Silver is currently being referred to as the new Gold. Why? Because when gold prices increase, such as they have recently, investors seek a lesser expensive alternative. That’s why silver is called poor-man’s gold.
Coin and bar sales have been so robust — the U.S. Mint now is rationing American Eagle coins — that dealers say they can’t meet small-investor demand.
Financial experts are of the opinion that the present economic problems the world is facing are going to get worse. Those who study financial trends are urging the public to convert their paper money into tangible assets. The feeling is that sooner or later, physical assets trump paper.
Experts feel that Silver is once again poised to skyrocket just like it did in the 70’s. Back then, an ounce of Silver was just north of $1.00. It kept rising and rising to over $47.00, for a percentage gain of over 3500%! At the time of this writing, an ounce of Silver goes for a little over $17, up over 30% this year. I have read that Analysts are expecting a rise to over $50.00 an ounce within the next 2 quarters. Wow!
Here is the fact. The World is running out of Silver. It is used in World Currencies, jewelry, the medical industry, clothing, photography, electronics, solar energy, water purification, silverware, nuclear power plants , etc.
How does Silver differs from Gold? To put it quite simply, Silver is a consumable, it gets used up. For the most part, there are no real or synthetic materials that can be used in place of Silver. We cannot live without it.
Over 90% of the silver that is mined is used for industrial purposes.
According to the Law of Supply and Demand, when the supply of an item or material decreases while the demand is increasing, the price of the said material will increase substantially.
Few Americans that are aware that in 2002 it became a law that the government must purchase silver back from the public when the United States Silver Reserves dip below a certain level.
If you read s.2594, or Support of American Eagle Silver Bullion Program Act section 2, you will see that Congress finds that
(1) The American Eagle Silver Bullion coin leads the global market, and is the largest and most popular silver coin program in the United States;
(2) Established in 1986, the American Eagle Silver Bullion Program is the most successful silver bullion program in the world;
(3) From fiscal year 1995 through fiscal year 2001, the American Eagle Silver Bullion Program generated revenues of $264,100,000 and sufficient profits to significantly reduce the national debt;
(4) with the depletion of silver reserves in the Defense Logistic Agency’s Strategic and Critical Materials Stockpile, it is necessary for the Department of the Treasury to acquire silver from other sources in order to preserve the American Eagle Silver Bullion Program
To summarize, The American Eagle Silver Bullion Coin plays an integral role in our nation’s economy. The government cannot stop making them, being that profits have dramatically reduced the national debt.
In addition to the collection of the Silver American Eagle Bullion Coins there is a noticeable increase in sales of Numismatic Collectible Coins. Harry Newton, editor, Technology Investor Publication, writes this: “Interesting times ! We are seeing a lot of movement into collectible and investment currency and coins especially higher graded coins. There’s been a 35% increase so far this year in prices and about a 200 % in volume. In the high grade values , Proofs 65 and up and in Mint States MS 65 and up there is substantial demand with record prices being reached , we understand investors are more comfortable holding hard assets like coins than actual cash Dollar or other currency balances and there is a persistent daily move out of the latter into hard assets.”
Not all American Silver Eagles are slabbed and graded Mint State (MS) coins. Only about 10% are MS-70. Unlike bullion coins that are valued solely on the basis of their silver weight, the value of a numismatic silver coin is determined by several factors: its rarity, the number of coins originally minted, history and the age and condition of the coin.
Numismatic coins are bought and sold within the coin collecting community with little regard for today’s silver price. Numismatic coins are cherished for their beauty, historical significance, and their potential investment value. Hence, numismatic coins sell at a significant premium over their intrinsic silver content.