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Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?

 
No Dhimmi

User ID: 18280111
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12/27/2012 05:38 AM

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Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
Average annual gold mine production is approximately 80 million ounces, which together with an estimated average 50 million ounces of annual recycled gold, totals around 130 million ounces available per year. In comparison, annual mined silver production has averaged around 750 million ounces, while recycled silver is estimated at 250 million ounces per year, which adds up to approximately 1 billion ounces. Using this data, there is roughly 8 times more silver available to buy than there is gold. However, not all gold and silver is available for investment purposes, due to their use in industrial applications. It is estimated that for investment purposes (jewelry, bars and coins), the annual availability of gold is roughly 120 million ounces, and of silver it is 350 million ounces. Therefore, the ratio of physical silver availability to gold availability is 350/120, or ~3:1.

[link to sprottasset.com]

Last Edited by No Dhimmi on 12/27/2012 05:39 AM
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No Dhimmi  (OP)

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12/27/2012 05:39 AM

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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
:Priceless:
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Anonymous Coward
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12/27/2012 05:40 AM
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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
BUY! IRAQI! DINARS!!!!11
No Dhimmi  (OP)

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12/27/2012 08:07 AM

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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
Silver Surfer
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No Dhimmi  (OP)

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12/27/2012 08:30 AM

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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
Why silver is still the top commodity tip again for 2013

[link to www.arabianmoney.net]
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Alexander

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12/27/2012 08:33 AM

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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
Gold is easier to carry around. Meaning the same value in silver is much heavier if one need to use it for exchange if traveling.
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No Dhimmi  (OP)

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12/27/2012 08:52 AM

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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
On that point I agree- but if you have a home safe- silver is expected to out perform gold in value percentage wise.
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No Dhimmi  (OP)

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12/27/2012 09:15 AM

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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
The 2003-2012 silver price in all major currencies is shown in the graph below.

Question: When will silver cross $50?

Answer from David Morgan: It is likely to happen in 2013. The next leg up is starting right now, although we probably will not see a substantial acceleration in the leg up. Obviously, as soon as $50 is crossed an acceleration can be expected. It remains difficult to forecast how fast the acceleration will be.

Question: How much is silver currently undervalued (compared to the money supply)?

Answer from David Morgan: One of the realistic approaches would value 700 dollar an ounce. Source: a recent video from professor Ryan Jordan.
Question: I keep my silver in the US. Should I also store it outside the US?

Answer from Mark O'Byrne: We advise clients not to store bullion in the US. In fact, Switzerland remains the safest place in the world to store bullion.

:Silver in 2013:

[link to seekingalpha.com]
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No Dhimmi  (OP)

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12/27/2012 11:21 AM

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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
Thanks to these low prices I was able to pick up 20 oz today! Thank you Blythe!
ALL relevant scriptures that include a time factor prove no pre-trib rapture. Over 50 verses! Kindle Edition only 99 CENTS! Biblical Eschatological “Time-Stamps” Relevant to the Last Day/Days (Amazon)
Anonymous Coward
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Canada
12/27/2012 11:43 AM
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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
In my opinion, there are several answers to that

Gold is usually bought for investment ( physical),whereas silver is usually bought for consumption, and until recently was not really on the retail investors map

Gold is much easier than silver to mine and refine

93% of all of the silver ever mined has been used in manufacture or consumed,which when compared to the ratio for gold is much much higher. Also gold is easily recycled, pure silver ( 99.99) is not.

Electronics are "silver heavy", that is they use up a significant amount of silver in the manufacture of a lot of electronics we are becoming accustomed to and consuming at a voracious rate.

Bottom line is it is a classic supply and demand equation. Although gold is great for currency, silver can be had in much lower denominations with lower and more realistic intrinsic values.I would hate to trade a 1 oz gold coin for a box of ammo and some cans of soup but you have to do what you have to do.

Essentially, in a nutshell, they see the trend and where it is going.
No Dhimmi  (OP)

User ID: 256987
United States
12/27/2012 11:50 AM

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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
In my opinion, there are several answers to that

Gold is usually bought for investment ( physical),whereas silver is usually bought for consumption, and until recently was not really on the retail investors map

Gold is much easier than silver to mine and refine

93% of all of the silver ever mined has been used in manufacture or consumed,which when compared to the ratio for gold is much much higher. Also gold is easily recycled, pure silver ( 99.99) is not.

Electronics are "silver heavy", that is they use up a significant amount of silver in the manufacture of a lot of electronics we are becoming accustomed to and consuming at a voracious rate.

Bottom line is it is a classic supply and demand equation. Although gold is great for currency, silver can be had in much lower denominations with lower and more realistic intrinsic values.I would hate to trade a 1 oz gold coin for a box of ammo and some cans of soup but you have to do what you have to do.
Essentially, in a nutshell, they see the trend and where it is going.
 Quoting: Anonymous Coward 27627548




Bolded is a great reason to have silver during a collapse - Gold traded for land
Silver for food / ammo / guns / etc.
ALL relevant scriptures that include a time factor prove no pre-trib rapture. Over 50 verses! Kindle Edition only 99 CENTS! Biblical Eschatological “Time-Stamps” Relevant to the Last Day/Days (Amazon)
RootzGemini

User ID: 25255150
United States
12/27/2012 12:56 PM
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Re: Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?
In my opinion, there are several answers to that

Gold is usually bought for investment ( physical),whereas silver is usually bought for consumption, and until recently was not really on the retail investors map

Gold is much easier than silver to mine and refine

93% of all of the silver ever mined has been used in manufacture or consumed,which when compared to the ratio for gold is much much higher. Also gold is easily recycled, pure silver ( 99.99) is not.

Electronics are "silver heavy", that is they use up a significant amount of silver in the manufacture of a lot of electronics we are becoming accustomed to and consuming at a voracious rate.

Bottom line is it is a classic supply and demand equation. Although gold is great for currency, silver can be had in much lower denominations with lower and more realistic intrinsic values.I would hate to trade a 1 oz gold coin for a box of ammo and some cans of soup but you have to do what you have to do.

Essentially, in a nutshell, they see the trend and where it is going.
 Quoting: Anonymous Coward 27627548



Silver is used in a lot of electronics. Below is a video by a guy that is pretty smart and pushes for people to get into silver and has a series of videos that break down the reasoning, if anyone is interested.






GLP