Silver - the most undervalued metal in human history.

Gold today is without a doubt more rare than Silver  but what about tomorrow.
On average today, for every 10 ounces of
Silver pulled out of the ground, only one ounce of Gold is mined.   However, the majority of Silver mined is used for consumption while the majority of Gold mined is nearly all added to global inventory. 

Yet precious metal investors as small a group as they are,  are still investing $7.00 in
Gold for every $1.00 they invest in Silver.  Looking at modern history, Silver is destined to be more rare and certainly worth more than Gold.

In 1950, there were 10 Billion Oz of above ground  available  Silver.  By 1980, it strengthened 3.5 Billion ounces and in 2010 it is estimated that the above ground available Silver supply is between 500 to 700 Million ounces.  To put this in perspective, total above ground available Gold in 1950 was 1 Billion ounces  and today, is estimated to be around 7 Billion Oz.  

In 1980, when Silver nearly reach $50 per ounce, global population was 2.5 billion people.   Global GDP was $10 Trillion and China had the 11th largest economy.    Today global population is near 7 Billion people, global GDP $60 Trillion and China is now the 2nd largest economy.   So the population since 1980 is up 176%, Global GDP is up 500%, above ground available Gold is up 600%.  Meanwhile, above ground available Silver has plummeted at least by 91% and the price is still down 46% from its 1980 high of $50 per ounce. 

To say the opportunity in Silver is enomous is understand.  Looking at the historical Silver to Gold ratio of 50 : 1,  Silver is highly undervalued today.    It now takes 50 Oz of Silver to purchase 1 Oz of Gold.   Even when ignoring the above ground supply deviation,  mine metal production should at very least bring that number to 10 : 1.   Using today prices of Gold at US$1,400, Silver should be worth no less than $140 per Oz.  

Silver is being consumed more than ever and it is a fact that there is less above ground amount of Silver than there is Gold.   Industrial demand for Silver is up 18% in just the last year,   The need for Silver is growing by the day.  Silver is being consumed and used for bandages, for wounds care, batteries, shouldering, converters, cell phones, computers, satellites, high tech weapons, lasers, digital technology, clothing,  electronic circuits, boards, water purification , wood trimming, RFID, chips, transformers, passport and the list goes on....

From 1990 to 2000 nearly 2 billion Oz of above ground available above ground Silver disappears through consumption, yet industrial demand for Silver was only 35% by the year 2000, today is 54%.  And looking at the new uses for Silver, the Silver production deficit will only widen.   China since 2003 has been growing its solar energy base by almost a 100% every year.  By 2014, the world will need 130 Million  of Silver just to satisfy one year of  global solar demand.   

The world has consumed so much Silver in the last 50 years that the last time the global inventory of Silver was this low was in 1380.  The deficit of Silver production has been met mostly from government stocking stock piles.  The US dumped almost in World War II into the silver market.  By as of 2010, according to the US Government, Government stock pile of Silver are listed as "None".    

The supply and demand deficit continues to be ignored by global investors year after year, decade after decade.  Total mining production for 2009 was 710 Million Oz.  Total demand was 889 Million Oz,  there is a mining production deficit of  about 179 Million Oz to meet demand.  

With each day come a  new use for Silver, and the supply and demand deficit continues to either way of above ground available supply, Silver may be the greatest investment in human history.    

How often does any generation has the opportunity to invest in a finite resource that will soon be extinct! 

Your comment will be posted after it is approved.

Leave a Reply.

    Laura Lim

    Silver Is Destined To Be More Rare And Worth Much More.
    Start Accumulating Silver To Generate Wealth. 


    September 2012