Why not invest your money into buying gold and silver bullion. Precious metals are a great investment. Silver and gold bullion are stamped by international banks and refineries and are excellent investments. These bullion bars carry a premium price and are 99.999% pure.
Why buy Gold?
- The most important reason to buy gold in 2015 or any time, for that matter, is diversification and as an insurance against uncertainty. I was always told to have 5% to 10% in gold and pray I will never need it. In these dangerous times we live in and with the risk of a major event like a war, revolution or financial collapse, it is wise and prudent to have some of the gold and silver outside of the banking system.
- Gold is now at a very low level and oversold. I don’t expect gold to go below $1,000. In the case of a sideways market, gold will move between $1,100 and $1,500. If gold doesn’t explode in 2015 it will still move slightly up.
- Central banks are and will continue to buy gold and I even expect them to accelerate their buying, competing for a limited amount of gold and pushing the price up. Silver will follow gold as poor man’s gold. Central banks have been in currency wars since 2008 and they will end badly. Both Russia and China are using gold in their currency wars. A reset of the current monetary system will push gold easily to $5,000. An announcement by China of its gold reserves could get gold to test $1,900, and even $2,000, in 2015.
- I often hear that there is no risk of hyperinflation but of deflation, therefore a negative for gold. What people ignore is that a deflationary environment is catastrophic to the banking system and excellent for gold. In a collapse of the banks, gold and silver will circulate since they are the most marketable real assets.
- In the case of hyperinflation, which is also a high probability and can come after a short period of deflation, gold will outperform or, at least, maintain its value in real terms. In this case, $10,000 in nominal US dollars is not absurd.
All these reasons are in some way connected to the collapse of the present monetary system due to an exorbitant global debt, but especially of the United States and the European Union. Will it start this year or next? It is difficult to predict, but the recent events make me doubt the central bankers know what they are doing. We have seen this week (mid-January) that central banks don’t necessarily coordinate and don’t know what they are doing. The Swiss National Bank reversed the peg of the Swiss franc to the Euro after strongly defending it not long ago in a fight against the supporters of the Swiss gold initiative. The Swiss didn’t consult nor took into consideration other countries no more than the Fed did in its QEs. The unpegging of the franc was a cataclysmic event that caught everyone by surprise. It was, in my opinion, the first of a series of black swans of 2015. Statements as “we are in uncharted territory” and “we learn by doing” make me take precautionary action by buying real assets and, more specifically, the most liquid: gold and silver.
There is no other way of liquidating this exorbitant global debt, except by default or hyperinflation. What
do you think governments will prefer? In both cases, gold and silver will at least maintain their value in
(Dan Popescu https://www.goldbroker.com/news/five-reasons-buy-gold-silver-2015-707)
Why Buy Silver
- Moving into True Money Would you convert your labour into Depreciating Fiat Paper or into an appreciating tangible asset with intrinsic value? Silver offers the opportunity to move into true money, an actual store of value, with the potential for substantial gains in future years as its current cycle continues. Protect yourself and your family by acquiring silver with intrinsic value and insulate yourself from the wealth destructive policies of central bankers. If history serves as any reference, we are poised to repeat the accounting of the Depression Era and the 70's which put precious metal holder's on top.
- The Common Man's Gold The acquisition of silver is much more attainable for global populations compared to gold. As silver prices continue to rise, investor’s will further shift away from real estate, stocks, and bonds. begins to make news and involvement becomes widespread. The affordability of silver is poised to make it "common man's gold" as it
- The Ultimate Insurance Policy Throughout the last thousand years of history, most episodes of printing have been followed by pronounced periods of inflation or even extreme cases of hyper-inflation, either severely destabilizing the nation’s political stability or culminating in warfare, dictatorships, or a political collapse. A simple glance will quickly reveal that those who capitalized off these unique periods were holders of monetary metals such as silver. Even if you believe these possible outcomes are improbable, ownership of physical silver in the event will provide you the opportunity to not only protect your wealth but appreciate it significantly. Like an insurance policy, while the event probability is low, when fire strikes the benefits largely outweigh the cost. At the current silver price level, the cost of insurance is tremendously cheap in relation to the wealth it would conserve if history does in fact repeat itself.
- Silver: Much more than a Monetary Metal - Industrial & Medical Applications Unlike gold, silver has hundreds of industrial and medical applications and its usage is on the rise. Silver’s molecular arrangement and chemical properties make distinctly unique among earth's elements. In Mike’s words: “Of all the elements, silver is the indispensable metal. It is the most electronically conducive, thermally conductive, and reflective. Modern life, as we know it, would not exist without silver.“ In the last two decades alone, usage has increased substantially to include an array of electronic and digital products, medical appliances due to its anti-microbial properties, and even clothing. Product such as cellphones, cameras, laptops, mirrors, monitors, etc. all contain trace amounts of silver which is never replenished or returned to stockpiles. As our information age progresses and silver’s chemical uniqueness is more fully understood, demand for this irreplaceable metal will only continue to rise.
- A Dwarfed Physical Market & Vanishing Inventories While accessibility to silver may seem abundant in the flood of paper markets around today, physical markets are actually quite constrained and limited. Physical silver's dollar value is 30 / 1600 or 1.5 - 2.0 % that of gold’s, while over 70% of this metal is consumed in practical applications. The steady reduction in above ground inventories had been unique to silver amongst virtually all industrial and precious metals. Above ground supply is merely a fraction of what it was when silver hit its all-time high in 1980. Supply continues to be limited as applications in a broad range of fields continue to grow.
- Uncertainties in Future Supply The majority of the world’s silver comes from nations marked with political turmoil, labour unrest, and undeveloped economies. Mexico and Peru account for the largest share of production, both of which have fragile political systems and primitive infrastructures to accommodate significant improvements in production. Several South-East Asian nations are also included in this list, and present similar issues with regard to the consistency of supply. Geopolitical instability can quickly induce nationalizations (most recently in Bolivia), labour strikes , or poor infrastructures (accounts for high rates of flooding, fires, engineering mishaps, etc.) which can be have significant strains on supply.
- Emerging World Demand China and India represent two behemoth markets where populations have shown a tremendous appetite for gold and silver. An awakening of emerging market investment demand will contribute to a new demand dynamic for physical silver bullion. Supportive of the monetary aspects are some of the largest untapped markets for consumer electronic and industrial usages. Within the next decades, demand for appliances and technologies which require silver from developing nations is set to rise.
- End of Manipulation The most evident form of pricing manipulation on the silver front occurs through the derivative futures contracts traded at the COMEX. The amount of ounces traded on an average day typically exceeds the ounces of investment grade silver available by several factors. In the interview below, Mike provides us with some insight on the nature of manipulation:
The Paper Funds Exposed
While futures pricing manipulation gives institutional banks a means for price suppression, the ETFs and other paper derivatives have now involved the public in these mechanisms. These instruments funnel demand away from what would be geared as deliverable silver and into non-redeemable paper in the form of a prospectus or stock certificate.
It is not coincidental that over the last decade, dozens of ETFs, pools, certificates, etc. which have emerged are now being marketed for their accessibility and convenience to the retail investor. Make no mistake, these funds are merely paper and the ETF campaign has been largely successful in placing millions of novice investors in funds they truly do not understand. Therefore, acquiring tangible metals and truly protecting yourself is never more than a few clicks away.
- Gold to Silver Ratio Finally, the most enduring and lasting indicator of suppression has been the gold to silver ratio. While this ratio has historically oscillated throughout the last 2000 years, it has always revert back to its historical average of 12 to 1. Consider the tremendous upside potential for a silver investor purchasing silver with the ratio at these levels. The current affordability of silver makes it one of the most undervalued assets in recent history.