Friday, July 13, 2012

Silver is a rich man's metal

Silver is falsely called "POOR MAN'S GOLD":

David Morgan (who happens to be close friends with Mike Maloney) is number crunching here in this video and alleges according to data that there is 700,000,000 ounces of silver mined annually across the world.  Of the people in the United States Of America that vote in the presidential elections this means that each of them would have to purchase about 700 ounces each to dent the supply and increase demand.  Am I wrong?

I conclude that silver at $27 an ounce is too expensive for an average investor to take part in.  If there even is an interest in silver then the rich are going to eventually corner that market because each active voter would need almost $20,000 to invest in this raw metal.  

How much is having a little silver?  One dealer told me to have 365 ounces in case of an emergency or in other words 365 coins which allows one for each day of the year.   Right now if you ordered 365 ounces of American Eagles from say APMEX you would pay about $11,300 in US DOLLARS for that silver.  Who can afford that?

I conclude that silver is no longer a "poor man's gold" it's simply a "rich man's metal".  And the rich want to get richer...and if the price goes up now it will be hard to get a little...

Better [is] a little with righteousness than great revenues without right.
---PROVERBS 16.8

A little that a righteous man hath [is] better than the riches of many wicked.  
---PSALM 37.16

Charge them that are rich in this world, that they be not highminded, nor trust in uncertain riches, but in the living God, who giveth us richly all things to enjoy;
---I TIMOTHY 6.17