During the early 1980’s who were the people responsible for driving up gold’s price to $850.00 and silver’s price to $50.00? During this time the only real players in these markets were North America and Western Europe. Both U.S.S.R. and Eastern Europe at that time had very unstable economies therefore it was pretty much impossible for any of their citizens to participate in purchasing any precious metal for investment.
Furthermore China, India, South America and Mexico being for the most part, farming countries had no wealth among their citizens to buy precious metals either. Even if there were people around lucky enough to have some money for investing there were no exchanges around in those days for any trading to take place. Because of these facts, it is fair to say that all these countries combined could not have had much of an impact on the world’s spot prices for these two metals.
Today of course it’s a different world all together. Pretty much every country in the world is capable of purchasing precious metals. We also have billionaires in many countries and exchanges where trades can take place that were not even conceived of back in the 80’s, such as the Shanghai Stock Exchange.
It is a fact that silver is rarer than gold. In 1980 the gold supply that was available for investors to buy was at 2 billion ounces. While the total available supply of silver for investors back then was at 2.2 billion ounces. Today gold’s supply still stands at 2 billion ounces for investment purchases. However today the total silver supply remaining for investment has drastically dropped to 300 million ounces. Currently there is 8.3 times more gold for investment than silver. The reason for this steady decline is due to high industrial demand.
The main difference between these two metals is that one is horded while the other is consumed. Silver is an element used both in industry and investment. This element is used in cell phones, telephones, computers, DVD’s, CD’s, film, mirrors and many other applications. It is also the most reflective, electronically conductive and thermally conductive element on earth. There is no replacement for it, furthermore its stock piles both above and below ground are being depleted fast, so when it’s gone, it’s gone forever.
The cost presently for silver is cheap. It has been undervalued by price manipulations for decades. Its price for a very long time has been below mining costs. You simply cannot have an industrial commodity with such high industrial demand, that the earth is running out of, remaining below mining and production costs. A situation such as this simply will not last. At some point in the future it is going to become common public knowledge that silver is rarer than gold.
At the present time there are fewer than one in 10,000 people who know and understand this. But when the time comes that the public is aware, what do you think will happen to the price? It will skyrocket. You will see everyone in droves rushing in to buy up as much silver as possible all at the same time. Silver’s price chart at that point will go vertical. That is not the time to be buying. The time is now before everyone else becomes aware of it. The greatest wealth transfer in history is coming. You still have time to position yourself to be on the correct side of this wealth transfer and prosper.
Tom Genot –