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Why Is
Silver Tangible Wealth?
Silver cannot be
manufactured on a printing press like paper dollars. Silver (and
gold) have been an asset and a stable store of wealth for
millennia. Other than printed currency, name some items of true wealth
you possess. Cash in the bank? What happens if your bank goes bankrupt and seizes
all of your savings? What happens when all depositors want to
withdraw their savings at the same time, like during the Great
Depression, when about 1200 banks closed? You get nothing. If you
had silver (or gold) in your possession, it was
tangible wealth and not empty paper promises.
And what happens if you miss a few mortgage payments?
Your home will be 'legally' confiscated.
How quickly can you pawn your jewelry or you sell your car?
Unless you are driving a Ferrari, it is a rapidly
depreciating item. And even a Ferrari becomes a poor store of
wealth when you must pay $25,000 for an engine rebuild.
So why is tangible wealth so important? The U.S.
government is printing away your wealth through inflation. Any increases in
the money supply
helps to fool Americans into believing the economy is doing great, to pay for
hurricane damage rebuilding, and invasions and occupations.
The last M3 reports showed that 18% more dollars were
being
printed yearly. by the Federal Reserve (which is neither
'Federal' nor has any 'reserves'). And what are they
trying to hide by refusing to publish M3 figures now?
If you had a 1 oz. silver bar, one year from now would
that bar contain 18% less silver? Wouldn't you rather fight
inflation and have tangible silver that cannot be devalued?
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Why Physical Silver?
The advantage of possessing physical
silver (and gold, palladium, platinum) are many. In a few words, it
is private, portable, liquid, secure, and if you buy collectibles,
beautiful and historical.
So how did I discover these benefits? After
the 'dot com' bubble burst, tech stocks were nearly worthless and I was
afraid of the real estate bubble deflating. So when my friend told me
about buying physical silver for
what it cost to mine from the ground, I recalled the days of gold
running up from $35 per oz. in 1971 -- to $820 per oz. in 1980. He
then told me that silver had been in a 20 year bear market and that
it would probably exceed the inflationary adjusted 1980 prices in the
next few years. When I heard, "Diminished supply and increased
demand never fail to increase the value of something," and
"Warren Buffet of Birkshire Hathaway bought a large amount of silver in 1997," I
had to learn more.
History tells us that since the Roman Empire every currency
has been inflated into non-existence, a valuation of zero. All world currencies will suffer the same fate eventually, so what to do with rapidly
depreciating dollars? They say the smart money is going into gold,
and the REALLY smart money is going into silver.
Anyway, after learning the benefits of physical
precious metals, I chose to seek information about companies which
mined it. If I could not own a lot of physical silver, I figured I
could 'own' it in the ground.
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Why
Silver Mining Companies?
A few years ago my friend, Jason Hommel, informed me
that his plan was to invest in physical
silver and silver stocks.
According to him, the next best thing to owning physical silver was
owning stock in mining companies. Shortly thereafter he
launched a FREE newsletter, specializing in reporting on the
undervalued stocks of mining companies with large silver reserves in
the ground. His research shows that above
ground silver reserves are likely nearly depleted, because silver is coming
to market only as a by-product of the mining of gold, zinc,
molybdenum, etc. Few mining
companies have directly mined silver for the last 20 years because they
can only sell it for slightly more than it costs to extract from the
ground.
Anyway, his free newsletter has grown to over 18,000
subscribers and his website is called the SILVER STOCK
REPORT. Read his free Ebook, or purchase a monthly look at his portfolio. CLICK HERE
for Jason Hommel's FREE Silver Stock Report. |
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Silver Articles
I thought I should
post some articles by authors more knowledgeable than I am about
various topics.
-- Did you know that every fiat currency in the
history of the world has become worthless?
-- Did you know that the Federal Reserve is NOT a part of the
U.S. Government? Since the creation of 'The Fed' in 1913 they have
printed enormous amounts of currency. How do you think the U.S.
is paying for Iraq and to rebuild
hurricane damaged areas?
-- Did you
know your investments need to earn about 7-18% per year just to
break even, due to inflation of the U.S. dollar?
-- Workers are now paid with a bunch of
numbers on a check or electronically with
direct deposits. Did you know that a worker was once paid a silver coin
for a day's wage?
-- Did you know that the proliferation of digital photography may
have little effect on silver demand?
Visit the
SILVER ARTICLES page. Enjoy writings by various authors who delve much
deeper into the specifics of silver as wealth and the manipulation
by the inflation of paper currency.
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