Our world is, quite literally, running out of silver. World demand for silver exceeds annual production and has every year since 1990 – a total of 14 straight years! Above ground stockpiles of silver are low, shrinking rapidly and approaching zero. Since the end of WWII, for example, the U.S. government – once the largest holder of silver stock on the planet – has dumped billions and billions of ounces of silver onto the world market, effectively depressing silver prices. Today, that government silver hoard is gone… and now the U.S. government is a buyer of silver.
Few primary silver mines are operating due to currently low silver prices – approximately 75% of newly mined silver is actually a by-product of base metal mining of lead, tin, copper and zinc. Reopening abandoned primary silver mines or developing new mines is a timely and costly process, and is unlikely to occur until silver prices stabilize at a considerably higher price per oz., according to natural resource expert John Myers, editor of widely-read newsletters, “Outstanding Investments” and “Resource Trader Alert”.
Demand for Silver Is Growing Every Day
At the same time, investment demand for silver is building throughout the world and could increase greatly in the months and years ahead.
New uses for silver – such as “invisible silver,” a transparent coating of silver on double pane thermal windows… high temperature superconductor (HTS) electrical transmission wire for the world’s power grid systems… and silver-based biocides, an alternative treatment for wood preservation, are continually being developed, further increasing the demand. All this at a time when easily available supplies of silver are quickly disappearing.
Silver is an industrial as well as monetary metal. Unlike gold, which is held and hoarded, the majority of silver is consumed in manufacturing processes, effectively depleting the available supplies. China, the world’s fastest growing industrial powerhouse, is consuming silver (and other metals) at an incredible rate as it continually expands its
manufacturing capacity. Other Asian countries, most notably Japan, are also significant buyers of silver for industrial as well as for saving and investment purposes.
All this adds up to a compelling case for buying silver now
Looking at the current supply/demand picture for silver and its current price levels, we believe this is the greatest opportunity in precious metals in 20 years.
We are not alone in our thinking. Warren Buffet, chairman of Berkshire- Hathaway and considered by many to be the world’s most successful investor, is said to own over 100 million ounces of physical silver. Bill Gates, founder of Microsoft and the world’s richest man, recently acquired more than 10% interest in Pan American Silver Corp., a leading silver producer with nearly 750 million ounces of silver reserves.