Saturday, December 21, 2024

Understanding Silver Bullion Investment Report

July 14, 2010 by  
Filed under Silver Bullion

Which is the only asset that is down 65% to 70% from it 1980 high? Yep! That’s right, its silver! I am 100% convinced that silver is the cheapest assets on the planet right now. There are so many positive things getting behind silver its not even funny.  To start, while gold has already surpassed its nominal high of $750 an ounce (now clocking in at $1,100); silver is still way below its nominal high!  As I write this, silver is currently trading below $16 an ounce.

Now if you are saying, “so what”. Then let me paint you a clearer picture. You see gold and silver have been money for 5,000 years. It has been only recently that people have stopped viewing it as such, but guess what? It’s going to be monetized again, and it is trading very much like a currency right now.

During good times, precious metals don’t offer a lot to folks. Gold doesn’t try and turn a profit, it doesn’t pay any dividends, it just sits there looking pretty. And that’s exactly why everyone wants it right now. Gold also doesn’t have any debts, bankruptcies, defaults, bribes or bailouts.  Everywhere you look things look iffy. Companies have to worry about consumers buying, banks have to lie about what’s on their balance sheets, and now we have whole countries going under (the current Greece debt problem).

Pensions are being wiped out, jobs are being lost, and towns, cities, states, and countries are going bankrupt. The only way out of this mess is for governments to print money. And print money they will, for fear of populist mobs. The western world is trapped in a debt base cycle that it cannot escape, and it is spiraling out of control.

We may experience bouts of deflation, but the end result is going to be debasing the currencies. Inflating the money supply is the easiest way to keep control on our countries huge debt obligations.

Morgan Stanley has done the math and to get our debt back under control, they are expecting 4-6% inflation a year! If you want to understand more on that I highly recommend the full article here:

http://www.businessinsider.com/morgan-stanley-m-magnitude-of-debtflation…

This is why gold and silver are becoming money once again. And this is why I’m so excited about silvers price, because where gold goes silver soon follows. There are actually communities in the U.S. right now that except silver as payment.

So why will Gold continue to go up? Well for one, those 1980 prices I mentioned earlier are not even adjusted for inflation!!

Some measures of inflation expect the price of gold to go as high as $6,000!

So where would that put silver?

And this is where the Gold / Silver ratio comes in. As I type the ratio comes in at about 70. That simply means its takes 70 ounces of silver to buy one ounce of gold.

The ratio right now is extremely high! Meaning silver is very cheap compared to gold. The long term historic ratio has been 16 ounces of silver to one ounce of gold. If that ratio comes back to normal at 16 while gold hits $6,000 that would put silver at $375 an ounce! That’s a 2,200% return! Now it could still take a while before we get there, but it also could happen much sooner than we think. Consider every day that silver doesn’t take off a blessing, because you can buy more. Some people are even predicting that the gold/silver ratio will swing all the way down to 5 or 6. That could put silver as high as $1,000 an ounce!

Silver Prices have risen over 119% since the 2008 lows. Try finding a bank CD that you can get for that return! But first you’ll have to find a bank that doesn’t run the risk of going under. FDIC was in the red $20.9 billion as of the last quarter in 2009, and over 700 banks are considered at risk by the FDIC for 2010.

Please don’t just take my word for it, feel free to look it up. In fact, spend some time and fact check this whole report.

OK, so now you might be asking yourself what if we really are on the road to recovery? And here is why silver becomes so great. It’s used in tons of stuff! Silver is used in all sorts of computers and electronics, it’s used in water purification, medical equipment, sanitation, photography, jewlery and there are more uses coming out. So even when the economy is doing well silver is going to be in demand. And when silver is used up in industry its gone or at least very difficult to recover.

Silver has a double use, in industry and as money!

I haven’t even touched on how gold and silver production has been falling over the last decade. Basic economics right there: low supply + high demand = prices going up!

Bottom line, the fundamentals are VERY strong for higher silver prices in the future.

So, if this isn’t enough to get you excited about putting some of your paycheck into silver each month, then you are really going to lose your head over this:

There is an amazing affiliate program out there that rewards you and your friends for buying silver.

Here is how it works, you sign up and you pay for a 1 once silver eagle once a month (more if you want), then you show your friends the fantastic opportunity in silver and have them sign up under you using the affiliate link. Now here the best part: For every 2 ounces someone buys under you, you get another once sent to you!

The price of your silver coin goes down as you find people who purchase coins under you.

For example, if you have a member or members buying 2 coins a month your price ends up being $18.25 per coin.

If you have members buying 4 coins a month then it’s $12.16 per coin.

6 coins a month would works out to about $9.12 per coin. 8 works out to $7.30 per coin. 10 = $6.08 per coin etc. There is no limit how low the price can go.

(Silver eagles go for a higher premium over spot because they come from the most trusted U.S. mint)

The program is called the Silver Snowball. Sign up right now and get started!

http://silversnowball.com//cgi-bin/d.cgi/2353/order.htm

Don’t wait! Get started now and start signing up people! It doesn’t take much to set things off in the market right now, so the sooner you get started on your silver program the better!

This is just one way to start your silver buying an protect your purchasing power. Its time to get excited, and its time to protect yourself.

I want you to do well and I want this country to get back on its feet. The sooner we can wipe out our debt and start saving in real money the better.

If you want more information on the silver snowball please visit: http://silversnowball.com/2353

or order directly at: http://silversnowball.com//cgi-bin/d.cgi/2353/order.htm

For a great resource on the economy and the silver market visit:

http://taoeconomics.com/

Thanks for taking the time to read this report, I hope that you start saving in silver and are able to get in on this current cheap price. If you have any questions at all, don’t hesitate to ask. You can submit your email in the form here: http://silversnowball.com/2353 I’ll be sure and introduce myself and if there is anything you need, just let me know.

Over the last 7 or 8 years, I’ve been an economics junky. I read and study economics and the market everyday. So when I identified the housing and credit bubble, I sold my home in 2005. But even before that I purchased my first ounce of silver for $7. I also purchased my first ounce of gold for $390. In short I do well at calling the big trends in the market.

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