How The Silver Deficit Will Drive Up The Price of Silver

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Silver Is Used Up 90% And Ends Up In LandfillOver the past decade, the supply of newly-refined silver has been less than that required to satisfy demand, with this deficit being largely met through reducing silver stocks which were mostly built up during the 1980s, when silver supplies exceeded demand.

The market for the metal is in a supply deficit since around 1990.

Did You Know That Silver Is Rarer Than Gold?

As a result of a 60-year structural deficit, we have exhausted just about all the world’s previously existing silver inventory. That includes just about all world governments’ silver inventory. When the unavoidable silver run occurs, there will be no one to douse the price fire. This can’t be said about any other commodity.

The less supply there is of something to invest in, the greater the price impact will be when demand appears.

No More Silver in Minting

Silver is no longer used in the minting of dimes, nickels and quarters since 1965. The cent now uses zinc, the nickel an alloy of 75% copper and 25% nickel and dimes, quarters and halves contain 92% copper and 8% nickel.

Early this year the US Mint has just announced it has run out of silver bullion blanks, and is suspending American Eagle Silver Proof coins, until further notice.

We are undoubtedly facing a great deal of inflation in the years ahead, which should cause the masses to begin accumulating the metals for capital preservation purposes.

The only real source of silver for new investment demand is silver already held as investment, namely existing world inventories. In other words, since all newly produced silver is already spoken for by industrial and other fabrication demand, the only real silver available for new silver investors is the sale and resale of silver by existing silver investors.

Increasing Investment Demand For Silver

One difference between silver and gold is that for the life of the 60+ years of the silver structural deficit, there was very little, if any, net investment in silver. That has changed in recent years, and it is precisely this change, the rebirth of silver as an investment asset that is a shockingly bullish development.

Think of it – the world draws down and depletes silver inventory for more than 60 consecutive years, exhausting the very source of what is available for investment, and only then collectively decides that silver is a good investment.

Silver appears on the investment horizon at precisely the time there is less available as an investment than ever before.

Silver Is Used Up 90% And Ends Up In Landfill

Are you aware of the role silver plays in your everyday live? World consumption has never been higher and for good reason. Here is just a brief list of some important uses of silver:

•    Jewelry
•    Electronic devices
•    Silver Oxide Batteries
•    Piping
•    Water filtration
•    Solar Panels

A $100 dollar phone contains about worth of 5 cents in Silver. It takes more money to retrieve it, even if the price goes up dramatically.

For one reason, thanks to the Internet and instant, uncensored communications, more people are becoming aware of the investment merits of silver. Though the number is currently small, never in the history of the world has there existed so much money and so many investors looking to deploy that money.

The real silver story is still largely unknown is a powerfully bullish factor, as more investors are bound to uncover the story as time goes by.

Nothing Brings More Attention to an Investment Item than its Rising Price

For the past five years silver has recorded bigger price advances than gold, platinum and palladium. Combine rising prices with a great investment story and you have the potential for an investment rush.

We are in the very early stages of a long-term price boom in silver that will be caused by investment demand. The combination of an extremely small and tightly-held existing investment inventory, combined with a large potential investor base, funded with the largest buying power in history, hungry for the next hot investment, and still unaware of the true silver story is the stuff that makes investment dreams.

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