SIlver and it's future for the next 10 years

KingHenryI
By KingHenryI on Fri, Mar 14, 2014 - 7:21am

So I'm a young investor that plays poker for a living and has down pretty well overall and sometimes has an up and down financial rollercoaster at times. but is interested in silver as a potential to hoarde money away for later and for pure fun of collecting all the 1 0z coins and bars... what you guys think about silver and its future?  curenlty there is no currency in the world that is back by a metallic standard and more importantly it just looks fun. would like all sorts of opions and advice...thanks for reading :)

 

 

 

6 Comments

Oliveoilguy's picture
Oliveoilguy
Status: Platinum Member (Offline)
Joined: Jun 29 2012
Posts: 578
Silver is Poor Man's Gold

Since silver has historically been the medium of exchange for the common person, it might have the brightest future as the daily coinage after the dollar  (fiat) collapse. 

Sounds like you know when to walk away from the table. This might be a good time to cash in all the stock market chips and horde some silver.

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5727
Why I Own Silver

I laid out my investment thesis for silver in a 2011 article which I will now reproduce here....and note that nothing at all has changed in my views between then and now:

The Difference Between Silver and Gold

Often people ask me if I hold goldandsilver as if it were one word. I do own both, but for almost entirely different reasons. Gold, to me, is a monetary substance. It has money-like qualities and it has been used as money by diverse cultures throughout history. I expect that to continue.

There is a chance, growing by the week, that gold will be remonetized on the international stage due to a failure of the current all-fiat regime. If or when the fiat regime fails, there will have to be some form of replacement, and the only one that we know works for sure is a gold standard. Therefore, a renewed gold standard has the best chance of being the ‘new’ system selected during the next bout of difficulties.

Silver is an industrial metal with a host of enviable and irreplaceable attributes. It is the most conductive metal known, and therefore it is widely used in the electronics industry. It is used to plate critical bearings in jet engines and as an antimicrobial additive to everything from wall paints to clothing fibers. In nearly all of these uses, plus a thousand others, it is used in such vanishingly small quantities that it is hardly worth recovering at the end of the product life cycle -- and often isn’t.

Because of this dispersion effect, above-ground silver is actually at something of a historical low point. When silver was used primarily for monetary and ornamentation purposes, the amount of above-ground, refined silver grew with every passing year. After industrial uses cropped up, that trend reversed, and today there are perhaps 1 billion ounces above ground, when in 1980 there were roughly 4 billion ounces.  

Because of this consumption dynamic,  it's entirely possible that over the next twenty years not one single net new ounce of above ground silver will be added to inventories, while in contrast, a few billion ounces of gold will be added.

I hold gold as a monetary metal. I own silver because of its residual monetary qualities, but more importantly because I believe it will continue to be in demand for industrial uses for a very long time, and it will become a scarce and rare item.

Yes, silver remains my favorite 'Rip Van Winkle' investment idea.  Buy it and forget about it.  In twenty years you will be glad you did.

troubleticket's picture
troubleticket
Status: Member (Offline)
Joined: Jun 9 2011
Posts: 1
Silver

20 years?

I started buying 10 years ago, and I am already tickled pink!

J

Wildlife Tracker's picture
Wildlife Tracker
Status: Gold Member (Offline)
Joined: Jan 14 2012
Posts: 403
From a US perspective...

Silver is a NO brainer. I made these videos last year, but it saves me from uploading the charts

Now, Mexican mining production DID pick up throughout the rest of the year and I have not gone through all the data yet for 2013 for an update as most of it is still not available. Still, interesting trends.

Also, I posted these charts the other day

http://www.peakprosperity.com/discussion/84938/usgs-released-2013-silver...

Silver is in high demand in the United States and we are HIGHLY dependent on foreign countries to meet that demand. That makes silver an awesome investment within the United States and probably still an awesome investment elsewhere.

HughK's picture
HughK
Status: Platinum Member (Offline)
Joined: Mar 6 2012
Posts: 761
Great videos, WT!
Wildlife Tracker wrote:

Silver is a NO brainer. I made these videos last year, but it saves me from uploading the charts

Now, Mexican mining production DID pick up throughout the rest of the year and I have not gone through all the data yet for 2013 for an update as most of it is still not available. Still, interesting trends.

Also, I posted these charts the other day

http://www.peakprosperity.com/discussion/84938/usgs-released-2013-silver...

Silver is in high demand in the United States and we are HIGHLY dependent on foreign countries to meet that demand. That makes silver an awesome investment within the United States and probably still an awesome investment elsewhere.

Wildlife Tracker,

Thanks for the great videos on silver.  On the second video, is that a bear track or a skunk track, or something else?  At first, I thought it was a bear track, but the snow wasn't broken, which made me wonder if it was something lighter.

Cheers,

Hugh

Wildlife Tracker's picture
Wildlife Tracker
Status: Gold Member (Offline)
Joined: Jan 14 2012
Posts: 403
Thanks Hugh

It was a black bear out in Lake Tahoe, CA. Good observation on weight and track registration. It was on a ski trail so the light snow (fresh snow) on top of the compacted snow from the ski traffic would make it appear like the bear was "light-footed." Also it was sunny so it melted a bit after the fact.

I'm a footprint nerd so I show off tracks a lot.

 

 

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