Whether it’s pirated software, poison-infused baby formula, cancer-causing drywall, luxury purses, or fake medicines, if you need a knock-off, China has traditionally been the go-to country, with a counterfeiter always willing to oblige. Now, with precious metals prices on the cusp of possibly the biggest price explosion in centuries, fake gold and silver products are becoming a booming industry. Here are some safeguards to protect yourself from getting duped. Words: 1124

If sales for November and December match the levels of 2010, total sales of American Silver Eagle coins for 2011 should… [be] more than 20% above the record breaking sales level of 2010. [Not only that but] with physical demand remaining robust and investors seeking safe-haven investments in the face of the Eurozone debt crisis, I believe we could still see silver break above $50 by year-end or during Q1 of 2012 at the very latest. [Let me explain.] Words: 402

Oftentimes perception, and not reality, rules the day with the thousands or millions of speculators placing short term bets with assets like silver. These perceptions are particularly strong given that paper players in the silver market often control the price in the short term (6-8 months), since there is so much more paper silver than physical metal out there…Here are five common myths about silver that I bet many speculators still believe are true. Words: 1638

So says Ryan Jordan (http://goldsilver.com) in edited excerpts from an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

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Jordan goes on to identify, and explain, the 5 common myths associated with investing in silver, as follows:

As far as I’m concerned, there is no fundamental reason for silver to be so cheap. Instead silver fundamentals are badly overshadowed by misconceptions (or outright lies) about silver. Here are five common myths about silver that I bet many speculators still believe are true:

1. Silver is an “economically sensitive” metal

During the recession of 2008-2009, the CPM Group estimated that silver demand from photography, jewelry, and industry dropped by roughly 80 million ounces (CPM Silver Yearbook, p.69). Mine supply also increased by about 30 million ounces, along with a 15 million or so increase in recycling. Therefore, in order for the price of silver to remain stable (theoretically), you would need investors to make up this roughly 100 million ounce difference, which is exactly what they did. Given the fact that people understood the need to buy precious metals during a banking crisis, investment demand for silver increased by nearly 100 million ounces at the same time as demand fell and other sources of silver also increased. (p.11)

Over the course of 2008 and 2009, the silver price more or less remained stable, even as it saw wild swings induced by paper trading. As such, during one of the worst recessions in modern memory, real, physical demand for silver cancelled out declining industrial use. [That is] an important point to remember when someone tells you the silver price is destined to go down in the next recession.

2. Silver coins and bullion are more plentiful than gold

In fact, it is the exact opposite [- silver coins and bullion are less plentiful than gold]. Being generous (and using data from the CPM Group as well as the Silver Institute) there are maybe 1.4 billion ounces of silver coin and bullion in the world, versus roughly 3 billion ounces of gold coins and bullion. Yes, it is true that recently about 80 million more ounces of silver bullion/coins are produced each year than gold ones, but that still means that it will take over 15 years before the silver stockpile in the world even equals that of gold, let alone becomes greater. So why is the price of silver something like 50 times cheaper than gold? Ask the paper speculators above.

3. The high price of silver will drive down demand from industry

This one has had no basis in fact for the period from 2000 to 2010. During that decade, industrial demand, according to most estimates, basically remained flat (GFMS World Silver Survey, 2010). This is amazing when you consider that the price of silver went from 4 dollars to over 20 in that period. Because silver is used in such small amounts in things like electronics and solar panels, increasing silver costs have yet to dampen demand for highly desired toys like computers and cell phones, and many silver experts believe that such demand will only increase in the years ahead. You should realize that a rising silver price does not seem to dampen industrial demand.

4. At the right price, billions of ounces of silver will get recycled

Many believe that there are nearly 6 times as many ounces of silver jewelry (and silverware) than gold jewelry in the world. So you might think that there is a lot of silver that will get melted down someday. [Two problems] with this argument is that much of this silver either a) costs way more than even the current bullion spot price and b) is held in very small amounts all over the world by over 1 billion people (oftentimes women). They won’t care to sell for a very long time—if ever.

There is an even more important point here. I bet most people who claim to follow precious metals don’t realize that as of 2010, we had yet to see more silver recycled than during 1980. That is thirty years of silver recycling more or less going nowhere, even as the price of silver spent more time above 20 dollars an ounce in 2010 than in 1980. I am going to be generous and guess that we will finally best the old recycling high this year in silver (at over 300 million ounces) but in a world where 300 million ounces of silver is only 10 billion dollars, and in a world where investors are slated to purchase nearly that much silver in physical form over the next couple of years, you really have to wonder why anyone would think there is all of this silver just lying around ready to be brought to the market to cool off silver’s price. Given what I said about how impervious industrial demand is to silver price increases, a lot of whatever silver jewelry gets recycled will be used and consumed by industry (even assuming that preservation techniques get better as the price goes higher.)

I also would not expect mine increases to somehow meet demand: few industry experts believe silver can increase more than 4 or 5 percent a year (roughly 50 million ounces, or less than 2 billion dollars), especially when nearly 80% of silver is a byproduct of metals like copper, lead, and zinc.

5. Retail silver investors are fickle/ there is no plan to remonetize silver

This myth had some basis in truth, at least according to the experts who tracked silver buying and selling activity in the 1980s and 1990s (such as the CPM Group or Silver Institute). Many agree that retail investors (probably following the lead of governments) sold far more silver than gold during the twenty years between 1985 and 2005 – probably to the tune of over 1 billion ounces – so many felt that silver investors were flakes who really didn’t have the staying power of gold investors. As I mentioned above, it may have just been the case that average investors followed the lead of governments, since those governments dumped far more silver than gold during the same period (gold is the only precious metal held by central banks, in addition).

I am struck by how many proposals there are like the one from Hugo Salinas Price in Mexico, attempting to bring back silver coins into the market in his country, – [and] all of the state legislation in the United States aiming to bring back both gold and silver into economic transactions. Remember, silver is perceived to be the money of average people (even as it is rarer than gold) so any grassroots effort to bring back precious metals into everyday transactions will dramatically increase silver’s value. We have already seen the amazing turnaround in silver retail investment buying over the past few years (hundreds of millions of new ounces) and I think some people are slowly waking up to how undervalued silver is. But believe it or not, many, many more have yet to do so.

Don’t Be Fooled By Silver Market Myths

As I said above, I understand that fundamentals often have no place in markets. This is why so many traders focus on chart patterns, or volume indicators, or anything other than the underlying, real-world reasons for an asset to move up or down in price. You can also see the lack of interest in fundamentals from those large speculators who believe that rumor-mongering is a safer way to make money than actually focusing on legitimate distortions in the market. You might be surprised how much money you can make from simply playing games, or from manipulating others’ emotions—at least in the short term.

In the end, of course, I don’t think gambling or trading wins out. Yes, there are those few great traders out there, just like there are a few great gamblers around but there are far more people who are simply the sucker drawn into the great casino called “the market.” This is a sad commentary on how our current financial system incentivizes reckless, speculative behavior but that is just the way our world works — at least for now.

Every day we see more evidence of the need for retail investors to truly diversify their portfolios with an asset that is set apart from the stock/bond market or banking system. The world is not going to end, but gradually, perception will come around to the cold, hard facts that currency debasement, financial repression (artificially low interest rates), combined with fiscal austerity are here to stay. In an environment where measures such as quantitative easing are really only easing the transition to a downsized economy (at best), people will be looking for assets which don’t need leverage to move higher…[and] don’t rely on endless consumption or indebtedness on the part of the consumer in order to become more valuable…

In the long term, the current price correction really will be a blip on a screen. [Don't make the mistake of buying into the abovementioned] 5 myths regarding silver [because it is just a matter of time before] silver’s price one day explodes higher again.

*http://goldsilver.com/new/the-five-myths-of-silver-investing/

Related Articles:

1. There are Competitive Advantages to Owning Silver vs. Gold – Here are 10

Once you see that precious metals are the place to be, then you need to choose between the big 4 precious metals; gold, silver, platinum and palladium. Platinum and palladium have rarity and industrial use going for them but they have never been used as money in history. With a currency collapse, I want something that will have the most demand to drive up the price the most. I want my metal to have industrial, investment and monetary demand. This leaves us with gold and silver as the only two rational choices for investment in the face of a mathematically inevitable world-wide currency collapse. So let us go through the competitive advantages of silver over gold. Words: 2206

2. Gold Bullion: What’s the Difference Between 1 Troy Ounce and 1 Regular Ounce?

You have no doubt read countless articles on the price of gold costing x dollars per “troy ounce” or perhaps just x dollars per “ounce” but the difference between the two measurements is significant. For that matter, what’s the difference between a 24 karat gold ring and an 18 karat gold ring? What’s the difference between a .75 and a 1.0 carat diamond? Let me explain. Words: 963

3. History Says Silver Could Become the Next 10-Bagger Investment! Here’s Why

If you concur with the 159 analysts (see below) that maintain that physical gold is going to go parabolic in price in the next few years to $3,000, $5,000 or even $10,000 or more then you should seriously consider buying physical silver. Why? Because the historical gold:silver ratio is so way out of wack that silver should appreciate much more than gold as it goes parabolic in the years to come. Indeed, silver could easily reach $100 – $200 per troy ounce, maybe even $300 and conceivably in excess of $400 depending on how high gold goes. The aforementioned may be hard to believe but an analysis below of the historical price relationship between silver and gold suggests that such will most likely occur if gold does, indeed, go parabolic. Take a look. Words: 1423

4. Why You Should Invest in Silver and What Your Options Are

5. Don’t Delay: Get Your Fair Share of Silver Today! Here’s Why

Silver’s rise in price is no fluke – it’s the result of a compelling supply/demand dynamic within a unique market structure. We hope the following comments convey our enthusiasm for “the other shiny metal” as an exceptional investment opportunity. Words: 2226

6. Sprott: Shocking Shenanigans in Paper vs. Physical Silver Market 

With so much talk these days about the risks of investing in silver, we think that perhaps it may be timely for us to weigh in on the matter. The silver market is riskier than ever – but for reasons the vast majority of pedestrian commentators have failed to grasp. [Let us explain.] Words: 1517

7. Think You Know All About Silver? Take This Quiz and Find Out

CPM Group’s recently released its 2011 Silver Yearbook…[which] presents some interesting facts that paint a decidedly bullish picture for the metal going forward. If you’re a silver investor, and/or are concerned about the recent selloff, you may find the following data very compelling. It provides an inside track on the market and will certainly make you a more knowledgeable investors.[Read on!] Words: 1280

8. Silver is Now Even More Precious Than Gold! Do You Own Any?

Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. [Can you imagine what that means for the future price of this, indeed, precious metal? Forget about the popular expression: 'Got gold?' The much more important - and potentially more profitable - question to ask these days is, 'Got silver?'] Words: 972

9. It Is Time To Embrace the New Refrain “Got Silver?”    /

Few investment opportunities arise in our lifetime like silver. The stage is set for a percentage gain of extraordinary magnitude! Forget the popular refrain of “Got Gold?” and make some additions to your portfolio to take advantage of the coming silver supernova! Words: 513

10. Silver Is About As Close As You Can Get To A Sure Bet! Here’s Why

I am very, very bullish on silver; the metal which is overlooked by most but will make the few who own it extremely rich. While gold will have a spectacular performance over the course of this bull market, it is silver that will be the MVP. Silver is about as close as you can get to a sure bet. Here are 7 reasons why silver will make you rich. Words: 2074

11. Panic Before the Herd and Win-Win with Silver!

A win-win situation, as we all know, occurs when opposing parties both gain from a certain outcome.  Perhaps both don’t always get all that they want but both ‘win’ something in the bargain.  It’s the best outcome that can be expected for both parties. With silver there is a lose-lose and a win-win scenario. Let me explain. Words: 917

12. Why You Should Own Some Silver – As Well As Gold

Silver is extremely volatile, however, and tends to rise or fall in spurts so I’d like to focus  on its attributes as compared to gold, make a case for holding some, and discuss some ultimate price possibilities. Words: 1606

13. Why You Should Buy Silver – Instead of Gold!

Understanding silver is not difficult but ACTING upon your understanding and purchasing the physical metal is PSYCHOLOGICALLY a VERY difficult thing to do. You will always second guess the timing, always be told you are crazy for paying REAL MONEY for a piece of metal and ALWAYS be having to justify your ACTIONS to those who have taken NO ACTION. [Let me explain things further and lay out some sound reason why you should sell whatever gold you currently own and buy silver instead.] Words: 2273

14. Why Silver Provides Much Greater Upside Potential than Gold /

The opportunities expected to arise from investing in silver now are even more pronounced than those of gold. [Let me explain why that is the case.] Words: 1367

“America the Beautiful” and “Canadian Wildlife” Silver Bullion Coin Series

The United States Mint has taken the demand for more mass production silver bullion coins seriously of late expanding their offering to a planned total of 57 new coins by 2021 with the introduction of their America the Beautiful Bullion Coin Series . Canada’s Royal Canadian Mint has followed suit expanding its offering of mass production silver bullion coins to 8 by 2013 with the launch of their Canadian Wildlife Silver Bullion Coin Series Program. Below are the details. Words: 958

So says Lorimer Wilson (www.FinancialArticleSummariesToday.com) and editor of  www.munKNEE.com  (It’s all about Money!). Please note that this paragraph must be included in any article reposting with a link to the article* source below to avoid copyright infringement. Wilson goes on to say:

United States of America

1 ozt. American $1 Eagle Silver Bullion Coin

The American Eagle Silver coin is the official silver bullion coin of the United States as authorized by Congress through the Liberty Coin Act which became public law on July 9, 1985. The United States Mint first released the coin on November 24, 1986.  From 1986-1992 proof Eagles where minted at the San Francisco Mint and have the S mint mark, from 1993 through 2000 proof Eagles where minted at the Philadelphia Mint and have the P mint mark, Since 2001 proof Eagle have been minted at the West Point Mint and display the W mint mark.

5 ozt. America the Beautiful Bullion Quarter Dollar Coin Series

The America’s Beautiful National Parks Quarter Dollar Coin Act of 2008 — Public Law 110-456 — authorizes the production of 5 five-ounce, investment grade silver bullion coins every year through 2021  (56 in total) replicating  each of the designs featured on the US Mint’s America the Beautiful Quarters (see designs below). These designs, as such, will feature reverse designs depicting national parks and other national sites in each state plus other national sites and territories in the District of Columbia and the five U.S. territories of Puerto Rico, Guam, American Samoa, U.S. Virgin Islands and Northern Mariana Islands and the edge of the coin will be incused with lettering stating the bullion coins’ Fineness “.999 FINE SILVER” and Weight “5.0 OUNCE.”

The first 10 of the 56 designs are as follows:

Schedule of Issuance

The America the Beautiful Silver bullion coins will be issued in the order in which the honored site was first established as a national site as follows:

2012

1. PR El Yunque National Forest Site
2. NM Chaco Culture National Historical Park
3. ME Acadia National Park
4. HI Hawai’i Volcanoes National Park
5. AK Denali National Park

2013

1. NH White Mountain National Forest
2. OH Perry’s Victory and International Peace Memorial Site
3. NV Great Basin National Park
4. MD Fort McHenry National Monument and Historic Shrine
5. SD Mount Rushmore National Memorial

2014

1. TN Great Smoky Mountains National Park
2. VA Shenandoah National Park
3. UT Arches National Park
4. CO Great Sand Dunes National Park
5. FL Everglades National Park

2015

1. NE Homestead National Monument of America
2. LA Kisatchie National Forest Site
3. NC Blue Ridge Parkway Site
4. DE Bombay Hook National Wildlife Refuge Site
5. NY Saratoga National Historical Park

2016

1. IL Shawnee National Forest
2. KY Cumberland Gap National Historical Park
3. WV Harpers Ferry National Historical Park
4. ND Theodore Roosevelt National Park
5. SC Fort Moultrie (Fort Sumter National Monument)

2017

1. IA Effigy Mounds National Monument
2. DC Frederick Douglass National Historic Site
3. MO Ozark National Scenic Riverways
4. NJ Ellis Island National Monument (Statue of Liberty)
5. IN George Rogers Clark National Historical Park

2018

1. MI Pictured Rocks National Lakeshore
2. WI Apostle Islands National Lakeshore
3. MN Voyageurs National Park
4. GA Cumberland Island National Seashore
5. RI Block Island National Wildlife Refuge

2019

1. MA Lowell National Historical Park
2. MP American Memorial Park
3. GU War in the Pacific National Historical Park
4. TX San Antonio Missions National Historical Park
5. ID Frank Church River of No Return Wilderness

2020

1. AS National Park of American Samoa
2. CT Weir Farm National Historic Site
3. VI Salt River Bay National Historical Park and Ecological Preserve
4. VT Marsh-Billings-Rockefeller National Historical Park
5. KS Tallgrass Prairie National Preserve

2021

1. AL Tuskegee Airmen National Historic Site

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Canada

1 ozt. Silver Maple Leaf Bullion $5 Coin

The Canadian Silver Maple Leaf bullion coin has been minted by the Royal Canadian Mint annually since 1988. The coin has the highest face value $5 and purity .9999 of all official government silver bullion coins. There are three different versions of Queen Elizabeth on the observe of the Silver Maple Leaf. The design on the left, below, was from 1988-1989, the design in the middle was from 1990-2 and the 2004-present design is to the right.

1/2 oz. Silver Timber Wolf Bullion $1 Coin

In 2006 the mint issued a half ounce Silver Timber Wolf  which was an outstanding success.

Canadian Wildlife Bullion Coin Series Program

Given the outstanding popularity of the Silver Timber Wolf coin the Royal Canadian Mint has introduced a 6-coin series known as the Canadian Wildlife Silver Bullion Coin Series Program in which a  new coin will be released every 6 months.

1 ozt. Silver Timber Wolf Bullion $5 Coin

The first coin released in the series (September 2010) was the 2011 Canadian Silver Timber Wolf  Bullion coin created with the same .9999 fine silver as the Canadian Silver Maple Leaf bullion coin and the same  image as that used on the half ounce Silver Timber Wolf coin.

1 ozt. Silver Grizzly Bullion $5 Coin

The 2011 Canadian Silver Grizzly Bullion coin was the second coin released (January 2011) in the Canadian Wildlife Silver Bullion Coin Series.

Source: For access to the source of the above graphics and other free gold and silver coin information visit  http://www.free-bullion-investment-guide.com/

*http://www.munknee.com/2011/07/new-series-of-canadian-american-silver-bullion-coins-coming-to-market/

Related Articles:

1. What’s the Best Buy in Silver These Days?  http://www.munknee.com/2011/06/whats-the-best-buy-in-silver-these-days/
2. What’s the Difference Between 1 Gold Karat, 1 Diamond Carat and 1 Troy Ounce?  http://www.munknee.com/2011/03/whats-the-difference-between-1-gold-karat-1-diamond-carat-and-1-troy-ounce/

Editor’s Note:

• The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
• Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.

Gold, As An Asset Class, Should Be In Your Portfolio – Permanently!

It is no longer a matter of whether or not you should buy gold and/or silver but, rather, which type of investment(s) and how much. You don’t need a lot but you do need some – and here is a primer on just what type of investment vehicles are available and recommendations on just how much you should buy.  Words: 1086

So says Lorimer Wilson (www.FinancialArticleSummariesToday.com) and editor of www.munKNEE.com. Please note that this paragraph must be included in any article reposting with a link* to the article source to avoid copyright infringement. Wilson goes on to say:

Gold is the best hedge against uncertainty there is and it is also a useful thing to have in your portfolio if inflation is rising, as some foresee, or if the U.S. dollar were to decline further, as expected. Don’t take my word for it but instead read this [1] article identifying 90 gold analysts who think the environment is such that the price of gold will go parabolic to $5,000 or more!

How Much Gold Do You Need?

The U.S. firm Ibbotson Associates, in a study for Canada’s Bullion Management Group, found investors can potentially improve their balance of risk and reward with a precious metals weighting of 7.1 per cent in conservative accounts, 12.5 per cent in moderate accounts and 15.7 per cent in aggressive accounts. Precious metals can include silver and platinum, but it’s a term that primarily means gold.

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Another U.S. firm, Wainwright & Co. Economics Inc., looked at the need for gold in one’s portfolio from an inflation protection point of view and concluded from their research (see here [2]) that “a U.S. equities portfolio in which 15% of the assets are diverted to gold bullion would be effectively immune from damage due to a rising gold price and that is, we believe, equivalent to immunity from inflation.”

Which Vehicle Should You Choose?

a) Physical Gold and Silver

Gold in bars or coins makes sense if you are concerned about the complete breakdown of society but you will have an asset that needs to be securely stored. Read this [3] article with suggestions on how to go about buying and storing physical gold and this [4] article on why silver looks to have even greater upside potential than gold.

b) Individual Gold and Silver Stocks and/or Their Long-term Warrants

Gold and silver stocks have an added degree of risk because you not only need gold prices to rise (and gold stocks and gold bullion don’t always move in unison) but you also need your precious metals company to be a well-run business. For greater leverage on your invested dollars consideration should be given to an investment in commodity-related long-term warrants. This [5] article spells out the details on currently available warrants that warrant your consideration.

c) Precious Metals Mining Mutual Funds

PM funds hold the stocks and/or warrants of gold, silver and platinum companies involved in the producing, developing, exploring or buying (via royalty payment arrangements) of such metals. While they are among the most expensive in terms of the fees they charge they have a long history of bringing the benefit of rising gold prices to individual investors (and the opposite, of course).  Go here [6] for specific stock and mutual fund recommendations.

d) Exchange-traded Funds
There are two kinds of gold ETFs:

1. One tracks the price of gold bullion and is thus a clean, convenient proxy for holding physical gold (e.g. the iShares Comex Gold Trust, which trades on the TSX under symbol IGT (IGT-T) and the New York Stock Exchange under IAU (IAU-N) and the NYSE-listed StreetTracks Gold Shares ETF (GLD-N). Go here [7] for a primer on the types of ETFs offered for sale in Canada and the U.S.
2. The other tracks an index of gold mining stocks like, for example, the iShares CDN Gold Sector Index Fund (XGD-T), which follows the S&P/TSX Global Gold Index and Market Vectors Gold Miners ETF (GDX) which tracks the large cap producers in the AMEX Gold Miners Index and the Market Vectors Junior Gold Mine (GDXJ) of mid-cap producers. For more information on GDXJ read this [8] article.

e) Closed-end Funds:

According to Rob Carrick in an article [9] he wrote last year for The Globe and Mail closed-end funds are conventional mutual funds that trade like a stock and thus can be bought or sold any time during the trading day (mutual funds can only be sold at end-of-day prices). Closed-end funds differ from ETFs in that they can trade at significant discounts or premiums to the net asset value, whereas ETFs will veer away from their net asset value only temporarily and mildly. Several closed-end funds offer a way to hold actual gold, including the new Claymore Bullion Trust (CGL-T) and Central Gold Trust (GTU.UN-T).

Two key questions to ask:
1. Am I investing in gold stocks or gold bullion?
2. Am I exposed to Canada-U.S. currency fluctuations?

Remember, gold is priced in U.S. dollars and a rising Canadian dollar will undercut your gains. This won’t be a problem if you own a precious metals fund that holds TSX-listed gold stocks, but it might be if you have a fund tracking gold bullion prices.

f) Gold and Silver Coins:

Owning gold and silver coins are another alternative to consider and this [10] article advises you of the pros and cons of doing so and the types of coins available and preferred.

Conclusion

Gold’s rise past $1,500 (U.S.) per ozt. For an excellent article on the significance of the designation of ozt. go here [11]) has created a lot of excitement and raised expectations of more gains to come but as Carrick said in his article, “You’re not buying stocks for a quick score, though. The reason why gold’s a legitimate asset class for investors today is its potential to shine when all else is bleak.” I couldn’t have concluded this article any better other than to ask: 

 How much gold and/or silver do you have in your portfolio?

 *http://www.munknee.com/2011/05/which-gold-investment-should-you-buy-and-how-much/

[1] Take Note: These Analysts Believe Gold Will Go to $5,000 – or More!
[2] How Much Gold Bullion Should You Have In Your Portfolio?
[3] Rules to Follow When Buying Physical Gold
[4] Why Silver at $398.52 is a Realistic Parabolic Peak Price
[5] The “Secret” World of Gold & Silver Company Warrants
[6] Why Gold Could Go To $5,000 – and How To Capitalize On It!
[7] Gold Bullion ETFs: A Primer
[8] GDXJ: A Small-Cap Gold Miner ETF With Big Potential
[9] Buying gold: An investor’s guide
[10] The Pros and Cons of Buying Gold Bars, Ingots and Coins
[11] What’s the Difference Between 1 Gold Karat, 1 Diamond Carat and 1 Troy Ounce?

Editor’s Note:

• The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
• Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.
• Sign up to receive every article posted via Twitter, Facebook, RSS Feed or our FREE Weekly Newsletter.

Gold

Silver Only Has One Way to Go and That is UP!

Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. [Can you imagine what that means for the future price of this, indeed, precious metal? Forget about the popular expression: 'Got gold?' The much more important - and potentially more profitable - question to ask these days is, 'Got silver?'] Words: 972

So says Michael Trudeau (http://bartergoldandsilver.wordpress.com/) in an article* which Lorimer Wilson, editor of www.munKNEE.com,  has reformatted and edited [...] for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Trudeau goes on to say: 

Silver in Crises

The crises deepen. What crises you ask? Well, starting about sixty years ago, we began to accelerate our usage of silver for industrial purposes [and] as the great industrial complex known as America grew, so did it’s appetite for silver and other industrial metals. In fact, it grew at such a pace that we devoured the above ground stockpile of silver at such a rate that it is now gone. That’s right, what took the entire world over five thousand years to acquire, was used up in just six decades, and the above ground stockpile has been completely eliminated.

a) Increased Demand

Silver differs from gold in several important ways. Most notably is that unlike gold, silver gets used up and is then gone forever. Almost all of the gold ever mined in mankind’s history is still here. We don’t really use gold for anything other than money or as a store of wealth and for decoration like jewelry. Silver gets used in all kinds of industries. It’s natural antibiotic properties make it a wonderful instrument in the medical field. It is used in military applications; it’s used in all kinds of electrical switches, relays, and batteries. It’s used in water purification systems and paints, and as a primary component in the photographic industry. Silver doesn’t corrode and has excellent thermal conductive properties. Silver, like gold, has also been used, [and continues to be used] as a monetary instrument for centuries. Moreover, as India and China continue their unparalleled advance into joining the ranks of the industrialized world, the situation will be further exacerbated.

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As if the dramatic increase in industrial demand were not enough of a problem, the plot thickens! Silver is now being rediscovered as an investment vehicle… [and the introduction of a good number of ETFs over the [past two or 3 years] has pulled an incredible amount of silver off of the market.

b) Constraints in Supply

The reason we cannot “fix” the problem by mining more silver is the cost. Today, for example, to mine gold it takes [$450 to $550] to mine, refine, and bring to market one ounce of the yellow metal. With gold trading around [$1400] an ounce, that is a profitable endeavor. Silver however, is mined [primarily] as a by-product. In order to mine one ounce of silver as a primary metal, the cost associated with it is similar to the cost of mining one ounce of gold and with silver trading around [$32] an ounce and that would not even be close to profitable when the mining costs are factored in. Currently we mine around six hundred million ounces of silver each year while industry consumes about eight hundred and seventy million ounces. Can you see a disparity developing? The market is tightening.

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Historical Silver:Gold Ratio Favors Silver

Historically, the silver to gold ratio has been fifteen to one. It would typically take fifteen ounces of silver to buy one ounce of gold. Today, with silver trading at approximately [$32] an ounce and gold at around [$1400] an ounce, it takes [approximately 44] ounces of silver to buy one ounce of gold. This suggests an obvious opportunity as once this ratio [reverts to the mean] we can expect silver to approach a price of [$93] an ounce [based on the historical 15:1 ratio]. Although this analyst tends to remain conservative in his predictions, it’s not at all unrealistic to expect such [significant] profits when you consider the cost we now must face in order to mine silver as a primary metal.

The Case for Owning Silver Coins

Remember, never again will gold be rarer than silver. Opportunities like these come once in a lifetime. I’d suggest you begin to acquire as much silver as your current situation will allow, and to my own clients, I recommend a position in circulated silver dollars that are held by you in your physical possession. Circulated silver dollars trade without any dealer reporting requirements, so they can be bought and sold privately. They are easily recognizable by just about every American, and they offer a good amount of silver in an affordable, liquid, and portable form.

Conclusion

Industry will continue to use and need silver in ever increasing amounts and with this current economic situation and the printing of money out of thin air, silver only has one way to go and that is up.

*http://bartergoldandsilver.wordpress.com/

 The Coming Silver Supernova

Few investment opportunities arise in our lifetime like silver. The stage is set for a percentage gain of extraordinary magnitude! Forget the popular refrain of “Got Gold?” and make some additions to your portfolio to take advantage of the coming silver supernova! Words: 513

So said  Donald J. Poitras in an article written for www.FinancialArticleSummariesToday.com which Lorimer Wilson, editor of www.munKNEE.com, has reformatted and edited  below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.) Poitras goes on to say:

These Facts About Silver Say It All

a) Diminishing Supply: Increasing Demand

• 600 million ounces are mined yearly yet industrial demand is over 900 million ounces per year, and new uses keep expanding.
• Investment demand has exploded with the advent of a number of silver ETFs and the increase in actual ownership of the physical metal by interested parties worldwide (for example China is now encouraging its citizens to own silver; the US mint is rationing silver coins).
• Total known world inventories in the past 75 years show declines in above ground silver inventories of greater than 98%.

b) A Massive Short Position Exists

• Silver has a massive short position, probably greater than any commodity in history. If one factors in short positions on COMEX, the leasing of silver by bullion banks, banks and brokers selling silver certificates and other silver instruments with no silver to back them then it is quite possible that hundreds of millions – perhaps even billions – of ounces of silver are sold on paper that do not physically exist.

c) Inground Silver Is Limited and Will Become Much More Expensive to Mine

• The average occurrence of silver in igneous rock (igneous rock composes ~92.5% of the earth’s crust) is 0.07 PPM or 0.07grams of silver per metric ton of igneous rock, which means that on average 444.3 metric tons of igneous rock must be mined to obtain 1 troy oz (1 metric ton/.07gram Ag)*(31.1gram/1troy oz)!
• Very little silver remains underground because of the geological phenomenon of epithemal deposition.
• Only the recycling of silver-containing products, the mining of scarce surface silver veins and the silver byproduct of base metal mining can provide fairly cheap silver.
• Silver is not found in placer deposits like gold but, rather, in veins and these veins are formed as epithermal depositions or condensation near the earth’s surface (like whipped cream on the surface of coffee). Simply put, the richest deposits are nearest the surface of the earth, and the deeper mines go the less they tend to produce. Economically, the deeper the mine, the more expensive the silver.

The Result: The Price of Silver Can Only Increase – Dramatically!

As current silver is depleted from the abovementioned epithermal deposits and mined deeper at much lower grades (approaching 0.07 grams per metric ton), the costs of mining must skyrocket and consequently the price of silver must explode.

The stage is set for a silver price percentage gain of extraordinary magnitude! It is time to embrace the new refrain “Got Silver?”

Buy Gold and Silver Now As the Ultimate Store of Wealth

The consequences of decades of abuse to the system of credit in the United States are coming to a head and the gray clouds that loom over the skies of the dollar are growing bolder by the day and darker by the minute. The cold hard fact is I expect the U.S. dollar to ultimately collapse within 24 short months. Words: 682

So says Greg McCoach (www.wealthdaily.com) in an article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted and edited [...] below for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. McCoach goes on to say:

Investors have been shuffling currencies around faster than a game of three-card Monte as the true value of world’s paper money is being exposed but in the end, the only real winners would have walked away from the table long ago, their pockets stuffed with the only currency that really matters – gold.

Gold is Still Dirt Cheap!

The collapse of the U.S. dollar will likely push gold prices to over $5,000 an ounce [which] means that, even at $1,400 an ounce, gold is still dirt cheap. [As such,] every investor should own gold right now as the ultimate store of wealth that will protect hard work and savings.

As the world begins to learn the true nature of the world’s funny money, masses of new buyers will come flooding into the gold market and this surging demand will be the catalyst that launches the price of gold into the stratosphere.

Most investors are unaware, but the gold market is incredibly small. There have only been about 175,000 tonnes of gold ever mined [which amounts to] only 0.9 of an ounce of gold for every person on the planet. That’s why they call it precious… [and] when the oceans of fiat money suddenly try to take a part in the gold market, the law of supply and demand will fundamentally force prices much higher.

Don’t Put All Your Eggs in the Gold Basket

1. Silver

While the price of gold will soar and get most of the attention, it’s silver that typically outperforms gold, dollar for dollar invested. In certain instances, when gold prices have doubled, the price of silver has outperformed gold by a factor of more than six-to-one!

Editor’s Note: Don’t forget to sign up for our FREE weekly “Top 100 Stock Market, Asset Ratio & Economic Indicators in Review”.

Investors should also consider owning silver in preparation for the time [when] the government declares a “bank holiday” as the crisis in the banking sector exacerbates. During a bank holiday checks and credit cards would no longer be accepted as payment for goods and services [and silver coins would be ideal for]  buying day-to-day items such as bread and prescriptions drugs.

2. Cash

I also recommend keeping some cash on hand at all times. I’m not recommending stuffing the mattresses; but it’s probably smart to keep a few thousand dollars in 1s, 5s, 10s and 20s around the house. U.S. Silver Eagles would also be very useful in such an event, as they are considered legal tender in the United States and could be used to purchase groceries.

Conclusion

The early adopters — those who wisely purchased their positions in gold and silver before the masses come — will sleep well at night while others fret as they watch the purchasing power of their savings evaporate like water in the Sahara.

*http://www.wealthdaily.com/articles/the-us-dollar-will-collapse-in-24-months/2886

The laws of gold confiscation are very clear in the U.S. During any time of national crisis, it becomes illegal to buy, sell, or “hoard” gold bullion in any form. It is delineated under an Executive Order and can be re-administered as quickly as the assets in your checking account can be frozen. The penalties for violation are 10 years in prison, $10,000 fine, or both. Words: 821

So says Michael Trudeau (http://bartergoldandsilver.wordpress.com/) in an article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted into edited [...] excerpts below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article reposting to avoid copyright infringement.) Trudeau goes on to say:

The freedom to own and retain gold bullion in the U.S. is a temporary freedom, a revocable privilege, and not a basic right. This has been demonstrated on four occasions in American history. Gold was confiscated under F.D.R. in 1933, under President Lincoln in the Civil War and twice prior to the signing of the Constitution. U.S. citizens were only given back this temporary freedom in 1975.

The Possible Ramifications of a MAJOR Crisis
Few would argue that we are rapidly headed for, if not already in, a national crisis. Each month the balance of trade deficit gets worse, while the national debt continues to grow. The FDIC is self-admittedly broke and today could not even repay 10-cents on the dollar, plus we are told that over 1000 banks are operating at dangerous levels — less liquid than many banks which closed right after the crash of 1929. The number of banks closings is already well ahead of 1929 levels and rising.

[Editor's Note: Don't forget to sign up for our FREE weekly "Top 100 Stock Market, Asset Ratio & Economic Indicators in Review"]

Our lawmakers have been busy spending billions and now trillions of dollars a year, which we do not have. They call it “deficit spending.” You might call it “robbery”. At this pace it is obvious we are in a full blown, old fashioned national crisis, the kind where hard working people have lost a large portion of their wealth over the past few years and are about to lose the rest of their entire life savings if action is not taken now.

Might Uncle Sam Want You (i.e. Your Gold Bullion)!
When [the proverbial _ _ _ _ ] hits [the fan], Uncle Sam will not worry about you or your life savings. Uncle Sam will be in a panic to get his books balanced to continue foreign trade and more borrowing if anyone will lend to us anymore. How could the books get balanced in a hurry? Fairly simply: by collecting all available valuable assets and having them reappraised upward.

Need an example? How about 1933 — under F.D.R. gold was confiscated and accumulated at $20.57 an ounce. Once collected, the U.S. government graduated the price of gold up to $35, an increase of approximately 70%.

They say those who are not students of history are doomed to repeat it. Don’t get caught with your Krugerrands, Maple Leafs, Pandas, Pesos or other bullion coins when the hammer falls.

What Gold Should You Own?
The reason you own gold [or are seriously thinking of doing so] is to be safe from any emergency or crisis, especially a national crisis, so what should you do? May I suggest the following strategy: convert a portion of your assets (a minimum of 25% to 30%) into [one or all of] the following:
a) pre-1933 or commemorative U.S. gold coins which have historically withstood the scrutiny of both the U.S. Supreme Court and the Treasury Department scrutiny
b) British Sovereigns
c) Francs
d) silver dollars (but not junk silver which is considered bullion).

The above are classed as collectibles and, as such, you will enjoy several privacy and tax advantages not possible with bullion. There is also a proven wealth building potential due to increasing demand and diminishing supply. Bullion in any form is clearly subject to confiscation. Confiscation is more than just a possibility – it is a reality as a “bust” cycle nears. Do not buy more bullion than you can afford to lose.

When you buy the above mentioned coins to protect your assets, you are simply converting a percentage of your paper assets into precious metals, which will rise in value as the paper money decreases in value, therefore ensuring that your present wealth or assets are protected and you may have a gain on top of that. At some point, when things stabilize, you just convert your precious metals back to paper.

In these economic times the only people who will be able to protect what they have left are the people holding a percentage of their assets in the right kind of precious metals.

*http://bartergoldandsilver.wordpress.com/

Editor’s Note:
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
- Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.
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