Apmex Silver

Photo Block Spray to Stop Tickets in the Mail

Friday, January 8, 2010

Why Silver is Wealth

Silver (and gold) have been an asset and a stable store of wealth for many millennia. because they cannot be instantly manufactured on a printing press like paper dollars. Name some items of true wealth you possess. Cash in the bank? What happens if your bank goes bankrupt, locks the doors and seizes all of your savings? What happens if all depositors want to withdraw their savings at the same time, like during the Great Depression, when about 1200 banks were forced to close? You get nothing. If you had silver (or gold) in your possession, it was tangible wealth and not empty paper promises.
And what happens if you miss a few mortgage payments? Your property may be confiscated. How quickly can you pawn your jewelry or you sell your car? Unless you are driving a Ferrari, it is a rapidly depreciating item. And even a Ferrari becomes a poor store of wealth when you must pay $25,000 for an engine rebuild.
So why is tangible wealth so important? Various entities worldwide are printing away your wealth through inflation. Any increases in the money supply helps to fool the masses into believing they are living in a time of economic stability, to pay for hurricane damage rebuilding, and invasions and occupations.
The last official M3 reports showed that 18% more dollars were being printed yearly by the Federal Reserve (which is neither 'Federal' nor has any 'reserves'). And why have they stopped publishing M3 data?
So, if you had a 1 oz. silver bar, one year from now would that bar contain 18% less silver? Wouldn't you rather fight monetary inflation and have tangible silver that cannot be devalued?

Colloidal Silver- known to kill over 660 viruses.

Rocky Mtn. Coin
Why Physical Silver?
The advantage of possessing physical silver (and gold, palladium, platinum) are many. In a few words, it is private, portable, liquid, secure, and if you buy collectibles, beautiful and historical.
So how did I discover these benefits? After the 'dot com' bubble burst, tech stocks were nearly worthless and I was afraid of the real estate bubble deflating. So when my friend told me about buying physical silver for what it cost to mine from the ground, I recalled the days of gold prices increasing from $35 per oz. in 1971 -- to $820 per oz. in 1980. He then told me that silver had been in a 20 year bear market and that it would probably exceed the inflationary adjusted 1980 prices in the next few years. When I heard, "Diminished supply and increased demand never fail to increase the value of something," and "Warren Buffet of Birkshire Hathaway bought a large amount of silver in 1997," I had to learn more.
History tells us that since the Roman Empire every currency has been inflated into non-existence, or a valuation of zero. All current world currencies will suffer the same fate eventually, so what to do with rapidly depreciating dollars? They say the smart money is going into gold, and the REALLY smart money is going into silver.
Anyway, after learning the benefits of physical precious metals, I chose to seek information about companies which mined it. If I could not own a lot of physical silver, I figured I could 'own' it in the ground.

Goldmoneybill- State Sound Money currency bill.
Why Silver Mining Companies?
A few years ago my friend, Jason Hommel, informed me that his plan was to invest in physical silver and silver stocks. According to him, the next best thing to owning physical silver was owning stock in mining companies. Shortly thereafter he launched a FREE newsletter, specializing in reporting on the undervalued stocks of mining companies with large silver reserves in the ground. His research shows that above ground silver reserves are likely nearly depleted, because silver is coming to market only as a by-product of the mining of gold, zinc, molybdenum, etc. Few mining companies have directly mined silver for the last 20 years because they can only sell it for slightly more than it costs to extract from the ground.
Anyway, his free newsletter has grown to over 85,000 subscribers and his website is called the SILVER STOCK REPORT. Read his free Ebook, or purchase a monthly look at his portfolio. CLICK HERE for Jason Hommel's FREE Silver Stock Report.

Silver Articles
Below are some articles by authors more knowledgeable than I am about various topics.
-- Did you know that every fiat currency in the history of the world has become worthless?
-- Did you know that the Federal Reserve is NOT a part of the U.S. Government? Since the creation of 'The Fed' in 1913 they have printed enormous amounts of currency. How do you think the U.S. is paying for Iraq and to rebuild hurricane damaged areas?
-- Did you know your investments need to earn about 7-18% per year just to break even, due to inflation of the U.S. dollar?
-- Workers are now paid with a bunch of numbers on a check or electronically with direct deposits. Did you know that a worker was once paid a silver coin for a day's wage?
-- Did you know that the proliferation of digital photography may have little effect on silver demand?
Visit the SILVER ARTICLES page. Enjoy writings by various authors who delve much deeper into the specifics of silver as wealth and manipulation by monetary inflation of paper currency.

For Physical Ownership of Silver there is Monex- The low cost precious metal retailer. Paul Bea 800-949-4653 x2172 Use Kevin from Goldmoneybill.org as a referral

No comments: