is a scarce material. Our uses of silver are growing as our population and our economy grows. The hard fact is that silver consumption is now more than double new silver production each year. So, in the face of this worldwide shortage of silver, and our rapidly growing need for coins, the only really prudent course was to reduce our dependence upon silver for making our coins.

If we had not done so, we would have risked chronic coin shortages in the very near future."

https://www.presidency.ucsb.edu/documents/remarks-the-signing-the-coinage-act

I have attached a screenshot from one of the silver surveys showing government sales perfectly corresponding to the supply deficit each year.

Some of the government sales have reached 100 Million Oz's+ some years. So it was the presence of massive aboveground available stockpiles that allowed silver to be "managed" so effectively over the years, which begs the question, was/is the price truly manipulated?

If there's always enough silver to supply to market, and demand is always met, what would make the price increase?

SPECULATION - something which I believe the Bullion banks are primarily attempting to suppress.

PRODUCTION COSTS - The cost of mine production + scrap metal refining - These serve as a floor to the silver price.

What's particularly exciting for me, is that "Government Sales" haven't been recorded on the silver surveys since 2015 (they don't even list them anymore). We mine Silver at an 8:1 ratio to Gold and, with all their "managing/manipulation" of the silver market over the decades, they've allowed the price of Silver to distort to such extreme levels relative to Gold (currently 80:1).

I personally believe SLV was setup to make the most of the remaining government stockpiles, to further the management of the silver price. I think their holdings (along with the Comex) are some of the last available aboveground stockpiles around to keep the price "managed".

Have a look at the below 'Transparent Silver Holdings' graph as it corresponds to supply deficits in 2010-2011 - 2014-2015.

https://www.silverinstitute.org/all-world-silver-surveys/

With declining ore grades, increased cost of production and depleting mine reserves, I believe we only have a maximum of 10 years before the overstretched Silver Slingshot finally lets go, assuming mine supply and global demand remains steady. Heck, I think it could happen in 1-3 years if physical investment demand + industrial demand spike up considerably.


 

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I'm hoping that the wheels on the disaster that the Western World has become will stay on for a little while yet. I'm debt free (except mortgage which in the current market not crazy) and I'd like to rebuild my Gold and Silver stack.

I'm 100% on board that the market is rigged. Those rigging the market have their own (evil / selfish) reasons. We've just got to do the best we can with what we have in the time we've been allotted.

 
I personally think silver is the best vessel to be in, but only if you have realistic long-term expectations.

It suits me perfectly because I use it as a long-term savings plan, superannuation fund, speculative investment AND a hobby with collector pieces. Hell, I even make colloidal silver and inhale + consume the shit occasionally.
 
Silver is not just silver.

As we have learned from many years, silver just isn't silver; perhaps it's a good idea to hedge your silver by diversifying just as you don't put all your eggs in one basket, it's probably a good idea to have different nomenclature of silver products consisting of bars and coins of varying sizes.

If you just buy bars, you are relying on the spot price to make a capital gain.

If you buy coins, you might be lucky enough to buy coins that attract a numismatic premium.

But what to buy?

These days, even if you want to buy products from the mint, you may be restricted buy how many you can buy, that's if the product is available. The Mint delivery fees are very expensive although the packaging is top notch.

As we know, Perth haven't had the popular, 10oz silver bars for sale, for a very long time, the 100oz bars have vanished, and the 10oz coins, especially the Lunar's are sadly missed.

Premiums for all products are high; coin dealers are also allocating purchase limits in some categories.

So, am I pumping silver? No, not at all, perhaps the stockmarket will crash, lets hope it doesn't crash like the Bitcoin crash of 1921 - 22 because if it does, gold and silver "might" go down with the market and then bounce. Do you think dealers will reduce premiums? Dealers are doing it tough, so I can't see how they could reduce premiums.

The reason, I wrote this post is that often new folk come to forums trying to get an idea of what to buy; that, comes with experience and often what a bloke thinks will make good dollars via flipping, might have to sit in the vault for several years before a gain can be made.

Remember the Koalas from 2007 2008 etc, they were an un-desireable design but gain popularity in later years.
The Kookaburra coins went through a moult which smashed numismatic values due to restrikes and the varying mintage limits that went from unlimited to 500,000 and now is back to unlimited.

We have seen 999 silver in the coins go to 9999 and bars abandoned by Mints so they can concentrate on selling 1000oz silver bars.

Remember that some were calling for $130 silver back in 2011, that never occurred, we saw low prices of silver in 2018 -2019 when most folk had lost interest and of course that huge drop in March 2020 which caught many stackers by surprise.

I suppose my best advice would be, (not that I'm any expert) don't rush in, look at the bullion mintages, then compare prices of what sells and what doesn't, try to not buy everything but select a bullion coin you understand; if it's Lunars, Kooks, Koalas or round 50 cent pieces, study just a few so that when a bargain comes in front of you, you already know the price.

Lastly, rolls of coins (unbroken rolls) are collected by stackers and collectors, they are often broken down and the best coins sent for grading; you too might be lucky to get a perfect coin or coins in a roll so that might be an option.
The bars? 10oz and 20oz Perth Mint Bars with 999 stamped on them may become collector items.

Perth "may" one day, cast 10oz, 1kg and 100oz bars stamped with a new LBMA Perth logo and the words "SILVER"  "9999".

Please support your local coin dealers.

Best to all.
 
Until now I thought we would see silver have a big dip before it goes up but now I'm starting to doubt.
With everything happening now, the inflation, the war in Ukraine... next week Taiwan. Who knows what after that.
Silver's just coming out of the bottom range it has been in, will it ever go back?
Exciting time.
 

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its going tobe a few years of needing to own hard assets. so i doubt silver will be dipping back to the $25 an ounce mark for at least a few years.
ad houses to that equation of very useful, and would be great if you already own your home and didnt buy at this insane current market price. not a good time tobe buying houses, good time tobe owning one. but a bad time tobe having a massive mortgage, also a bad time tobe paying huge rental prices that are out there.
homelessness is insane, seeing well paid people living out of their cars or couch surfing is something Ive never seen up till now. crazy around my area. people with good jobs unable to get a rental, its nuts.
thanks to rich knobs from down south buying up here and killing out market with Greed we have never seen before until now, booting out tenants so they can double rent prices and Contributing to this Inflation problem.

Precious metals likely be the safest in the current climate if buying now, not over inflated like other hard assets, YET.  the boat has already set sail on those other assets like houses.
 
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