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I’ve been talking about silver for the past couple months, and I’m about to tell you the real potential behind all the stories of ancient civilizations, conquistadors and silver coins.
By the time I’m done, you’ll understand why silver is on a unique pedestal. Gold can’t touch it. Platinum doesn’t even come close.
Besides its unique properties (silver is irreplaceable for many industrial uses) the demand for silver is enormous. It keeps rising… and that’s a problem.
The global silver supply is disappearing at an alarming rate. Decades of massive consumption that exceeds production has decimated world silver inventories.
These inventories took thousands of years to accumulate. In many cases, they are gone forever. World demand for silver had exceeded annual production every year since 1990. That means, for 17 years, we’ve been devouring silver faster than we can replace it.
The world is gobbling up natural resources at an incredible clip. Of course, investors who have gotten in on commodities before they make their price run have made a fortune. And while most commodities have enormous runs, silver has lagged behind.
Now, silver is also up about three-fold in the last few years.
That seems like a lot at first glance, but when you compare silver with other commodities, it is very little:
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Oil is up from $10 to $73 or 630% and more than six-fold.
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Zinc, copper and lead are up nearly five-fold.
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Nickel from $3 to $22/lb or more than seven-fold.
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Indium, Molybdenum, Selenium and Cobalt are all up 1,000% or tenfold and more.
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Uranium is up a phenomenal 1300% or 13-fold.
Many commodities are up between five- and 13-fold. But even with its severe supply and demand crunch, silver is not even up three-fold. That’s all about to change, and here’s why…
Stockpiles of silver around the world, which have been keeping silver prices artificially low, are now dwindling. That’s one of the reasons why silver investors shifted from being net sellers to net buyers last year.
Over the last few years, there has been a massive amount of short-selling in the silver market. This, too, has kept the price of silver at artificially low levels. Silver prices have moved up, but not in proportion to the exploding supply and demand gap.
But here’s the thing: According to the Commitment of Traders (COT), a report released every Friday by the U.S. government, the current COMEX silver short position is the largest short position in the entire history of the commodities markets.
In fact, the four largest COMEX traders are short roughly 264 million ounces of silver, as of July 31, 2007. That’s a new record.
Now, the entire global silver supply stands at roughly 300 million ounces. Think about that... There’s barely enough silver on the planet to cover these short positions, and by law, the silver shorts must buy silver to cover their short positions.
According to Theodore Butler, a former commodity trader and perhaps the world’s foremost expert on silver, “It is the existence of this concentrated short position that will, at some point, launch the silver price to the heavens.”
How high could silver prices go?
Forbes magazine ran an article recently that put silver’s historical average price at $150 per ounce, after you account for inflation. Currently, silver is trading at $13 per ounce. I think you’ll agree: This offers one incredible buying opportunity.
Even if it only reaches its average price for the last 600 years, you’re talking about an 11-fold gain. And a 50- to 100-fold gain isn’t out of the question.
So, should you stockpile silver coins? Fill your basement with silver bullion?
Well, you could. As I mentioned, silver has returned a triple in the last few years. And it will continue to rise. But holding coins, bars and bullion is a hassle. You have to store it, insure it, protect it. You also have to worry about the quality of the silver you are buying.
There’s a much easier way...
Actually, there are two, but I’m only going to tell you about one today. You’ll have to wait for the other one to come out in my next Material Profits special report titled, “The Lost Treasure of the Sierra Madre.”
Let me take a moment to explain one of my favorite options, the EverBank Five-Year MarketSafe Silver Bullion Certificates of Deposit, in a bit more detail…
It may be one of the safest ways to play this incredible potential in silver, and it’s perfect for those investors who may be a little wary of putting money down in a market historically noted for intense volatility and the subject of so much speculation.
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It’s a 100% principal-protected silver CD, on offer from EverBank. The CD is indexed to the price of the metal itself, and offers these unique, risk-free elements:
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Your principal will be 100% protected – there is no downside risk
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Your minimum deposit to get started is only $1,500 – this is a great way to save and earn money
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The five-year term is based on the spot price of silver, so if the metal were to break to the upside within the next few years of trading, your account would benefit accordingly
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There are no account fees, and like all EverBank MarketSafe products, this one is FDIC insured
As we have a business arrangement with EverBank, we’re authorized to let you know well in advance of other media outlets. Of course, as you may already know, we may receive a fee if you open an account.
But as with the other CDs from EverBank we tell you about, we think this is a unique way to play a trend in the marketplace… and boost your savings at the same time. If you’re interested, we urge you to check out this site right away!
The MarketSafe Silver CD is a remarkably safe way to both boost your savings and benefit from any upside in the silver market over the next five years. Your principal is 100% protected for the entire ride.
Go ahead and check out the all the details by visiting EverBank’s site by using this link, or by calling 800-926-4922.
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