You hear this frequently, “Why should we buy Silver? It is just an industrial metal!” They are correct that it is an industrial metal, but there’s a little matter of the Constitution which states that no state “…can make anything but gold and silver coin a tender in payment of debts.”
Article 1 – The Legislative Branch
Section 10 – Powers Prohibited of States
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
Also, silver (and gold are money: “On April 2, 1792, U. S. Secretary of the Treasury Alexander Hamilton reported to Congress the precise amount of silver found in Spanish milled dollar coins in common use in the States.
As a result, the United States Dollar was defined as a unit of weight equaling 371 4/16th grains (24.057 grams) of pure silver, or 416 grains of standard silver (standard silver being defined as 1,485 parts fine silver to 179 parts alloy. It was specified that the “money of account” of the United States should be expressed in those same “dollars” or parts thereof. ”
Then some believe that silver is not rare. “It is found everywhere!” Wrong!
Mike Maloney wrote in October, 2010, “Silver is extremely rare. For the first time in human history, there is more gold for investors to buy than silver.” There’s 8.3 times more gold available to buy today than silver. If you go to a coin store with the intent of buying gold and silver coins, many like you will put half their money in gold and half in silver.
An American Gold Eagle at APMEX for example would cost $1,306.29. You say you are going to invest approximately 50% in gold and silver. For $5225.16 you could buy four (4) ounces of Gold and Silver would cost $19.84. You can buy 240 ounces of silver. That’s 60 times the number of gold ounces for $5000.
All over the U.S. and the world investors are doing just that, splitting their money between the two precious metals. The demand for silver is growing.
In the early 80’s, the U.S. government’s strategic stockpile of silver was locked in by law at 139.5 Moz. Congress has since authorized legislation to dispose of these stockpiles. In late 2000 the U.S. Defense National Stockpile Center delivered its remaining stockpile of nearly 15 Moz to the U.S. Mint for coinage programs. Since 2001, the U.S. has had to purchase silver for its coinage programs from the open market.
Yes, silver is an industrial metal and its uses are growing. Here are some of the uses for silver:
- Silver in Electronics
- Silver in Energy
- Silver in Brazing and Soldering
- Silver in Chemical Production
- Silver in Coins and Investments
- Silver in Medicine
- Silver in Mirrors and Glass
- Silver in Engines
- Silver in Awards
- Silver for Water, Food, Hygiene
- Silver in Solar power, and Nanotechnology
The commercial asked, “Got milk?” As investors we need to ask, “Got enough silver?”