Monday 10 November 2008

Silver Investment Strategies

If you’ve been looking for the next great investment opportunity, this may very well be the most important blog you'll ever read!

Here’s why:

I’ve looked into the future and here is what I’ve seen:

The price of silver will soon skyrocket!
It’s true. Current silver stockpiles will deplete, production will not be able to keep up with demand, demand will keep rising, and silver prices will soon explode.

Don’t believe me? Just look at some of the well-known investors who have been quietly buying hordes of silver:

Warren Buffett’s Smart Money is in Silver

Let’s think about his for a moment. Who would you say is a smart investor?

How about Warren Buffett?
http://www.silver-savvy.com/?hop=various1

Known as "the Oracle of Omaha," Buffett is Chairman of Berkshire Hathaway and arguably the greatest investor of all time. His wealth fluctuates with the performance of the market, but this year, according to Forbes Magazine, he is worth $42.9 billion, making him the second richest man in the world. Let’s see what Warren Buffet thinks about silver.

Billionaire Warren Buffett expressed concern over stock market exuberance during the fourth quarter of 1998. In particular, he was concerned with the overvaluation in the technical sector and his own stock in the Berkshire Hathaway company. This stock was not keeping pace with roaring high techs and the Buffet was beginning to lose money.

So Warren Buffett announced that he was accumulating silver and acquired 130 million ounces. Folks, that is MORE than the COMEX has. That is about 1/3 of the world supply! His public endorsement of silver sent the prices up to $7.50 an ounce from just under $6.00 in less than a month. It was then discovered that Mr. Buffett was taking delivery of March silver while selling in July. As quickly as prices soared, they plunged.

All told, analysts estimated that Mr. Buffett cleared approximately 10% in about two weeks for an amazing $70 million gain!

When the Internet bubble burst, Warren Buffet’s silver stash held its value remarkably since he accumulated the bulk of the silver at prices under $5.00 per ounce. If Warren Buffett is putting money into silver and buying up 1/3 of the known silver stockpile, what does that tell you? It tells me to buy silver!

George Soros’ Smart Money is in Silver
http://www.silver-savvy.com/?hop=various1

What about others? The billionaire trader, George Soros, thinks silver is worthwhile. George Soros is known as a Hungarian émigré philanthropist, a proponent of human rights and the “open society,” and, just incidentally, a financier—one of the richest men in the world.
Armed with a study by ICC, and with the support of Bernard Kouchner, chief of the UN Interim Administration in Kosovo (UNMIK), Soros attempted to acquire the most profitable mining complex in the Balkans.

In September 2000, in a hurry to take the Trepca mines before the Yugoslavian election, Kouchner stated that pollution from the mining complex was raising lead levels in the environment. The mines were closed for "health reasons." Soros invested $150 million in an effort to gain control of Trepca's gold, silver, lead, zinc and cadmium, which make the property worth $5 billion. Additionally, Mr. Soros and his brother Paul bought 26 percent of Apex Silver Mines in the US.

Bill Gates’ Smart Money is in Silver
http://www.silver-savvy.com/?hop=various1

In 1999, Bill Gates got in on the scene. The CPM Group was warning that silver demand would fall off a cliff because of the global photographic market. Pan American Silver [PAAS], whose three mines make it a dominant force in the silver market, disagreed wholeheartedly with CPM Group. Apparently, Bill Gates agreed with Pan American Silver and bought a 14% stake in the company for about $15 million.

Gates said that it is difficult to build a large position in silver with just 20 major mines worldwide, of which Pan Am Silver owns three. New supplies are dwindling with little active exploration and no new silver discoveries in recent years. At the time of the purchase, only Pan Am Silver was engaged in significant exploration.Gates is also rumored to be in possession of over 100 billion gold and silver pieces.

Bob Macmin’s Smart Money is in Silver
http://www.silver-savvy.com/?hop=various1

Then there is Bob McNeil. You probably haven’t heard of him. YET. He's the chairman of Gold Coast-based Macmin Silver. He is planning to develop Australia’s only pure silver mine after 12 years of work.
http://www.silver-savvy.com/?hop=various1

Is Silver A Sterling Investment?

With banks collapsing all around us, property prices plummeting, and Interest rates in freefall, where should you be Investing In these turbulent times?

The real case for investing in silver lies not on the demand side (although this is clearly growing), but on the supply side. Believe It or not, but silver really is quite rare. There are only 22 or 23 completely pure silver mines operating around the world , and overall production was flat this year and is expected to be flat again next year.

Mined silver has been insufficient to meet demand every single year for the last 15 years. According to the CPM Group, a commodity research provider based in New York, newly refined supply fell short of industrial demand by 44.5 million ounces in 2004 and will be short by another 31.4 million this year. This hasn't been a huge problem because the world has been able to meet the deficit from inventories, and sales from official stockpiles.

The US government stockpile is all but gone and sales from other official sources appear to be declining too (China sold over 60 million ounces in 2003, for example, but only 34 million in 2004). This means that the remaining reserves of above-ground metal held by the central banks of China, Russia and India from the melting down of withdrawn coinage are running down. In 1990, says CPM, there were around 2.2 billion ounces of silver held in above-ground stocks. Today, there are probably only about 300 million. That's a 50-year low.

Unlike gold, silver gets used up. About 95% of the gold ever mined still exists in above-ground refined form. In contrast, about 95% of the silver ever mined has been consumed by electronics and jewellery. And as a silver ring or necklace, for example, costs about $40 an ounce (spot silver currently costs just over $12 an ounce), the silver is not recoverable or recyclable at a profit to the silver jewellery buyer until we exceed those prices.

So while gold is skyrocketing in price, due to central banks switching from selling to buying, silver is going to skyrocket in price much more due to the silver shortage.

Investing is Silver has never been more accessable, and can be started for less than $50.
In fact it is possible to get free silver coins delivered to your door each month.

An excellent resource for Silver Investing is here: www.freesilvercoins.co.uk

An excellent resource for Silver Investing is here: http://www.freesilvercoins.co.uk