Given imbalances in future pricing there is the distinct likelihood of an absolute price explosion in silver. Given the existing shortfall of supply and growing demand, we feel silver prices can only move upwards long-term. Secondly, when investors do rush to take delivery, there will not be enough silver to go around. First there is a noticable disconnect between physical market supply and paper pricing. Our research revealed a similar situation in silver futures, which creates comparable problems. This means that for every ounce of gold promised there are 293 investors who will be left empty-handed if they try to take delivery. In 2016 reported that the COMEX had promised out 294 times more ounces of gold on paper than they were able to deliver. When you take a close look at the futures market as it pertains to precious metals, then the issue becomes very clear. In most cases, when the contract ends, the buyer doesn’t actually take delivery of the silver but either liquidates the position or takes out another speculative contract. You see, today’s silver prices come directly from futures contracts. While this is most often the case with equities, we firmly believe this to be the case with silver prices today. Just because something may trade for a certain price on a given day, it doesn’t necessarily mean that’s what it’s really worth. If there is one thing investors have learned over the past few decades, it’s that financial tides can move quickly. Clearly, off the charts investor demand shouldn’t cause lower prices, particularly since silver has fallen in value 70% since 2011 highs and 12% last year alone. Most mints around the world are experiencing the same insatiable investor demand for physical coins and bars. We’re not the only country reporting record production, either. Mint reported over 2.7 million Silver Eagles sold in the first day of sales alone! This is a staggering number considering that during the 1990s there were entire years where only four million coins were issued. Mint struck and sold over 47 million Silver American Eagles, an all-time record. Newcomers to the silver market are surprised to learn that while prices have been falling the past few years, investment demand for physical silver continues to set records around the globe.
It’s an irreplaceable component of the modern age with new uses being discovered every year.
Silver has been considered sound money for thousands of years and is the only commodity you can buy today for less than it was in 1980. In our opinion, silver is the most misunderstood, mispriced, and undervalued commodity on the face of the planet. If you have any questions regarding what silver bullion to own please call or email a Gold and Silver Bullion Advisor at Austin Rare Coins & Bullion… we are always happy to help with your goals and objectives. Further suggestions are Silver Canadian Maple Leafs, Australian Koala & Kookaburra Silver Coins, Buffalo Silver Rounds, China Panda Silver Coins, Silver Austrian Philharmonics, & Silver Bullion Bars with various designs. You can also add world silver coins and silver bars for more diversity. One of the best silver coins to own, The Silver American Eagle, is the most popular silver bullion coin in the world today and it has been struck every year since 1986. We also believe the key is owning private, physical silver coins or bars that you control and hold in your own possession. Today, more than ever, we view silver as a solid store of value and a prudent investment to any properly balanced and diversified precious metals portfolio.
Silver remains the most misunderstood of all four major precious metals and appears to offer an extraordinary amount of value at current levels. When starting a collection or adding to your precious metals holdings we will always recommend diversifying with private silver coins.
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