Why I believe Silver is Better Investment Than Gold

[detroitjazzman]

WHY I BELIEVE SILVER IS A BETTER INVESTMENT

THAN GOLD

Today I received a PM concerning my thoughts about silver. While I am no investment specialist and any information that I post is my opinion and not intended to be investment advice. As my wife reminds me often, I’m a risk taker.

What I do believe is that gold while peeking very close to $1,400.00, is more readily available than silver. Moreover, With silver prices being at an all time high and looking like there is no end in sight, there are several scenarios and factors that could be pointed to as to finding out why.

There is, the industrial use of silver; major countries such as China and India are looking to use silver more and more for their products. There is the fear of the economy going to even more lows, so low that it will come to a point where silver and gold will could become everyday common monetary transactions.

The United States Mint have set records for minting of the American Eagle Silver Dollar. China, one of the biggest silver mining countries in the world, seen their imports quadruple over the course of the past year for More and more people are turning to scrap silver in order to keep up with that demand. Investment strategists say that it makes sense to stockpile silver. Silver pales in comparison to other big commodities such as oil and even the computer sector.

The thing is that the rollover numbers are a lot better with silver and silver exchange traded funds. Silver is up nearly 4,000 percent over the course of the last bullish precious metals movement of the past two years.

When investing in silver coins, buyers basically have three choices of 90% silver half-dollars: 1964-dated Kennedy half-dollars, Ben Franklin half-dollars, and Walking Liberty half-dollars. As a rule, circulated Kennedy half dollars and Franklin half dollars carry small premiums over dimes and quarters. However, Walking Liberty half dollars carry big premiums.

Premiums on bags of silver coins rise and fall depending on whether the public is investing in silver or is a silver seller on balance. Therefore, at times bags of silver coins carry higher premiums than 100-oz silver bars, but sometimes lower, and sometimes about the same

Read more: http://www.cmi-gold-silver.com/buy-silver-bullion-coins.html#ixzz1EdHCOT6a

Investors who can handle the added bulk and weight of bags of 90% silver coins should make them their first silver investing choice because 90% coins pick up premiums in markets where the public is investing in silver heavily. In past precious metals bull markets, bags have tacked on premiums of $1.20 to $1.50 per ounce. At times, premiums can rise to ridiculously high levels

Read more: http://www.cmi-gold-silver.com/buy-silver-bullion-coins.html#ixzz1EdGZpdaV

Is Silver a Better Investment than Gold?

Precious metals investors often ask, "Should I invest in silver or gold?" CMIGS says silver, for many reasons.

First, silver has always produced a greater percentage increase during precious metals bull markets. In some precious metals bull markets, silver has tripled in price while gold has doubled. In some moves, silver rose four times while gold doubled in price. Additionally, silver has more industrial applications than gold does, with more uses being developed.

Industrial uses provide an underpinning to the price of silver. So great is the industrial demand for silver that mine production and secondary recovery have fallen short of industrial demand since 1990. According to CPM Group, a New York metals consultancy, between 1990 and 2003 new production and secondary recovery fell 1,899.9 million ounces short of meeting industrial demand. Add in the silver used for coinage, and the 1990-2003 overall deficit swells to 2,214 million ounces.

Not only has production and secondary recovery failed to meet demand each year of the last fifteen years, but aboveground supplies are critically short. Some analysts say that supply will fall far short of meeting demand over the next decade, and that much higher silver prices will be the result. According to accepted statistics, more gold rests in the vaults of the world's central banks than there is aboveground silver.

The drop in reported silver holdings around the world shows just how much the production deficit has eaten into aboveground supplies. In 1995, Comex stocks stood at 260 million ounces; today Comex stocks are struggling to stay above 100 million ounces. In 1991, estimated silver inventories in London and Zurich were 350 million ounces; today that number is closer to 50 million ounces. In 1980, world governmental silver stockpiles totaled some 325 million ounces; today, few governments hold any silver.

Finally, many people think first of gold when the subject of "hard money" arises. Yet, more people have used silver for money than have used gold. In something like fourteen languages, the words for silver and money are the same. In the United States, gold coins ceased to circulate as money with Roosevelt's 1933 call-in. However, the U.S. Mint continued to turn out silver coins until 1965.

Money Morning's Peter Krauth expects silver prices to outpace the growth of gold in the coming year

http://www.nuwireinvestor.com/articles/is-silver-a-better-investment-than-gold-right-now-56546.aspx

For the reason indicated above, I will not buy gold unless it returns to a level that lends itself to a greater profit potential, not saying I believe the investment guru’s saying that silver will hit $250.00. But I do believe it meets my investment criteria. If I can buy it today…..and sell it tomorrow and not loose money…..”Im a player”

Read more: http://www.cmi-gold-silver.com/buy-silver-bullion-coins.html#ixzz1EdHoZOp6

[Lilalbertus]

WHY I BELIEVE SILVER IS A BETTER INVESTMENT

THAN GOLD

Silver's toxic to pathogens which means medical properties are limitless and it's the most conductive element.

[Helicopter Barry]

Silver's toxic to pathogens which means medical properties are limitless and it's the most conductive element.

Trust me, Silver at 33-34oz will be considered dirt cheap in a year. I hv over 1000 Ozs and zero interest in selling.

GO RV and Silver.!!!!!!!!!!!!!

[LettheRVbegin]

Trust me, Silver at 33-34oz will be considered dirt cheap in a year. I hv over 1000 Ozs and zero interest in selling.

GO RV and Silver.!!!!!!!!!!!!!

NICE! I just started investing in silver, and I have to say I'm very happy with the progress! I don't have much compared to you but getting there!

[Deathmonkey]

I just want to correct a couple things, but overall pretty good post.

Halves are not carrying premiums anymore UNLESS they are uncirculated, especially 1955 P Franklins. Dimes and quarters are receiving the same premiums now.

Bags for investing are NOT done by weight. The only time 90% coins are done by weight is when they are so damaged they could not be used for regular currency purposes. In that case they are sent off for refining and paid upon their pure troy ounces extracted. Actually, paying by weight is less than the premiums included for better coins, which is measured by face value. As I write this, silver is at $33.33, and 90% is going for approx. 22.4 - 26 times the face value. Most investments in 90% are done in full or 1/2 bags ($1000 face for full bag, $500 face for 1/2 bag).

I hope that can clarify some of the info on investing in 90%.

[detroitjazzman]

I just want to correct a couple things, but overall pretty good post.

Halves are not carrying premiums anymore UNLESS they are uncirculated, especially 1955 P Franklins. Dimes and quarters are receiving the same premiums now.

Bags for investing are NOT done by weight. The only time 90% coins are done by weight is when they are so damaged they could not be used for regular currency purposes. In that case they are sent off for refining and paid upon their pure troy ounces extracted. Actually, paying by weight is less than the premiums included for better coins, which is measured by face value. As I write this, silver is at $33.33, and 90% is going for approx. 22.4 - 26 times the face value. Most investments in 90% are done in full or 1/2 bags ($1000 face for full bag, $500 face for 1/2 bag).

I hope that can clarify some of the info on investing in 90%.

I think that one of the links i provided gives a very clear understanding investing in face value sliver coins.

[Deathmonkey]

I think that one of the links i provided gives a very clear understanding investing in face value sliver coins.

Yeah, I know, and you did an amazing job of copying and pasting, but that is not how 90% is invested. They are making it seems so much more official than it is, and with that, this company is ripping you off.

The following info is based on $33.33 spot.

By their calculations of using ounces, I calculated their price to be $28484.85 for a $1000 bag of Walking Liberties. (I physically weighed 2 coins to get $1 face value weight of .795 troy oz). That is based on their Spot + $2.50 per ounce.

The current sell price on 90% is 24.154 times the face value (I am subscribed to multiple coin and bullion databases and sites). That means a $1000 bag is $24154.00 currently.

So, by using the site you listed, you would pay $4000+ more dollars to buy 90% by weight. Even worse, scrap value per troy ounce on .900 silver is roughly $28.50 (assuming full melt and small percentage for refining).

All I am trying to say is that while their info sounds great, they are a bullion pumper site trying to get your business with catchy terms and pictures.

[Darin]

I spoke with a Merril Lynch employee once about the thoughts of investing in Gold. He thought it was a poor investment, because from his personal experience he had lost $ investing in it. He also didn't like the idea of Gold on the rise, because it meant Oil would increase.

I should of asked him about silver... "DOH!"

Next time I get a chance to talk to him, I will.

Oh, and his statement was that it seems everyone was buying gold. And he was biased because he had lost money.

[detroitjazzman]

Yeah, I know, and you did an amazing job of copying and pasting, but that is not how 90% is invested. They are making it seems so much more official than it is, and with that, this company is ripping you off.

The following info is based on $33.33 spot.

By their calculations of using ounces, I calculated their price to be $28484.85 for a $1000 bag of Walking Liberties. (I physically weighed 2 coins to get $1 face value weight of .795 troy oz). That is based on their Spot + $2.50 per ounce.

The current sell price on 90% is 24.154 times the face value (I am subscribed to multiple coin and bullion databases and sites). That means a $1000 bag is $24154.00 currently.

So, by using the site you listed, you would pay $4000+ more dollars to buy 90% by weight. Even worse, scrap value per troy ounce on .900 silver is roughly $28.50 (assuming full melt and small percentage for refining).

All I am trying to say is that while their info sounds great, they are a bullion pumper site trying to get your business with catchy terms and pictures.

Let's do this....I'll stop doing the research or as you say "cutting and Pasting" and you go and do th4 research and aI'll just read your post and not try to make a contribution to this forum. I already live a very nice life RV or no RV and have been invested in precious metals since $400.00 gold. My research dosen't benefit me, If I never make another dime, I will be just fine. So I guess, now, I don't have to do the reasearch. Looking forward to your post. just saying

[MCME]

I am going to pick up a little gold, but I am also going to get a lot of silver. I can see it going up also. LOL... HI HO SILVER, AWAY

[detroitjazzman]

Dear Deathmonkey

while I have seen nothing from you but criticism on this forum, it seems to me if you really had anything meaningful you would say it or try to add to the post. Instead what you do is troll the post and try to make yourself look good by inserting less than credible comments. If you were so learned, perhaps something constructive would come from those fingers. but then.....why would i expect anything else. Perhaps I should reserve my comments for the VIP forum where folks are a little more serious about this investment. or at least they understand its better to be thought foolish then to open ones mouth and remove all doubt. Sorry... I just don't play well with children.

Please refrain from direct attacks upon another poster! Discussions by nature have two sides. Please respect that.

Edited February 24, 2011 by Upgradable
caution

[Coonass]

I like silver,period. In 2007 it was around $13 now it's $33.58. It took a hit at the end of 2008 and has climbed ever since. Had I invested heavily in silver in '07 I would have earned a return of about 61% and change, in 5 years time.

[The Eagle]

FYI: When buying gold and silver in bulk (more than $10K) DO NOT buy Canadian, Austrian or any other foreign bullion. The sale of these automatically triggers a 1099 event. ONLY US MINTED bullion is exempt from the 1099 event. This does not remove the obligation of reporting gains made of US bullion - you are on your honor on this one......

[suntiger]

I did not see another place to post this! Why not invest in oil? Canada anyone!

T. Boone Pickens has $500 million invested!

He owns Canadian Oil Sands (CNQ) and Suncor (SU).

http://www.gurufocus.com/news.php?id=26613

Future burns bright for Canada's oilsands

http://www.vancouversun.com/business/Yedlin+Future+burns+bright+Canada+oilsands/4322886/story.html

[Deathmonkey]

Dear Deathmonkey

while I have seen nothing from you but criticism on this forum, it seems to me if you really had anything meaningful you would say it or try to add to the post. Instead what you do is troll the post and try to make yourself look good by inserting less than credible comments. If you were so learned, perhaps something constructive would come from those fingers. but then.....why would i expect anything else. Perhaps I should reserve my comments for the VIP forum where folks are a little more serious about this investment. or at least they understand its better to be thought foolish then to open ones mouth and remove all doubt. Sorry... I just don't play well with children.

Well it is sad you result to name calling and get so defensive over an internet post. I was trying to shed a little light on your post, which in most respects was wrong. You were posting info from one bullion selling company, who if anyone on this site followed your advice, they would of lost thousands of dollars. Maybe you are a rep from that company? I don't really know. All I know is that with my less than constructive fingers I am a Director of Operations of a multi-million dollar bullion and metal refining business who has been in business for over 40 years. However, as you say, I am a troll who is not serious. Although, I am sure none of my clients would say that, for they are all doing quite well.

[detroitjazzman]

Well it is sad you result to name calling and get so defensive over an internet post. I was trying to shed a little light on your post, which in most respects was wrong. You were posting info from one bullion selling company, who if anyone on this site followed your advice, they would of lost thousands of dollars. Maybe you are a rep from that company? I don't really know. All I know is that with my less than constructive fingers I am a Director of Operations of a multi-million dollar bullion and metal refining business who has been in business for over 40 years. However, as you say, I am a troll who is not serious. Although, I am sure none of my clients would say that, for they are all doing quite well.

you now for real ther were links to multiple sites and as far as someone taking my advice....I have done well taking my advice as as I indicated in the initial post..I AM A RISK TAKER.....and as such I don't have to work and for that reason I don't and in the last 20 years have never had less that 6 figure income and for the most part much more than that. Moreover I never asked anyone to follow my lead. If you are so sophisticagte in the prescious metals market. You can do the post because research takes time...cross checking informqtion. You.have the temerity to suggest I went to one site and cut and pasted a bunch of nonsense. And then try to support that prefeace by suggesting because you do a job for a period of time that you are an expert. If you are so good at prognasticating the rise and fall of precious meals I suggest you migfht want to rethink that process. As a side note...generally folk that have something to contribute just make the contribution, and, not poke at those the make an attempt to do something positive. as I indicated previously...Do your own research and join the ranks of the economist more learned than I am in the field who can't quite seem to agree. I will though, poost on one of thier web sites that you are available with all the answers..and the fact that you work in a metal refining factory is unappealing to me and the fact that you may be the director is less impressive. seems to me with all your knowledge you would be sipping mai tai's on your private island.

[Deathmonkey]

you now for real ther were links to multiple sites and as far as someone taking my advice....I have done well taking my advice as as I indicated in the initial post..I AM A RISK TAKER.....and as such I don't have to work and for that reason I don't and in the last 20 years have never had less that 6 figure income and for the most part much more than that. Moreover I never asked anyone to follow my lead. If you are so sophisticagte in the prescious metals market. You can do the post because research takes time...cross checking informqtion. You.have the temerity to suggest I went to one site and cut and pasted a bunch of nonsense. And then try to support that prefeace by suggesting because you do a job for a period of time that you are an expert. If you are so good at prognasticating the rise and fall of precious meals I suggest you migfht want to rethink that process. As a side note...generally folk that have something to contribute just make the contribution, and, not poke at those the make an attempt to do something positive. as I indicated previously...Do your own research and join the ranks of the economist more learned than I am in the field who can't quite seem to agree. I will though, poost on one of thier web sites that you are available with all the answers..and the fact that you work in a metal refining factory is unappealing to me and the fact that you may be the director is less impressive. seems to me with all your knowledge you would be sipping mai tai's on your private island.

I made a contribution, I was letting people know if they went to the site you linked, they would pay thousands of dollars too much. I think that is a big help to those investing. Sorry you do not see it that way.

[VIZIOIRAQI]

Silver is a great investment lol , but 1400.00 never . I hope you studied alot on this subject and took into count the way gold and silver trade. Silver is used in medical and china is finally able to invest lifting bands from the public. Tune in for further details