With gold closing over $1,400 an ounce and silver easily breaking through $15.00 an ounce, the world is discovering that there are a lot of important reasons to own gold and silver.
Reasons like government debt and money printing. Wealth preservation. Financial privacy.
Or just to make money!
Today’s message is for those of you looking for good old-fashioned profits!
Right now, silver is less than a third the price it hit in 1980!
Think about that a moment. How many other investments are less than a third the price they were almost 40 years ago?
Today, everywhere you look, things are higher. In 1980 the median price of a US home was only $47,200. Today it is $226,800.
Oil topped out a $40 a barrel back in 1980. Today it is $54.
At the beginning of 1980, the Dow Jones Industrial Average was 824. Today it is around its all-time high of 27,000. “It’s too late to be bullish” on stocks says a London analyst.
Everything is higher today. Everything except silver.
Is that because no one needs silver?
On the contrary. Because of silver’s dual role – as an industrial metal and prized for its monetary properties – demand rises over time. Silver demand for coins and bullion bars shows powerful growth. Some 60 percent of annual silver supplies are consumed by industrial applications. But new silver mining cannot keep up with overall demand for silver. The shortfall has largely been made up over the decades by scrap silver recovery and by net sales from government stockpiles. But scrap recovery is way down and sales from once huge government stockpiles have now ground to a complete halt as those stockpiles have been depleted.
Today at only $15 an ounce, silver is less than a third the price it topped out at in 1980, $50 an ounce. And that wasn’t just a one-time thing. Silver moved back up to that range – to over $49 an ounce – again in 2011.
Let me state the case I have made here differently. What is more likely to triple in value, the stock market that is already at all-time highs, or silver, priced today at less than one third its 1980 and 2011 highs?
Because somebody wise once suggested that the key to making money is to buy low and sell high, there are a lot of things we might consider to be attractive investments at their prices of 40 years ago. It would make great sense to buy real estate and stocks at the prices that prevailed back in those days.
But you can buy silver today for less than a third its prior highs. And that is a shining profit opportunity!