Silver to Steal the Show This Year
Source: Commodity Online (11/22/10)
"USGS says only about 14–25 years worth of silver remain in the ground."
Worldwide silver production can't keep up with world demand, which grows daily. Unlike gold, silver is consumable in most industrial uses. In 1942, the U.S. government had over 3 billion ounces of silver, but it ran out completely several years ago. And more than 90% of all the silver mined in the past 5,000 years has been used up.
Gold supply, on the other hand, is more than five times that of silver.
Current world silver demand is around 900 Moz./year, but average worldwide silver production is just 480 Moz. In other words, we're producing just slightly more than half of the silver we use every year.
Gold has been going through roof, but silver has yet to follow. The gold:silver ratio, currently at 51:1, has skewed way out of the historical norm of 20:1. World demand is growing, while.
Compared to gold, silver is still relatively cheap even though it's already risen nearly 100% this year alone.
Meanwhile, silver coin sales are set to climb as investors seek to protect their wealth from weakening currencies.
The Royal Canadian Mint said last week that silver coin sales will jump more than 50% this year. And the Perth Mint may match that gain.