- Gold to Silver Ratio
Historically the gold to silver ratio was maintained that a certain amount of silver could buy 1 oz of gold. Long ago, a U.S. law fixed the gold silver ratio at 1:15. Today's gold to silver ratio sits at about 1:63.
- Inflation Past and Future
Just as gold is a great inflation hedge, so is silver. . .I have not seen anything more compelling than silver to protect and dramatically increase my wealth simultaneously.
- Increasing Silver Industrial & Investment Demand
Last year global silver demand hit 888 million ounces, while worldwide mining production totaled only 680 million ounces, thus creating a 208 million ounce deficit. Silver investment demand is on the rise, as well and perhaps may soon surpass that of industrial demand.
- The Real Silver Advantages: Leverage and Availability
People can get the same level of protection from silver as from gold—at a more affordable price.
- Dwindling Silver Stock Piles
CPM data shows that world silver stockpiles have gone from over 2 billion ounces in 1990 to under 300 million ounces in 2007. Further, silver demand has outpaced production by 156% annually for 19 consecutive years.
- Eventual COMEX Short Squeeze
There are a handful of bullion banks hold excessive short positions in both gold and silver. However, the short positions in silver are much larger—the largest for any commodity.
- Silver Leasing
At times, gold/silver producers didn't have enough gold or silver to sell, so they leased the metals from others (like central banks) that had ample supplies at the time. The producers then would sell these metals to their customers. The leasing created a phantom supply of gold and especially silver.
7 Reasons Silver Will Make You Rich
Source: John Edwards, GoldStockMania (4/20/10)
"Silver leasing. . .created a phantom supply of silver."