While you often hear gold is even more precious than silver, it’s silver that could potentially run dry before gold. If you already own physical gold, wouldn’t it make sense to consider adding silver as well?
Some estimates put the total amount of silver already mined at 1.5 million tons. Sounds like a lot of silver right?
You see, we have lost much of what has previously been mined. A significant portion of that 1.5 million tons of silver was never recycled and likely ended up in landfills.
Just how much of the earth’s crust contains silver? There are likely varying estimates, but one thing is for sure.
There is only so much…
The silver market seems to be misunderstood by many. Because silver is significantly less expensive than gold on a per-ounce basis, many assume that silver has a much greater supply.
As is often the case, the “many” are wrong.
While we have mined a significant amount of silver already, much of that silver was lost. In addition to this, as industrial uses for silver began to expand, the world has consistently used more silver than it produced.
Think of the modern age for a moment and all the potential uses for silver. Think of growing markets such as China and India. The appetite for silver is likely to increase drastically in the coming years as production levels continue to lag behind.
Less supply + more demand = higher prices
Some estimates put the amount of silver supplied from pure silver mining at only about one-third of silver supply. The rest of the silver comes from the mining of other natural resources such as gold, zinc and copper.
Here is where it gets interesting…
As far as the economy goes, in our view, it stands to reason that silver prices could rise sharply whether economic activity is robust or not.
If economic activity and global growth are strong, industrial demand for silver is likely to rise significantly. This increasing demand without a corresponding increase in supply could send prices skyrocketing.
In a slowing economy or global recession, silver could potentially benefit in two ways.
First, investment demand for silver could sharply rise as investors may seek out alternatives to stocks and other risk assets.
Second, mining and production of various base metals of which silver is a by-product could decline. Such a reduction could lead to a silver supply crunch that could send prices to the moon.
Either way, silver is not likely to get much cheaper than it is today.
We believe that silver will have its day. Prices could potentially increase by five, ten, twenty times or even more.
The only question is: Would you rather buy it at $15 per ounce or $150 per ounce?
The simple laws of supply and demand tell us that silver could potentially move much higher in the coming years and decades.
Don’t let this potentially explosive market opportunity pass by. Consider an allocation in physical silver today. If you already own silver, consider adding to your holdings.
You can purchase silver in coin, bar, or round form. You can store your silver at home, in a safe deposit box, or a depository. You can even use your IRA account to buy and hold physical silver. In fact, we would argue that this is the best way to build a silver portfolio.
Getting started is easy. Speak with an Advantage Gold account executive today. Our precious metals professionals will discuss your options and answer your questions. We can guide you through the process of setting up a precious metals IRA account and even show you how to roll over an old 401(k) into a gold or silver IRA. Don’t wait for the supply crunch to really escalate. Call us today at 1-800-341-8584.Tags: add silver to my ira, advantage gold, precious metals, silver, silver bars, silver coins, silver mining, silver on the rise, silver rounds, silver supply and demand