Why Invest in Silver Coins Now
Silver can fill a unique investment niche for investors looking for a highly liquid, low entry point, and excellent safety-conscious investment that still offers significant profit potential. Like gold, silver has entered what I believe will be an extraordinary bull market, and is poised to rise to levels not seen in recent years. In fact, I believe silver may be the most undervalued asset in the world today – a truly historical opportunity for investors.
Rarely in a lifetime are we given the opportunity to participate in a truly significant investment bull market. We believe that we are witnessing a bull market that will not only yield enormous gains, but might in fact reward some savvy investors for many years to come. But to profit, you need to position yourself now.
From the 1970s to 1980, silver soared from $1.50 to $50.00 an ounce – that is a 3,300% move. That means a $25,000 investment in silver at $1.50 an ounce soared to over $825,000 in 1980.
While Silver is currently significantly undervalued , the fundamentals to invest in silver coins are stronger now than at any time since 1971. An enormous supply/demand shortfall has developed in silver. However, unlike in the 1970s, there is no longer an overwhelming above-ground supply of silver available today. What limited silver supply there is will, for all practical purposes, evaporate over the next few years.
The silver price, like the gold price, has been artificially suppressed by central banks, governments, wealthy speculators, and even the mines themselves.
Through a complex series of leases, silver sales and derivatives, a two billion ounce global short position in silver has been created. This is by far the largest silver short position in history … more significant than even the early 1980s.
As these different entities begin to dissolve what little above-ground silver actually exists for current consumption and delivery, a huge short squeeze is likely to develop. This short squeeze will propel the price of silver to historic levels.
Over the past 30 years, we have recommended that customers maintain a portion of their assets in silver coins. The objective was to have some silver coins that would serve as both a portfolio hedge and as a survival position in the event of a crisis. We are now advising clients to also purchase silver for its profit potential.
There are Three Best Ways to Own Silver
- US Circulated 90% Silver Coins
Traded in bags of $1,000 face value and containing approximately 715 ounces of silver, 90% bags currently represent the least expensive method for purchasing silver per ounce.
- US Circulated Silver Dollars
Circulated silver-dollar bags contain 1,000 circulated US Peace silver dollars, over 75 years old, in very good condition. Circulated silver dollars offer the investor greater anonymity because they are dealer non-reportable. Because they are considered a collectible, they are also less likely to be confiscated, as bullion silver was in 1934. The circulated silver dollars also offer the investor a double play on both the silver content and the scarcity of the coins.
Each bag of 1,000 silver coins contains about 770 ounces of silver. Circulated dollars can be purchased in bags of 1,000 coins, or in fractional bags of 500, 250, or 125 silver dollars.
- Investment Silver Dollars
For investors that are interested in numismatic silver dollars, collectible coins that have significant investment potential, the certified MS63 to MS65 US silver dollars make an excellent investment for a security and profit double-play. Historically, they have traded at 5 to 10 times the spot price of silver.
Also, rolls (20 coins) of MS 60 Morgan and Peace silver dollar are a popular and profitable method of investing in the most widely held collectible in the world.
Whichever way you choose to add silver to your precious metals portion of your investment portfolio, you stand to recognize substantial gains as market forces work to force prices upward for this currently undervalued market. One of our staff experts at McAlvany’s ICA will be happy to discuss your unique situation, and how silver can play an important part in achieving your security goals and recognizing tremendous profits.