Silver is currently referred to as the new gold. Why? Because when gold prices rise, as they have recently, investors are looking for a cheaper alternative. Therefore, silver is called the poor man’s gold.
Sales of coins and bars have been so robust – U.S. Mint is now rationing American Eagle coins – that dealers say they cannot meet demand for small investors.
Financial experts believe that the current economic problems facing the world will get worse. Those studying economic trends are urging the public to convert their paper money into tangible assets. The feeling is that physical assets sooner or later trump paper.
Experts believe Silver is again ready to skyrocket, just as it did in the 70s. Back then, an ounce of silver lay just north of $ 1.00. It continued to rise and rise to over $ 47.00 for a percentage gain of over 3500%! At this point, an ounce of silver is writing for just over $ 17, up over 30% this year. I’ve read that analysts expect an increase to over $ 50.00 per share. Ounce within the next 2 quarters. Wow!
Here’s the fact. The world is running out of silver. It is used in world currencies, jewelery, the medical industry, clothing, photography, electronics, solar energy, water purification, silverware, nuclear power plants, etc.
How does silver differ from gold? To put it simply, Silver is a consumable it is used up. For the most part, there are no real or synthetic materials that can be used instead of silver. We cannot live without it.
Over 90% of the extracted silver is used for industrial purposes.
According to the law of supply and demand, when the supply of a commodity or material decreases as demand increases, the price of the said material will increase significantly.
Few Americans are aware that in 2002 it became a law for the government to buy silver back from the public when the United States silver reserves fall below a certain level.
If you read p.2594, or support for the American Eagle Silver Bullion Program Act, section 2, you will see that Congress finds that
(1) The American Eagle Silver Bullion coin leads the global market and is the largest and most popular silver coin program in the United States;
(2) The American Eagle Silver Bullion program was founded in 1986 and is the most successful silver gold program in the world;
(3) From fiscal year 1995 to fiscal year 2001, the U.S. Eagle Silver Bullion program generated revenue of $ 264,100,000 and a sufficient surplus to significantly reduce national debt;
(4) with the depletion of silver reserves in the Defense Logistic Agency’s Strategic and Critical Materials Stockpile, it is necessary for the Treasury to acquire silver from other sources to maintain the U.S. Eagle Silver Bullion program
To summarize, the American Eagle Silver Bullion Coin plays an integral role in our nation’s economy. The government cannot stop creating them, as profits have dramatically reduced national debt.
In addition to the collection of Silver American Eagle Bullion Coins, there is a significant increase in sales of Numismatic Collectible Coins. Harry Newton, editor, Technology Investor Publication, writes this: “Interesting times! We see a lot of movement in collectors and investment currencies and coins especially higher graded coins. There has been a 35% increase so far this year in prices and about 200% in volume In the high quality values, evidence 65 and up and in Mint states MS 65 and above, there is a significant demand with record prices achieved, we understand that investors are more comfortable holding hard assets like coins than actual cash dollars or other currency balance, and there is a sustained daily movement out of the latter into hard assets. “
Not all American silver eagles are coins with plates and graded Mint State (MS). Only approx. 10% is MS-70. Unlike gold coins that are valued only on the basis of their silver weight, the value of a numismatic silver coin is determined by several factors: its rarity, the number of coins initially minted, the history and age, and the state of the coin.
Numismatic coins are bought and sold within the coin collecting society with little regard to today’s silver price. Numismatic coins are valued for their beauty, historical significance and their potential investment value. Therefore, numismatic coins sell at a significant premium over their inherent silver content.