The upcoming debt crisis leads to the silver boom?
If you have a certain amount of money available, you can not put them in two different plants at the same time. Either you decide for gold or for silver as a hedging instrument against american debt and the increasing decay of the us dollar. However, the investment decision should be taken mainly by the point of view to set to that noble metal, which has the highest increase in increase in increase. And this was allowed to be clearly silver.
Silver is scarcer today, as the noble metal is increasingly being in demand by the booming growth markets of china and india. Since the fundamentals of the silver market are different in turn than that of the gold market, the silver price should decouple with a strong correction of the gold price from the correlation to the gold. Although it is also for the silver a juffet potential to about $ 9, but a correction was allowed to be short duration if it takes place at all. Silver increasingly gains not only as an industrial metall and jewelry area becoming increasingly important, but above all as substitute food against the sick us dollar.
Protection in times of crisis
The production capacity of silver, as well as gold, are limited in contrast to infinitely increasing paper money production, which has made silver a rare and precious value destruction medium. Especially in economic times of crisis, which can be sent to us at any time, it makes sense to invest in precious metals. Here, silver should make up the lowenant part, with a weighting of 75% silver and 25% rare gold munizes.
However, if silver and gold are again advancing to a serious competition to the trust-based paper valute, the american central bank could come up with the idea of iing a possession of ownership and trade for certain precious metals. In the 20th. While the possession of gold in the us was banned twice and pursued twice, but such a maaking has never been extended to the possession of silver. That’s because silver is an industrially indispensable metal, which is why a ban does not enforce goods. In addition, silver is kept only in relatively small amounts from the central banks, which is a price manipulation by this disembarkable.
The rarity decides
Although the silver content (in the ground) is much gross compared to gold, yet silver (over the ground) is rarer and thus more valuable than gold. During about 95% of the quotial gold claim goes into the jewelery industry and is consumed less than 5% of the industry, it is exactly the other way around the silver. Almost all of the year-round new intake of silver is consumed by the industry. In addition, the offer from the new production of silver has no longer sufficient for years to satisfy the rising industrial demand.
Gold is demanded and hoarded, while silver is consumed immediately after his claim. While the uberrird’s gold ribbon survive, the silver spreading relative to gold, which is currently about ten times as much gold as silver on our planet. Silver is currently producing about seven times as often as gold (1650 produced the world 44 times as much silver as gold). A special geological nature of silver is that the deeper one drills, the lower the silver part. Most silver is briefly found below the earth’s surface.
Conservative estimates ame that it is only 100-250 million. Ouzes to silver bullion storage. 50 years ago, the us government clarified 4 billion ounces of silver, which made up about 25 ounces per us head. Today, this inventory makes only almost 20 million ounces, which corresponds only about 0.05-0,1 ounces for every us burger.
Most market participants agree to the raw material markets, to settle their silver transactions in cash (and not physically). If this setting is changing, there is not a lot of stock in order to ensure a physical delivery, which could lead to a price explosion. For the near future, the gold-silver ratio is crucial for the silver price — not that of the price of 59 ($ 560: $ 9.5), but that of the ratio of the available gold to the silver from 172 ($ 896 billion: $ 5.2 billion). Money is therefore 172 times more gold than silver. Therefore, one can only come to a single conclusion, namely silver as plant food to the gold to prefer. If the gold price increases by merely a us dollar, the value of the gold gesture increases more in value than that of the entire silver. Grobinvestors such as bill gates and warren buffett have already recognized this a long time ago and built on the silver market, one of the closest commercial labels in the world, rough silver positions.
Silver bull market ante portas
Silver is not just a first-class value-saving agency, but it can not be suggested. Silver, however, has a pair of special properties, which is to be acquired:
- No western central bank has significant silver reserves.
- Industry demand is increasing.
- The rough bearings are reduced.
- Even with a cycle slump, silver can continue to rise as it is obtained as an example of base metals.
These reasons will lead to the fact that the silver price will increase strongly in a noble metallhausse than gold. So gold rose at the bull market for precious metals from 1960 to 1980 from 35 to 850 usd, an increase of about 2.400 percent. At the same time, however, silver from 90 cents rose to 50 usd, an increase of 5.600 percent. This means that silver 2.3 times faster than gold has risen. The price ratio of gold to silver was between 1792 and 2002 about 31.32. Currently, the ratio amounts to about 59, so that this average rating has already been a silver price of about 18 usd. Silver was evaluated after his physical frequency, d.H. After his occurrence in the earth’s crust, the ratio would be about 17.5: 1 (source: agi data sheet), which corresponds approximately to the last monetary ratio of 16: 1. The fair silver price therefore had to be about 34 uds. Therefore, silver can only be classified as a strong buy.
Dr.-ing. Artur p. Schmidt is the publisher of the financial portal entrepreneurcockpit, which specializes in the analysis of the optimal times for the purchase and sale of shares, commodities and preservation. He is the author of numerous articles on corporate management, international financial markets and technology trends.