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Interested In Investing In Silver?

 

If so, here is some information to make sure you are making the right choice.

 

Why not Gold?

 

The U.S. Gold to Silver Ratio in a strong economy should be a 60:1. With Gold at approximately $1925* and Silver at about $25*, that is a 77:1 ratio.

 

What does that mean?

 

Gold is either 17% to high, or Silver is 17% to low. It is the latter.

 

Due to the mass collection of sell offs from 2008-2016, collectors were selling off their assets. They did not want to lose their homes in a bad economy. This coupled with Russia fighting two simultaneous conflicts in Ukraine and Syria, forcing them to sell off large amounts of Silver every two months, for four and half years. It was approximated that there was 200 metric tons equivalency sold every two months. They were also selling off Gold, driving the price down so low that the four large capacity gold mines shutdown. It costs about $1,308 (USD) to mine an ounce of gold. Unless the mining companies can make 10% ($1,450), they won’t mine it because it is safer in the ground than in a vault. All of it ended in August 2018 when the Russia sell off ended, and the world’s economies were rapidly recovering.

 

By April of 2019, the excess world inventory of Gold and Silver had been “Consumed” by investors, and the price of Silver and Gold began to rise. By September of 2019, Gold had risen back above $1,450/toz. All four large capacity gold mines that had been in reduced operations mode, announced they were coming back into full scale operation. The two in the southern hemisphere began mining immediately. The two in the northern hemisphere restored mining operations in the spring of 2020.

 

In the short-term prospectus (12 months), Silver should outpace Gold, recouping its 15% deficit. With that said, and the decision to invest in silver, what form(s) of silver should you invest in? It depends on the current price of silver. There are three main types, 90%, third party bars and rounds, and NATO government 1 troy ounce (toz) coins and bars.

 

The equalization points for the percent premiums for 90% and third party bars are when the spot of silver is $23.75 at $4 over, and $34 for all three forms, equalizing in percent buy-in premium, with NATO 1 toz at $5 over spot.
These calculations assume a 20% premium minimum (current) for each type.

 

Intrinsic Metal Value (IMV), SLV (Spot price on the market)

 

U.S. Coins 90%: Halves, Quarters, and Dimes
Sold at a 22%* Premium
Pros: protected for their intrinsic metal value, collectable value as well as silver value, and smallest buy-in/sell-off ratio
Buy-In: IMV + 22%: (SLV^)
Sell-Off: 90%

 

Third Party Bars and Rounds
Sold at a 20%* Premium
Pros: stackable
Cons: no collectors premium, guarantee of purity or backed by states on silver and gold standard
Buy-In: SLV > $23.75 (20%)
Sell-Off: 90% if IMV verifiable, otherwise barter

 

NATO 1 toz: American Silver Eagle, UK Britannias, etc.
Sold at a 39.5%* Premium
Pros: guaranteed 1 toz, protected for IMV, gain of collector’s premium after approximately 12 years
Buy-In: SLV > $34 ($8 Premium) or,
Buy-In: SLV > $31 ($7 Premium)
Sell-Off: 90 to 100%

 

YOUR FIRST INVESTMENT IS KNOWLEDGE.

 

If you are going to get the same percentage selling them, then don’t throw 17% of your money away when silver is currently under $34.

 

*values subject to changed based on market conditions

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