Why Silver Is a Better Investment Over Gold… 8 Billion Reasons

The comments below are an edited and abridged synopsis of an article by SRSRocco

The question Steve St. Angelo hears most is, “What percentage of precious metal holdings should be in gold and silver?” He says that, due to real supply and demand forces in the future, silver will outperform gold by a wide margin.

Why Silver Is a Better Investment Over Gold... 8 Billion Reasons | BullionBuzz
A pile of various silver coins, silver bars and jewelry on a mahogany table. Selective focus.

And, looking at supply and demand for silver, we must consider the largest component of the market: industrial demand. For decades, analysts have shunned silver because it has been considered an industrial metal. Even many ‘Elite Gold Club’ members scorn silver, saying that it is not a monetary metal. They couldn’t be more wrong.

Silver is just as good as gold, because they both are stores of energy equivalent value (EEV). However, EEV isn’t all that determines the value of each; the available quantities must be factored in. For example, in ancient times, if two times more silver than gold was available, gold’s value was set at twice that of silver. It didn’t matter if gold cost ten times more to produce; the value was based upon the prevalent total supply of each in the market/society.

We are going to experience the same gold/silver supply and demand dynamics in the future.

If supply and demand plays a role in determining silver’s value in the future, we must understand how much silver has been lost in the industrial sector. We can thank silver for its industrial demand component because a massive amount of supply is now lost forever. Some analysts say there is a great deal more silver in above-ground inventories, but fail to mention that the majority of that is locked up in industrial components, equipment and landfills, never to be recycled.

Silver investors should rejoice that the shiny metal has been deemed an industrial metal by analysts. They are clueless about the coming energy cliff and its effect on the global economy. Because so much silver mine supply has been lost to industrial consumption, silver will provide investors with a rare opportunity: to invest in a metal that will outperform gold, regardless of what the Elite Gold Club members say.

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