Silver facts


Reprinted from "Ruff Times", by Howard Ruff.

Silver is a jewelry and monetary metal, but it is also a very important industrial metal. http://www.mincoplc.com/silver/usesSilver.htm
It has over 2,000 industrial uses. Back in the ‘70s when I liked silver over gold, there was ten times as much silver above ground as there was gold. Despite that, we made two to three times as much money on silver as we did on gold.
Now the ratio has changed. Industrial use has so depleted our silver inventory that government now owns none and there is six times more gold above ground than silver, which is by far the scarcer of the two metals.
So why is gold many times more expensive than silver? Because 99.9 percent of the people in the world think gold is much rarer than silver. But they are wrong – dead wrong – and sooner or later the supply/demand equation will favor silver and narrow the pricing gap between the two metals.
Most of silver is as a byproduct of mining base metals, like copper and zinc. In this economic collapse, we will mine a lot less copper and zinc, and produce a lot less silver. Silver supplies will become tighter and tighter, which means higher prices.

Just part of the reason I like silver. It's up nearly 100% from the year's low, and I think it will go higher if the economy picks up, and MUCH higher if the economy tanks like I think it will. Anyway, I made my bet on silver awhile back, and just wanted to share this article. They key part? There is six times more gold above ground than silver, and silver has MANY idustrial uses, on top of jewelry, coinage and as a financial safeguard. From all the charts, it looks like it's going up. As always, financial advice is worth exactly what you pay for it. Zilch!

Comments

Popular posts from this blog

Guest columnist

You think the Repub brand is tarnished now?

Great 'bargains' at the local Sprouts store