Why Buy Silver? -
Canadian Gold Silver
For
over 66 years, since the end of WWII, silver has been consumed in industry,
mostly in electronics, to the point that most of the silver ever mined in all
of human history has been consumed. This reduction and consumption of supply
has made silver more rare, and has created a potential natural monopoly for
those who buy silver now.
The
world mines just under 10 times as much silver, as gold, each year, suggesting
a price ratio of 10:1, showing silver may perform 4 times better than gold,
given the current price ratio of 41:1.
In
sum, the silver market remains very tiny, for billionaires. World silver mine
production is about 700 million oz., yet industrial consumption of silver in
over 10,000 different applications continues to increase faster than mine
supply.
World
investment demand, which is a small portion of overall demand, has vastly
increased, but remains a tiny 250 million oz., which, at $40/oz., is a
relatively tiny $10 billion, tiny in the scale of world finance.
By
the time even a tiny 1% of U.S. paper money tries to buy silver to protect
itself from inflation, that would be $180 billion dollars (1% of $18 trillion),
or 18 times as much investment money went into silver last year.
Finally,
the silver price has risen enough so that a billionaire now actually can buy $1
billion in real, physical, silver bullion.
The Demand and Diversity
of Silver
Although
silver is relatively scarce, it is the most plentiful and least expensive of
the precious metals. The largest silver producing countries are Mexico, Peru,
the United States, Australia and Chile. Sources of silver include; silver mined
directly, silver mined as a by-product of gold, copper, lead and zinc mining,
and silver extracted from recycled materials, primarily used photographic
materials. Today, silver bullion stocks make up a significant component of
silver supply.
The
demand for silver comes primarily from three areas; industrial uses, jewelry
and silverware, and photography. These industries represent 95 percent of
annual silver consumption. Silver’s superior properties make it a highly
desirable industrial component. Silver’s artistic beauty and status make it one
of the most romantic and sought after precious metals.
Diversity
is silver’s primary asset. Its unique properties include beauty, strength,
sensitivity to light, malleability and ductility, electrical and thermal
conductivity, reflectivity and the ability to endure extreme temperature
changes. These properties allow groundbreaking research to be conducted by
scientists and engineers that effect the way we live.
Silver
more than other precious metals, has significant demand rooted in sectors as
diverse as imaging, electronics, jewelry, coinage, superconductivity and water
purification. For this reason, silver is no longer known as just a precious
metal, a store of value, a work of art or an industrial metal. It is all of
these. Today silver is indispensable, working all around us to improve the
quality of our lives.
Silver
is truly an indispensable precious metal. It fulfills demand as both an
investment asset and as an industrial metal. Silver is timeless, being
recognized as a store of value from ancient civilizations through modern times.
There are also a growing number of industrial uses for silver. It can be found
in our smart phones, flat-screen televisions, and also find use in a variety of
medical applications.
Silver Bullion Coins,
Bars, and Rounds
The
defining quality of silver bullion is that it is valued by its weight and
purity. For investment purposes, silver is melted down to its purest form, then
struck or cast into coins, rounds, bars, and ingots. The final product is then
traded on the basis of its silver content.
Government Minted Silver
Coins and Silver Bags
The
most popular government minted silver bullion coins on the market today are the
American Silver Eagle and the Canadian Silver Maple Leaf. As a trusted retailer
for both, we offer these products at among the most competitive prices in the
industry.
Silver Historical
Background
Silver
has attracted man’s fascination for many thousands of years. Ancient
civilizations found silver deposits plentiful on or near the earth’s surface.
Relics of these civilizations, include jewelry, religious artifacts, and food
vessels formed from the durable, malleable metal. This metal took on near
mystical qualities in marking important historical milestones throughout the
ages, and served as a medium of exchange. The Mesopotamian merchants were doing
just that as early as 700 BC.
In
1792, silver assumed a key role in the United States monetary system when
Congress based the currency on the silver dollar, and its fixed relationship to
gold. Silver was used for the nation’s coinage until its use was discontinued
in 1965. The dawn of the 20th century marked an important economic function for
silver, that of an industrial raw material.
Today,
silver is sought as a valuable and practical industrial commodity, as well as
an appealing investment precious metal. Many countries now issue silver bullion
coins, among them the Unites States, Canada and Mexico. Private issue silver
bullion is also available from select private mints.
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