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SILVER or GOLD, which to invest in and why.Bullion rage

by: biggalswholesale( 634Feedback score is 500 to 999) Top 25 Reviewer
158 out of 173 people found this guide helpful.
Guide viewed: 3092 times Tags: Bullion | investing | silver | gold | bars


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Is Silver a Better Investment than Gold?
Precious metals investors often ask, "Should I invest in silver or gold?" I say silver, for many reasons.

First, silver has always produced a greater percentage increase during precious metals bull markets. In some precious metals bull markets, silver has tripled in price while gold has doubled. In some moves, silver rose four times while gold doubled in price. Additionally, silver has more industrial applications than gold does, with more uses being developed. These numbers can be verified buy tracing thru KITCO, which is what I use, but any bullion tracking web page will bring up these numbers as well.

Industrial uses provide an underpinning to the price of silver. So great is the industrial demand for silver that mine production and secondary recovery have fallen short of industrial demand since 1990. According to CPM Group, a New York metals consultancy, between 1990 and 2003 new production and secondary recovery fell 1,899.9 million ounces short of meeting industrial demand. Add in the silver used for coinage, and the 1990-2003 overall deficit swells to 2,214 million ounces.

Not only has production and secondary recovery failed to meet demand each year of the last thirteen years, but aboveground supplies are critically short. Some analysts say that supply will fall far short of meeting demand over the next decade, and that much higher silver prices will be the result. According to accepted statistics, more gold rests in the vaults of the world's central banks than there is aboveground silver.

The drop in reported silver holdings around the world shows just how much the production deficit has eaten into aboveground supplies. In 1995, Comex stocks stood at 260 million ounces; today Comex stocks are struggling to stay above 100 million ounces. In 1991, estimated silver inventories in London and Zurich were 350 million ounces; today that number is closer to 50 million ounces. In 1980, world governmental silver stockpiles totaled some 325 million ounces; today, few governments hold silver.

Finally, many people think first of gold when the subject of "hard money" arises. Yet, more people have used silver for money than have used gold. In something like fourteen languages, the words for silver and money are the same. In the United States, gold coins ceased to circulate as money with Roosevelt's 1933 call-in. However, the U.S. Mint continued to turn out silver coins until 1965.

I recommends silver investing for those investors who can handle silver's bulk and weight. Those who cannot should invest in gold.

Form your own opinions of course, but in precious metals, facts tell the stories, and percetages dont lie. In the industry which I have been apart of for some years, bullion buyers has always known silver was the better deal, and in comparing the bottomline numbers, the price differential has never made sense. But doing the percentage over the last month, remember, Gold jumped from 550 - 700 and stabilized currently approx 580.00. SO that was a 27.27% initail jump for gold, and stabilized at a 5.5% gain. But silver jumped from 8.00 to 14.00 an ounce in the same period, and stabilized now at about 10.25. Meaning a 57% initial gain, and stabilized at a 28.125% gain. These numbers don't lie.

Show take those percentages and you tell me which boat you want to be on!

TIll then


Guide ID: 10000000001245727Guide created: 06/27/06 (updated 11/13/09)

 
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