Have you heard you should buy silver now, before it is too late?
Maybe you have heard you should buy silver coins, silver bars, or silver stocks. Although gold has been on a growth tear for over a year now, because of the faltering economy and falling U.S. dollar, many experts are saying it's even more important to buy silver.
There are two fundamental reasons why the experts are saying this. First, the gold-to-silver price ratio (i.e., price of gold divided by the price of silver) is way out of whack based on historical trends. In other words, gold has been on a tear, but the increasing price of silver is way behind.
The second (even more important) reason, is gold never goes away, but silver is actually used up. There are hundreds of applications of silver, and yet, our reserves are declining severely. In fact, current world silver demand is around 900 million ounces per year, but the average worldwide production of silver is only 480 million ounces. In other words, we are only producing just over half what we use every year.
This creates an ever-tightening supply for a commodity that continues to grow every year. Based on data from the U.S. Geological Survey (USGS), we will run out of silver before we run out of any other metal. The USGS estimates there is only 8.5 to 18 billion ounces of silver left in the world; based on the current world mining rate of 600 million ounces per year, we will mine about 15 billion ounces over the next 25 years. That means we could mine all the remaining silver from the earth in the next 25 years!
That is the very definition of a strictly limited supply, and yet the demand keeps growing.
So, what happens when the demand keeps growing for an extremely useful commodity that is in strictly limited supply?
The price explodes!
This is why the experts keep saying, "Buy silver now". When the world supply of silver is effectively used up with none left in the earth, every ounce of silver you own is going to be worth a fortune!
The most popular way to buy silver is to buy silver eagles. In other words, buy American silver eagle coins. You can buy the collector-grade on the presumption collector's will bid up the price, but everyday American silver eagles gives you a much more cost effective way to buy silver. Of course, there are other options to buy silver as well.
Written by Dr. Bryan Stoker.
Learn more about how and why to buy silver: The Silver Dollar
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