Silver the New Gold
MAY 06, 2010
Most of the gold that has ever been mined is still with us today; perhaps 90% according to some analysts. The opposite is true for silver. Silver is used heavily by industrial demand, it is estimated that 90% of all the silver mined in the past 5,000 years has been used up, thrown away, unrecoverable.
Epithermal Deposits – a geological term upholding the idea that most of the silver ore deposits in the Earth's crust were deposited at shallow depths, near the surface. Most of the easy silver finds have already been made, easy silver production projects are next to nonexistent today!
Every year that goes by, more silver is used worldwide than is being mined and recovered by recycling. Current world silver demand runs at 900 million ounces a year. Current world mining rates of production stand at 600 million ounces annually.
Over the next 25 years the world will need approximately 15 billion ounces of silver to meet current demand. The US Geological Survey projects the earth may contain only 8.5 to 18 billion ounces remaining in its crust.
It's going, going, almost gone!
Today US silver production runs at roughly 40 million ounces a year. Over the past few years, silver production in the United States is down nearly 30%. Nevada, formerly the largest mining state for silver has seen its silver production decline by more than 50% over the past five years. Many silver ore bodies in the United States are running dry.
Silver Eagles are Maxing Out!
In 2007, just over 9 million Silver Eagle coins were struck and sold to the public. In 2008, the figure more than doubled to 20.5 million coins sold. Last year the US Mint witnessed another large increase in demand as investors scooped 30.4 million Silver Eagles. Thus far in 2010 alone, almost 12 million Silver Eagles have been sold to the public!
Silver Eagle coins by law, are to be comprised of newly mined silver obtained from domestic sources, meaning the coins are to consist of silver newly mined (within a 12 month time frame) in the United States only. Taking this into account, we would like to again call your attention to the ever-increasing demand for Silver Eagles, below is a chart of the latest updates for 2010 Silver Eagle sales thus far:
If we extrapolate the data above, investor demand is on pace for more than 35,000,000 Silver Eagles to be struck and sold this year alone. Again, here in the USA we mine roughly 40 million ounces of silver annually, this means we are on pace to use almost 90% of this years domestic silver production for Silver Eagle demand alone!
What will happen when Silver Eagle demand outstrips supply? Will the minting laws be changed? Will they merely raise the premiums? The public is hardly aware yet Silver Eagle sales are reaching their legal supply threshold.
It is our firm belief that we are in the midst of the great Gold and Silver rush of the 21st Century and in the coming wild years ahead, shortages of physical silver and gold will become the norm, not the exception. Those who hold physical bullion should greatly benefit.
So Why is Silver the New Gold?
There is less silver in the world for investors today than gold. In the western world we take silver for granted, we are befuddled to believe that silver is common and easy to obtain. In many regions of the globe, finding investment grade silver can be next to impossible. Many of our Asian-Pacific customers have expressed to us that they have no trouble buying gold bullion in their countries, but finding investment grade silver is next to impossible.
Silver cannot be substituted; it has too many unique properties. Nothing conducts electricity or heat as well as silver. No metal is a better reflector of light. Silver is integral in the photographic process and has important health benefits. The white metal is an absolute necessity in high tech as every server, cell phone, monitor, computer, and electric switch. It's in your TV, washing machine, refrigerator, batteries, DVD's, iPod, wall switches, and mirrors. Without silver our modern way of life is impossible!
Silver's Newest Innovative Uses?
We contacted the "Silver Guru", Mr. David Morgan of www.Silver-Investor.com to better understand the latest innovative applications:
- Solar energy
- Textiles and Fabric Applications (polyester fiber clothing)
- Food Preparation and Storage Areas
- RFID tags
- Bottled Water Purification
- Home Health Products (toothbrushes, makeup applications, combs)
- Food Processing (milk)
- Silver-based Paper Products for Food Packaging
- Rechargeable Solar Batteries
- Silver Coated Window Insulation
- Medical Uses (hospitals, wound dressing, antibacterial applications)
- Replacing Platinum Catalysts with less expensive Silver Catalysts
Silver is absolutely necessary for our modern way of life. Silver is also a necessity to hedge against the rampant fiat currency expansion going on all over the world. We are running out of silver and there is no end to the inflationary threats central banks are forcing upon us!
As Mike says, "Silver is cheaper than dirt right now!", and the best news of all is that you are one of the very few people in the world who understands having the opportunity to take full advantage.
The information, opinions, and financial data presented are for educational purposes only and are not intended as investment advice. No guarantees are made as to the accuracy of the information provided herein. Situations can change from day to day. Every investor should do their own due-diligence to determine which investments are best for them.
You must assume the responsibility and liability for all decisions that you make on the basis of the information herein contained. GoldSilver.com, makes no warranties, expressed or implied, as to the fitness and accuracy of the information provided or for the results obtained by using the information. Those making investment decisions based on any of the information presented should do so in the knowledge that they could experience significant losses. In no event shall GoldSilver.com be liable for direct, indirect, or incidental damages resulting from the use of the information.