Silver has been on fire over the last three years — substantially outperforming its spotlight-grabbing cousin, gold.
Because we believe this bull run is far from over, we advise investors to always maintain exposure to the precious metals markets. Even if you haven’t yet participated in the run-up of both gold and silver, I’m glad you’re ready to take a look at the investment potential of silver.
The question every investor faces in a bull market is: Do I buy now, anticipating prices will continue higher — and chance getting clobbered if a correction arrives? Or do I wait for a pullback and possibly miss out on big gains? There’s risk either way.
Our goal in this report is to suggest various ways you can invest in silver, while underscoring the importance of patience and discipline. Investors must remain patient to avoid chasing silver, overpaying, and draining their cash. Instead, we recommend that you use temporary price declines to steadily accumulate the best silver stocks and your preferred form of bullion.
Looking back after this bull market has finally run its course, we think gold and silver will have amply rewarded those who bought smart, had meaningful exposure, and stayed the course.
Silver: The Lay of the Land
There is ample data on the silver market to consider, but there are two specific issues regarding supply and demand that are critical to understand.
The first is industrial use. Demand from a number of industries that use silver has been flat or falling. Household demand for silver like cutlery, flatware, and candlesticks hasn’t risen in ten years. Jewelry fabrication is up but a blip. With the shift to digital photography and image storing, use in photographic film processing continues to fall. And yet, total demand from industrial users keeps climbing.
So what’s driving industrial demand?
Uses for Silver Are Growing
Since 1999, consumption in electronics has increased 120%. Silver use in solar panels began in 2000, and usage is up 640% since. Silver was first used in biocides (antibacterial agents) in 2002 and, while a small percentage of total silver use, it has grown six-fold.
The point is that not only are the number of uses for silver growing, the demand within each of those applications is rising as well. This is important to keep in mind because, traditionally, the industrial component of silver tends to keep the price soft in a poor economy – and Doug Casey is convinced we’re on the cusp of the Greater Depression.
However, these increasing sources of demand are now more likely to keep a floor under the price in the future. In fact, the Silver Institute forecasts that total industrial use of silver will rise by 36% over the next five years, to 666 million troy ounces/year. That’s a lot of silver, meaning this portion of demand, which is roughly 60% of all fabrication, isn’t letting up anytime soon.
The second issue is mine supply. Silver mine production has been increasing over the past decade, largely due to rising prices, allowing companies to ramp up production and bring more metal to the market. In fact, global mine production is up 33% since 1999. Meanwhile, total demand, as you’ll see in the chart below, is also rising.
Mine Production Can’t Keep Up with Demand
So what’s the concern?
In spite of miners digging up more and more silver, production alone can’t meet global demand, and the gap has to be filled by scrap silver coming to market.
And there’s a catch with scrap. While scrap metal comprises about 20% of silver’s total supply, many of these new applications are difficult to reclaim. Some applications contain such small amounts that they’re uneconomic to recapture, such as many biocidal and nanotechnology applications. With others it’ll be a long wait. Solar panels, for example, have a 20- to 30-year life. Still others are waiting on more effective recovery programs; more than half of all silver in cell phones, TVs, computers and other electronics, for instance, still ends up in landfills.
In other words, a growing portion of the silver that’s consumed won’t be returning to the market anytime soon.
If 2,600% growth doesn't interest you, ignore this.
Chinese Panda Silver Dollars are highly sought after and hard to get. Now I can offer you an incredibly rare opportunity on a coin only a few will be lucky enough to own.
Dear Subscriber,
I recently had a conversation with the Deputy General Manager of the China Mint. We were discussing the huge worldwide demand for the China Panda Silver dollar.
I shared with him just how fiercely my own clients have always snatched up these large silver coins.
At the end of our talk, I lamented the rumor I had heard that no more 2011 Silver Pandas could be ordered from the mint. After a dramatic pause, he gave me a sly smile and said:
"Don't believe everything you hear!"
He then explained to me that, due to our impressive sales of previous Panda coins, he had personally secured a final allocation for the U.S. market and he wanted to know how many I was interested in.
What do you suppose my reaction was?
I said that I would take them all.
And why not? Every year the China Mint strikes its world-famous Panda Silver Dollars. And every year they sell out. So what's different about the 2011 Panda Silver Dollars?
In a word, relationships.
Since the phenomenal success of the Beijing 2008 Olympic Games coin program, I've established a very close working relationship with the China Mint. Thanks to this great relationship, I now have prime access to new releases, a rare privilege for any coin distributor.
In today's rapidly growing market, the biggest buyers of Chinese coins are now the Chinese themselves - some 1,300,000,000 to be specific. And a special relationship means the difference between getting a piece of the action and coming up empty handed.
Do You See The Buying Opportunity Here?
Panda Silver Dollars are the most popular and sought-after of Chinese precious metal coins. With each passing year, acquiring even a small quantity for sale outside
of China is becoming a bigger and bigger challenge.
Why? Keep in mind that the China Mint doesn't come close to striking enough Panda Silver Dollars to satiate its domestic demand. In 2009, the Mint produced 600,000 new Panda Silver Dollars. By March, just three months into the year, the entire supply was gone, leaving hundreds of thousands of collectors short.
Compare that modest quantity to the number of 2009 Silver Eagles, the U.S. equivalent of the Silver Panda, struck that same year by the U.S. Mint: 30,459,000!
That's why my relationship with the China Mint could become a gold mine for you. As it turns out, it's more than the special deal I was able to negotiate.
When I submitted the coins I purchased to PCGS for independent grading, I was astounded at the results. From among the thousands of coins I bought, PCGS identified a tiny trove of near flawless Mint State 69 Panda Silver Dollars.
MS69 is a mere one point shy of absolute perfection. MS69 coins are among the most sought after by collectors.
Only One in One Thousand!
In its entire history of grading coins, up through 2009, PCGS has awarded a total of just 7906 Panda Silver Dollars with the coveted MS69 grade.
Stack this small number against the entire mintage of one-ounce Panda Silver Dollars from 1989 through 2009: more than 8,293,000 coins. Which amounts to one PCGS MS69 out of every 1,049 coins minted.
Could This Silver Panda Sell For $680?
You Can Own It For As Little As $78.50!
I did the math and I realized I was sitting on an incredible potential windfall for newsletter readers.
Consider this: An ungraded Silver Panda would have sold for around $24.95 back in 2000. Now, imagine you had submitted that ungraded Silver Panda to PCGS for grading. Then, if you were lucky, imagine that your Silver Panda came back with a near perfect M69 grade.
Today that 2000 Chinese Silver Panda MS69, sells for as much as $668!
Of course no one knows how valuable this coin could be in the future. But that's more than 26 times the original ungraded price. In other words, a 2,600% growth!
Today you can own this extra-ordinary Gem MS69 2011 Silver Panda for as little as $78.50! That's mere pocket change!
Other past year Silver Pandas show similar results. Just look at these values for coins that are just a few years old:
2001 Silver Panda MS69 $288
2002 Silver Panda MS69 $340
2004 Silver Panda MS69 $257
2007 Silver Panda MS69 $144
2009 Silver Panda MS69 $134
I urge you to act today before these remarkable treasures are gone.
Order Your Nearly Flawless 2011 PCGS MS69 Panda Silver Dollars RISK FREE-And at a Fantastic Deal! There's no telling what these 2011 Perfect PCGS MS69 Panda
Sincerely,
Nicholas J. Bruyer, Founder and Chairman
First Federal Coin Corp
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发表于 15-11-2011 02:29 PM
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