Tuesday, January 26, 2016

A VERY TELLING GRAPHIC.....SILVER

A VERY TELLING GRAPHIC.....SILVER

Silver is currently trading at just over $14.25 per ounce – 1/77th of the price of gold at $1,100/oz. I continue to believe that silver will surpass its non-inflation adjusted, nominal high of $50 per ounce in the coming years. Indeed, silver will surpass its inflation adjusted high or real record high of over $150 per ounce in the next 5 to 7 years.

Here are three very interesting charts which contribute to the positive outlook for silver bullion.

Silver Eagle Sales – Full Year 1996 and First 19 Days of 2016



Silver Eagle Sales – 1996 (Full Year) Versus 2015 (Full Year)



In 1996, total Silver Eagle sales for the year were 3,466,000. Now compare that to the 4,950,000 Silver Eagles sold in the first half of January. We must remember, Silver Eagle sales in 2016 started on January 11th. So, in just six working days (this Monday was a holiday), the U.S. Mint sold 43% more Silver Eagles than all of 1996. Furthermore, if we compare sales of Silver Eagles in 1996 versus 2015, this was the result: Investors purchased a record 47 million Silver Eagles in 2015 compared to 3.5 million in 1996. Basically, investors bought 13.5 times more Silver Eagles in 2015 than they did in 1996. OBVIOUSLY SMART FOLKS SEE WHAT IS HAPPENING!

This next chart compares the 20-year change of silver investment versus Jewelry and Silverware demand:



In 1996, total global Silver Bar and Coin investment was only 23 million oz (Moz) versus 264 Moz of Jewelry & Silverware. However, 20 years later… we see a much different picture. While global Jewelry & Silverware demand increased to 280 Moz, Silver Bar & Coin investment surged to 236 Moz.



 

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