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<p>[QUOTE="BusterHighman, post: 1155570, member: 29945"]You may be getting a nicer room with the dollar price of precious metals nearing all time highs, but we've already hit the iceberg and the water's rushing in. Make no mistake. </p><p><br /></p><p>There are many complex reasons why physical silver is the best investment available today, but the simple explanation comes down to one thing. SUPPLY AND DEMAND. </p><p><br /></p><p>1. The supply and demand of dollars. The Federal Reserve Corporation is increasing the supply by trillions of dollars every year. Increased supply = decreased price. The demand for dollars is falling, especially in the foreign arena where other major economies are dumping them. Decreased demand = decreased price. </p><p><br /></p><p>2. The supply and demand of Silver. Demand for physical silver is through the roof for both investors and industry. Central Banks around the world are buying PMs as fast as they can. Especially cash rich countries like China and Saudia Arabia who are desperately trying to diversify out of the Dollars they've been getting from us for the last 50 years. Increased demand = increased price. </p><p><br /></p><p>Silver is a better alternative to gold because it is consumed by industry and is being used more and more. Computers, electronics, solar panels, cell phones, missiles all consume silver that is not replaced. No one knows how much silver is really available in the world. We have the historical silver to gold ratio of 16:1 or so, but some people believe the real ratio is closer to 1:1. If that is true, then silver should be around the same price as gold. Regarless of how much there is, increased consumption = decreased supply = increased price. </p><p><br /></p><p>Much like oil, the earth only has so much precious metal inside of her. The easy stuff has already been pulled from the ground and it's getting harder and more expensive to maintain the same level of production. Higher oil prices drive the costs of mining up even more. Decreased supply = increased price. </p><p><br /></p><p>It is especially foolish to sell your PMs if you have dollar income, savings, and/or bonds. All of those paper investments are heavily correlated. PMs allow you to truly diversify your investments. They also provide a hedge against the rising cost of food and gas. If it's true that the dollar is dying, then PMs will rise right along side of the day to day things you need to live. If the Federal Reserve Corp is able to make another hail mary save like they did in 2008, then the price of food and gas will fall along with PMs.[/QUOTE]</p><p><br /></p>
[QUOTE="BusterHighman, post: 1155570, member: 29945"]You may be getting a nicer room with the dollar price of precious metals nearing all time highs, but we've already hit the iceberg and the water's rushing in. Make no mistake. There are many complex reasons why physical silver is the best investment available today, but the simple explanation comes down to one thing. SUPPLY AND DEMAND. 1. The supply and demand of dollars. The Federal Reserve Corporation is increasing the supply by trillions of dollars every year. Increased supply = decreased price. The demand for dollars is falling, especially in the foreign arena where other major economies are dumping them. Decreased demand = decreased price. 2. The supply and demand of Silver. Demand for physical silver is through the roof for both investors and industry. Central Banks around the world are buying PMs as fast as they can. Especially cash rich countries like China and Saudia Arabia who are desperately trying to diversify out of the Dollars they've been getting from us for the last 50 years. Increased demand = increased price. Silver is a better alternative to gold because it is consumed by industry and is being used more and more. Computers, electronics, solar panels, cell phones, missiles all consume silver that is not replaced. No one knows how much silver is really available in the world. We have the historical silver to gold ratio of 16:1 or so, but some people believe the real ratio is closer to 1:1. If that is true, then silver should be around the same price as gold. Regarless of how much there is, increased consumption = decreased supply = increased price. Much like oil, the earth only has so much precious metal inside of her. The easy stuff has already been pulled from the ground and it's getting harder and more expensive to maintain the same level of production. Higher oil prices drive the costs of mining up even more. Decreased supply = increased price. It is especially foolish to sell your PMs if you have dollar income, savings, and/or bonds. All of those paper investments are heavily correlated. PMs allow you to truly diversify your investments. They also provide a hedge against the rising cost of food and gas. If it's true that the dollar is dying, then PMs will rise right along side of the day to day things you need to live. If the Federal Reserve Corp is able to make another hail mary save like they did in 2008, then the price of food and gas will fall along with PMs.[/QUOTE]
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Selling Your Silver for Dollars = Buying your Ticket on the Titanic
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