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<p>[QUOTE=&quot;19Lyds, post: 2214594, member: 15929&quot;]Using silver as a hedge against inflation is a poor man&#039;s dream which can quickly turn into a nightmare since &quot;silver&quot;, is nothing more than a commodity anymore.</p><p><br /></p><p>Back in 1964 when the US Government and the rest of the world for that matter, came of silver as the standard for money, it was because silver was becoming more valuable in the market place for things such as integrated circuits and photographic film. BOTH of those industries were gobbling up silver faster than it could be produced and the net result was a rise in silver prices.</p><p><br /></p><p>Today, silver is rarely used for integrated circuits and the film industry is all but dead thanks to digital photography. Pretty much the ONLY industry which uses silver in large quantities anymore are governmental agencies which produce coins and the many bullion dealerships which sell those coins and produce their own collectible bars and rounds.</p><p><br /></p><p>MILLIONS of ounces are pulled from the earth on an annual basis and a glut is totally possible. If a glut does occur, the price of silver will simply plummet.</p><p>It does not take a rocket scientist to see that the US Mint sells more than 40,000,000 ounces of silver a year and they&#039;ve been doing this since 2009. That&#039;s a quarter of a billion ounces all pulled just from US Soil. It does not address the millions of ounces produced by the other industrialized nations in the world.</p><p><br /></p><p>My bet, is that silver will continue to drop with little teasing up-spikes to keep the investor interest up but all in all, silver is going to go down fairly far before it ever see&#039;s a serious upswing in value. There is just too much of and not enough actual &quot;need&quot; for it.</p><p><br /></p><p>As for gold, similar but not quite as high a production value. Gold plated jewelry will always have a niche market but the vast amount of gold today is relegated solely to collectible bullion pieces and ingots. It has lost its capability for use as money or an investment tool. After all, you can only do up 1, down 2, for so long before something becomes worthless and the big money investors will be long gone by then.[/QUOTE]</p><p><br /></p>

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