Important considerations for silver investors

Some important things you should consider as silver bullion investors.

· Silver in bullion form is a very safe investment – it is no one elses liability
· In your possession it is totally removed from the financial system & government
· On almost any inflation adjusted measure silver’s true value is well in excess of $100 per oz but it may take years for the market to recognise this
· Silver is money at all times under all circumstances – paper money has and will come and go, silver has stood as money in all cultures for hundreds if not thousands of years
· Silver is a great inflation hedge – its buying power has stood the test of time. Silver still buys the same litres of oil as it did in 1950 or same bushels of wheat it did in 1600.
· Silver is a great catastrophe hedge – war, famine, disease, financial meltdown . Unlike financial assets silver excels in these environments.
· Silver ownership by the masses is at the lowest point of history
· It took 1000 ounces of silver to buy a house in Sydney in 1980, today it takes over 35,000
· Silver is dramatically undervalued versus gold – 500 years of ratio 15-1 (sometimes even parity) today it is 60-1
· Unlike gold most of the silver mined in history no longer exists
· Silver mining supply is diminishing rapidly due to rising mining costs and the fact that silver is most often a by product of other metals such as zinc or copper
· Silver has the most patents pending of any metal due to its unique medicinal, antibacterial and conductive properties
· Silver is the most conductive of all metals its use in nano technology is rising dramatically
· Silver is set to compete with platinum for use in catalytic converters for diesel engines
· Demand for physical silver is increasing rapidly at industrial and investment level
· Worldwide shortages of physical investment coins and bars is an early sign smart money is mobilising into silver
· Most wealthy families in history have used gold and silver as a store of wealth

Alternatively,

· Silver and Gold are political metals inciting war and deception throughout history
· Silver and gold are the governments and banking systems worst enemy because they hold governments to account on printing money, controlling interest rates, are difficult to tax and generate little commission because they are hoarded not traded.
· Silver is a volatile metal – price can fluctuate 30% in one trading day
· Paper silver (futures, ETF’s options, derivatives, shares etc) often trades at a significant discount to real market prices for physical
· Silver (&gold) are manipulated in price by central banks and governments
· Manipulation to restrict the price is actually a good thing because it creates value for those willing to buy on discount hold for the longer term
· Gold has been confiscated and deemed illegal to own by governments including US (1930 – 1971)
· Paper silver would be impacted by government price controls or ownership restrictions, but physical gold and silver would likely thrive in underground market (as happened in depression & WW2)
· Never give (sell) your bullion back to the government under any circumstances – bury and say its lost.
· Silver can be melted down if you require smaller denominations

Day to day rules,

· Don’t watch the daily price – this is a minimum 4 year investment I would recommend no selling until at least Mar 2012, but prefer 2018.
· In my view we could see a worldwide collapse of the financial system within 6 months, under these circumstances it is almost certain paper gold & silver will go down as leverage is unwound and people strive for cash. However, in this situation the physical market will thrive with the paper market catching up shortly after as bankers realise the only safe haven will be gold & silver. Great buying opportunity.
· Dont panic!!! Silver will never be worth nothing like paper money will be.
· If you can average down, buy more as the price declines
· Price is not important, its all about how many ounces you own!!!
· Even if silver goes to $5 per ounce petrol will be 50c per litre. Your buying power in todays dollars will be maintained. Dont see this happening though do you?????? Especially with peak oil with us.
· Remember in 1980 dollars 400z of silver is just under half a Sydney house!!!!!!
· Be patient................