Silver is sought as a valuable and practical industrial commodity, as well as an appealing investment precious metal. Many countries issue silver bullion coins, among them the Unites States, Canada and Mexico and private issue silver bullion is also available from select private mints.
Although silver is relatively scarce, it is the most plentiful and least expensive of the precious metals. The largest silver producing countries are Mexico, Peru, the United States, Australia and Chile. Sources of silver include; silver mined directly, silver mined as a by-product of gold, copper, lead and zinc mining, and silver extracted from recycled materials, primarily used photographic materials. Today, silver bullion stocks make up a significant component of silver supply.
- For the past 30 years the world has used up more silver than has been mined, and today silver inventories are near all time record low levels. Today, there is only enough investment-grade silver on earth for every person to have 1/14th of an ounce.
- Silver is a ‘miracle metal’ second only to oil as the world’s most useful commodity. 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 it the most electrically conductive, thermally resistant, and reflective metal on the planet that has no known substitutes.
- 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. Products 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.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. Within the next decades, demand for appliances and technologies which require silver from developing nations is set to rise.
- 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 reverted 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. There is currently less investment-grade silver available on earth for investors to buy than there is gold.