China’s Silver Demand Headed UP!
“Problem of raw material supply of primary silver is more and more serious.” mineweb.net
In 1971, when the “Gold Window” closed, average price for 1 oz of silver was $1.52, Gold - $40.62, and a barrel of crude $2.13.
American Silver Eagles (ASE) as a store of value against depreciating currencies has proven itself since US minting of the coin began in 1986. The largest obstacle to purchase the coins (that I believe are reliable insurance against inflation) is the gap between purchase and selling prices. As average prices increase over the coming years, the “gap” will decrease on a percentage basis. Years of relatively low mintage, the 1996 ASE for example, already sells at a multiple of the average price, verifying that selective, more expensive purchases may reap greater reward.
Since 1970, the US$ has lost over 80% of its purchasing power. minneapolisfed.org Goods and services purchased for $1.00 in 1970 cost $5.22 or stated in reverse; what now costs $1.00 could have been purchased for 19 cents in 1970.
To maintain purchasing power parity, an ounce of silver purchased in 1971 for $1.52 would require a price of $7.60 just to stay even with inflation. Right now, spot silver is selling at $11.81 per ounce, far off its high for the year, but still carrying a an intrinsic profit above inflation and taxes required on alternative savings and investments. kitcosilver.com
Currently, un-circulated (not graded) 1996 ASE’s are “BID” over $50. on E-Bay. search.ebay.com
Importantly, ASEs are assets that are under complete control of the owner. No trust is required as to the quality of the asset, except faith in the dealer, which can be verified by inspection of the coin itself. No worries that a company or a broker may be misleading.
FWIW
SargeK |
