Insurance against failing dollar

Gold of course (and silver to some extent too) is the best insurance for protecting yourself against a failing dollar. Bullion is the international currency that has always been accepted in transactions throughout thousands and thousands of years.

Gold Seen by Merrill Lynch Rallying Above $2,000 Next Year

Bloomberg News recently published an article with a quote from Merrill Lynch Wealth Management, stating that, "Gold is poised to rise above $2,000 an ounce next year, while lack of clarity on demand outlook and policies in China dim prospects for industrial metals.”

That said, gold should be strong moving into 2013. “We are holding gold at the moment,” says Bill O’Neill, chief investment officer for Europe, the Middle East, and Africa.

After hitting a record high of $1,921.15 back in September 2011, gold prices are expected to rise above $2000 an ounce for the first time. This would be the 12th consecutive year of annual growth, the longest streak since prices were first recorded by Bloomberg in 1920.
While there is a lack of clarity on expected demand for industrial metals in 2013, largely based on China, O’Neill expects gold to stay strong and growing. “This doesn’t necessarily mean we are not going to commit to anything [metals] other than gold in 2013,” O’Neill says, “but for now we don’t see this being part of the portfolio.”

http://www.NumisInternational.com

Gold is ready to protect your assets

In the fourth quarter of 2012 gold prices have plateaued after a 12% increase in the third quarter (in my opinion, in the anticipation of the Federal Reserve’s slackened monetary policy).

Per usual, gold analysts have varied expectations on the direction of gold prices.  However there are a couple of International Monetary Fund analysts who have been writing about legislating away bank created money. That is, returning to the gold standard.
 
As the owner of jewelry store and precious metals seller Numis International, I believe that would send gold prices skyrocketing. We might not be far from changing money systems completely. Our current crisis may hasten the transformation of money systems.

While it sounds drastic, money systems have changed every 30-50 years over the past couple centuries. Gold was used as money from the Civil War to World War I. From the creation of the Federal Reserve in 1913 to the end of World War II, gold was tied to paper notes, through a fixed rate of exchange between the U.S. and foreign central banks. Since 1971 we have had the same system Nixon established by ending the even exchange from dollars to gold.

Most of us have lived our lives with the dollar, but for generations before us, people didn’t. The same goes for other currencies in various countries. “At some point, we may wake up and find out the system won’t work anymore,” Notowitz says.

I am expecting our money system to fail by 2020, in a dramatic fashion. Paper money will become worthless, but gold and silver will shoot up.

I have a lot of confidence in silver and gold. People are losing confidence in the currency and they want something with intrinsic value. Gold and silver are that medium that people will use to purchase in any future economic disruption.

Silver or Gold... which precious metal is the best investment?

It seems that silver might be the best raw material for investors to hold on to. At least that’s what long-term silver analyst Israel Freidman told Mineweb.com last month in a conversation on the sustainability and future prospects of silver.

Although Freidman’s hypothesis has been largely criticized, he does make some poignant observations about silver, largely based on its industrial and investment demand.

Freidman predicts that silver will grow steadily with GDP and population. This is mainly based on the high energy conducting power of silver and its use in electricity networks. There’s really no better, accessible metal conductor than silver, and as construction around the world continues to grow, silver will be needed readily to fulfill demand. Not to mention silver’s use in many technologies, including solar panel manufacturing (a market sure to grow in the coming years).

Friedman references the underlying growth of silver in the last thirty years, despite losing key markets like the photographic field (now a digital photography field). However, aiding the industrial industry is a strong consumer investment in silver. The U.S. Mint Silver Coin is the most popular in the world, and Freidman think that one day it will be in such high demand that premiums will increase exponentially.

With the combination of raw industrial use and high investment demand, Friedman expects silver to one day surpass the price of gold. That might be a lofty prediction, but it is nice to know that maybe silver will be a better investment than we’ve expected.

Visit us at Numis International in Millbrae for more details, to meet Uncle Al, and to sensibly invest in silver bullion, gold, and rare coins.

Can Gold Reach $10,000

Long term gold price targets get more and more optimistic with some respected analysts seeing $10,000 gold ahead – this may seem unlikely but only a few years ago $1,000 gold seemed out of sight!

Read the full story here: Gold to $10,000.

Everyone Loves Gold These Days…

Everyone loves gold these days. Deutsche Bank sees $2,000 gold soon. And Citi says it could go to $2,500 in six months.

BofA, too -- the firm recently initiated a $2,400 target price for the shiny yellow metal since the Fed's announcement of open-ended bond buying.

However, BofA analyst Stephen Suttmeier thinks there's a case to be made that gold goes even higher than the bank's official call.

Everyone likes to pick a gold price number, but nobody really knows for sure what it's going to be. All I can tell you is that a free-market gold price has never existed in all of history...and if it was allowed to trade freely, the market-clearing price would make your eyes glaze over,

Silver also has a long way to go....if it could be allowed to trade freely we would see much higher prices too.

Al

When You Buy Gold - Be Sure To Take Physical Possession Of Your Investment

Friends,
Investing in gold, in my opinion, should be a priority. In fact, ten percent of your assets and personal savings should be in gold. However, don't fall into the misconception that investing in gold mines or gold exchange traded funds is the same thing. Nothing could be further from the truth.

My recommendation to own gold means buying the actual, physical, take possession of the yellow stuff.

Feel free to speculate in short term price changes and take chances with buying shares in gold mining, but don't consider that as part of your 10% gold investment.

The main reason to own gold is as a way to reduce the risk faced by investing in the stock market -- including bonds, mutual funds, ETFs, and foreign currencies.

Owning physical gold bullion also avoids the risks of companies having bad management, countries having political upheavals, companies facing labor problems, and investments harmed by tax and regulatory changes.

Gold is a good thing.

You can also benefit from the relative anonymity that comes with owning the metal. It's liquid anywhere in the world; everyone speaks gold.

SILVER - the great precious metal bullion opportunity for 2012

Dear gold and silver bullion investor friends,

Silver today is a great opportunity. I see the metal as the perfect opportunity to get involved or to get re-involved with the precious metals markets. Take advantage of these markets now.

Below is an end of year pricing of gold over the last 11 years. It's an interesting study, as we watch the price going up and up and up. I feel that this has been caused by constant deterioration of paper currencies around the world, and it makes all those temporary ups and down irrelevant. 

Demand for gold and silver appears to be renewing which will push prices to the upside.

The gold price for the last day in each year

2000 -- $273.602001 -- $279.002002 -- $348.20
2003 -- $416.10
2004 -- $438.40
2005 -- $518.90
2006 -- $638.00
2007 -- $838.00
2008 -- $889.00 
2009 -- $1096.50
2010 -- $1421.40
2011 -- $1566.80

Al 

Collapse of MF Global And Its Direct Impact On You

An Unmitigated Disaster

Dear Friends,

MF Global -- one of the world's largest commodities brokers -- went bankrupt just a week ago. One of the amazing and undiscussed results is the failure of a huge commodities brokerage to protect the gold and silver assets of its direct customers.

Follow the link below to the unabridged and insightful words of Ted Butler, a world expert on buying and selling and owning silver. His words go right to the heart of the matter. Should you buy physical gold and silver?  Should you just buy stocks in gold and silver funds?  Should you buy gold and silver bars and store them safely in a place only you and your loved ones know about?

Often the true magnitude and impact of events as they happen is not completely realized at the moment they occur. Instead, people realize many years later that a significant event took place.

Read his article about the failure of MF Global and its impact on the methods for buying and selling gold and silver bullion: http://www.investmentrarities.com/ted_butler_comentary11-14-11.shtml

And many more articles on Ted Butler's website, http://www.butlerresearch.com/

Al


NEWS UPDATE:  The money just disappeared. 1.6 billion gone -- or should I say stolen?  In addition to the important article above, read this also:  http://www.foxnews.com/politics/2012/02/23/investigators-probe-money-transfers-in-investigation-into-missing-mf-global/

Is Gold The Next Real Estate Bubble?

Dear friends,
As I write this, gold bullion in the last year has risen from $1313 to today's current price of $1743. That's a 32% rise. Is gold in a bubble? Will it fall by half in the next 6 months? Is gold really facing the next real estate collapse? We all know that in the financial markets anything is possible. Gold could fall, but I believe that is highly unlikely.

I read a lot of reports on the gold market, some written by market analysts and some by gold miners, and even more than that, we live gold here at Numis every day. For years we have sold, bought, and made loans on gold, silver, and platinum. We create jewelry and repair jewelry too! So I'm immersed in gold in all kinds of ways --- at the street level.

Here's an opinion claiming that in the minds of many, gold is replacing the world's monetary systems. A fascinating read. Thanks to the writer James Turk, founder of GoldMoney. Here's the link: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/24_James_Turk_Report_-_Why_Gold_Will_Go_Above_%2411%2C000.html

Feel free to contact us if you have any questions.

Al

The CRAZY SECRET why the Wall Street Journal won't accurately report about the gold standard

Dear friends,

There is a CRAZY SECRET why the media is bashing and misinforming us about the gold standard.

The gold standard. What does it mean that it is a good idea to go back to that system?

Have you noticed that your friends and family and every media outlet is talking about gold and gold prices and the gold standard -- but no one really knows what they're talking about?

Why all the strange misinformation about the gold standard?  Why is the mainstream media scaring us about going back to that system?

Is the solution to have a gold standard?  And what is a gold standard?  How would it look in our modern world of electronic payments?

If you value your freedom, read the following link.

Great info regarding the gold standard and how our lives and economy was affected when the gold standard was abandoned, and understand why the WALL STREET JOURNAL won't honestly talk about it:

http://www.growthstockwire.com/2821/Weekend-Edition

Please read, and please think about it.

Al

Is silver is more rare than most people think? Are the bullion markets manipulated?

Dear friends,
Nothing lasts forever. Governments fall, religions fall, and monetary systems fall.

For many years I've been encouraging you to look into investing in gold and silver bullion. Gold is a metal that maintains its value, for thousands of years, even in terrible times of governmental upheaval. Silver also will protect your savings when paper loses its worth.

Today I found some very excellent insights into the silver bullion market by David Morgan. It's a little technical, but if you're interested in the bullion silver market, this is MUST reading.

Are the silver and gold markets manipulated?  Or are they free markets?
If they are manipulated, how? How does knowing this help us to safely invest in the metals?
Fascinating.

Following the excellent article is a more complete interview of David Morgan by Chris Martenson.

The full article can be read here:
http://lewrockwell.com/martenson/martenson11.1.html

One of the most important notes I've sent in years

Dear friends,

This is not an easy note that I'm sending you, but I feel a heavy responsibility to help you get a handle on what is going on with precious metals and why they are going up so consistently right now.  I've been studying these markets for 40 years, and I've recommended gold and silver before and at much lower prices, but now things are really getting scary with the instability of the dollar.  Because the dollar is so weak, people are fleeing into hard assets.  It's only natural for everyone to try to protect their purchasing power.


Over the last 30 years, the purchasing power of the dollar has declined over 80%. In my opinion, the purchase of silver and gold will give you a strong weapon against the huge inflation that I see coming.  I fear that the government's debts have reached the point of no return.  When this happens the temptation for the government to print money is irresistible, and each dollar, therefore, becomes worth less.  And this is exactly what is happening right now.


People always ask me how high precious metal will go, but the real question is, "How low will the dollar go?".  My opinion is that the dollar will continue it's drop in purchasing power for an indefinite period.

Your job is to protect yourself and your family the best you can.  Call me to discuss any questions about what I've written and how to proceed to purchase metals if you so desire.  It's never too late to start.

Regards,

Al Notowitz

650-697-6570

P.S. Pay attention carefully.

What is making gold move is not a fad. Gold is totally unlike bubble investments during the dotcoms or more recently with real estate.

I once thought the U.S. government had a chance to save the dollar; I don't feel that anymore.

WELCOME! Introduction

To many in the San Francisco Bay Area, Numis International in Millbrae is as trusted as a close family member. Expert in antique & estate jewelry as well as precious metals and rare coins, we serve our clients with the most up-to-date precious metals prices and investment information.

As the market for gold, silver, platinum, and other precious metals has heated up, the hunger for daily updates, news, and your requests for our opinion about the future of bullion prices has only increased.

This is our attempt to provide updated information on the precious metals markets around the world.
I welcome your comments and discussion.
Enjoy,
Al

Precious metals laugh in the face of making a correction.

Dear Friends,

The following is from DailyWealth.

I must say that the gold, silver, platinum, bullion precious metals markets have been amazing the last year.  I knew this would happen some day, but I wasn't imagining how I'd feel about the whole experience. 

Ignore the markets at your own peril.

To your success!

Uncle Al

------------------------------------------------------Chris Weber writes: The last time I was able to identify a period when a precious metals correction was about over happened two years ago...

At that time, gold hit a low of $693 and silver $9.63. Since then, gold has risen over 40%, but silver has soared 158%. This is an extraordinary occurrence in just two years.

Two weeks ago, I thought both metals, and especially silver, were due for a rest, and perhaps a correction.

Silver reached $24.75 on October 14. I expected a back-off to begin. But so far, we've had very little. Silver briefly touched as low as $23. That is a 7% fall. In the universe of silver, this is nothing. And then the rise resumed. As I wrote this, silver reached a new high of $24.91, surpassing October 14's $24.75.

This all feels unprecedented to me. Gold has not been giving people an advantageous entry point for a long time now. But silver is supposed to crash at certain times... It can almost be relied upon to do this.

Not this time. At least, not so far. Given an opportunity to correct or even consolidate its prior gains, silver barely takes a breath and then reaches new highs.

Why? Some say silver shorts are covering. But why now? Why this time? Silver prices refused to fall, and then rose... Of course under these circumstances shorts will cover.

No answer I've heard is satisfying. I just take the price action as the news. And the news is that this is bullish behavior the likes of which I don't think I even saw back in the last bull market of the 1970s.

Of course, over the life of that bull market, silver soared from $1.29 to $48: a rise of 3,600%. So far this time, silver has only risen from $4.03 to $24.91. That's "just" 518% during a similar time period.

But the feeling this time is different. Silver has only had one typical correction: from $23 to just under $10. But while the percentage correction was typical (over 50%), it was all over in just seven months. A huge and powerful bull then quickly returned silver to new highs.

And so far, this time, when I expected a real rest, silver isn't having it at all.

It is possible that average investors now think that gold is too expensive for them and see silver as something they should have. For a few hundred dollars or the equivalent in other currencies, silver is regarded as within the budgets of all investors, be they from India or Indiana, from China or Chinon.

Can you imagine what would happen if every investor on earth became convinced that they needed to own some silver? My old forecast of $187 per ounce may start to not look so wild.

One other thing has happened recently that I haven't seen mentioned. Silver has now clearly overtaken gold as the best-performing asset class since 2000. Gold has risen from $256 to $1,365. That is a rise of 433%. Silver has risen from $4.02 to $24.91. That is a rise of 520%.

As important, those advising silver accumulation have been few in number, and remain so.

For those who have been waiting to buy or add to their silver holdings, there is no guarantee we'll have any big correction, or even a consolidation. I'm forced to advise people to simply buy or add without trying to time their purchases.

In general, this is what you should do in a bull market, but I had until now thought I was clever enough to attempt to time purchases a little. I no longer consider myself so clever. So my advice is to bite the bullet and accumulate at least some physical silver.

Good investing,

Chris Weber

Note from Editor of DailyWealth: We have never seen Chris Weber wrong about any major market call – which is why he's made millions from his investments alone for the past 35 years.

Newest important story on gold

Great story on gold
Please follow this link.
Al

http://www.reuters.com/article/idUSTRE6932NR20101004

"Silver is set to Shine," says Rosland Capital's Senior Economic Advisor

Dear friends,

Yes, I'm stuck on silver.  But I think it's an opportunity unsurpassed by any other current investment package.

I've reposted below an article for you to digest.

Read it, and tell me if  you agree or disagree.

All the best,

Al

--------------------------------

NEW YORK – Jeffrey Nichols, Senior Economic Advisor to Rosland Capital, had the following commentary based on recent market activity and the week ahead:

The now ten-year old bull market in precious metals has seen the price of gold move up well beyond it previous historical peak near US$875 reached briefly in January 1980. But silver has still not surpassed its all-time high of $50 an ounce -- and even remains well below its current cyclical high of $21 an ounce reached in 2008 -- leaving silver bulls disappointed but optimistic that huge gains are still ahead with the white metal ultimately reaching and surpassing its 1980 peak price in the years ahead.

Even as investment demand for silver has soared, in part due to the introduction of silver exchange-traded funds in 2006, global macroeconomic trends have cut deeply into silver jewelry and industrial use while photographic use, once the largest consumer of silver, has continued to lose ground to digital photography. 

In the next decade, a rebirth of silver industrial demand, thanks to the emergence and growth of a number of new end uses, will join continued strong investment demand to push silver prices sharply higher with the white metal gaining not only against the dollar and other old world currencies but also outperforming gold. 

Silver Mine Production

Meanwhile, silver mine production will remain relatively inelastic.  To a large extent, silver is mined as a by-product or co-product of other metals (lead, zinc, copper, and gold) -- and is dependent on mine-supply situation for these other metals and less on its own positive fundamentals. 

Only about 30 percent of total silver-mine output is from primary production, that is, from mines that are primarily silver producers, from mines that exist principally to mine silver.  About 15 to 20 percent of silver mine supply is as a co-product and the bulk, about 50 percent, is mined as a by-product where the price of silver has little influence on mine economics and decisions to invest in mine exploration and development.  Importantly, this means that the expected rise in the price of silver will not be countered by a concomitant rise in mine supply. 

Physical Investment Remains Strong

Looking ahead, physical investment demand -- for bullion coins like American Eagles and Canadian Maple Leafs, for small investment bars, and ETFs -- will continue to expand in tandem with gold as growing numbers of Western investors seek safe-haven and hedge assets. 

At the same time, growing numbers of Eastern investors and jewelry consumers -- in China, India and elsewhere -- will also accumulate physical silver, reflecting rising personal incomes, silver-friendly government policies, and the maturation of precious metals market institutions and infrastructure. 

The perception of silver as a cheaper alternative to gold -- as "poor man's gold" as the metal is often called -- and a growing recognition of the white metal's increasingly bullish supply/demand fundamentals will also foster rising investor interest around the world. 

On the investment side, gold has benefited from a significant step up in institutional participation from hedge funds, pension and retirement funds, insurance companies, and sovereign wealth funds.  So far, silver has not enjoyed equal recognition from these large players -- but this is likely to change as fund managers recognize silver's relative value and simply wish to diversify their precious metals exposure.

Silver Demand Trends

The biggest silver end-use sectors are first, jewelry and silverware, followed by electrical and electronics, where the metal's outstanding conductive properties are unparalleled.  Both categories were tarnished by the global recession . . . but thanks to the economic recovery in the Asian economies and the tenacity of computer and consumer electronics demand everywhere, silver usage by these industries is beginning to pick up. 

In addition, we anticipate growing price-inspired substitution of silver for gold by jewelry manufacturers seeking to remain competitive with costume jewelry and other consumer purchases. 

For much of the past century, consumption of silver in photographic films and papers was, by far, the biggest end use of silver, at times accounting for 35 to 45 percent of annual industrial fabrication demand.  Today, photographic use is less than 10 percent of the total market -- and it is continuing to decline both in tonnage and as a share of the market due to the expansion of digital photography among consumers and, increasingly, professional photographers. 

The really exciting news for silver, in addition to the strength of investment demand, is the advent of new industrial and commercial applications.  Together, new applications may not amount to much this year or next . . . but within a few years the ounces will begin to add up and will make a meaningful bullish contribution to aggregate silver market supply/demand fundamentals. 

Its outstanding qualities as an electrical conductor, its unique anti-microbial properties offering protection against infection and disease, its excellent reflectivity, make silver a 21st-century metal.  Silver investors and analysts will be hearing more and more about solar energy, medical applications, antibacterial textiles, radio frequency identification devices, batteries, water purification, and culinary hygiene. 

Very importantly, the quantities of silver used per solar cell, kitchen countertop, surgical appliance or bandage, fabric garment, RFID, plasma screen, and other emerging end-use products are infinitesimal -- measured in microns or nano-units.  But, in not too many years, this will add up to millions of ounces a year in silver consumption. 

The fact that silver content per product is so small means that industrial demand for silver in these applications is highly price inelastic -- so that even a doubling or tripling in the metal's price will have little significant impact on consumption.  What's more, the rise in silver usage from these emerging industries should continue apace even if the Western economies remain lackluster -- or worse -- over the next five or ten years. 

Spotlight on New Uses

The most immediately promising high-growth end use for silver is from the rapidly growing solar-energy industry where the metal is used both as a conductor in solar cells as well as a reflector in mirrors.  The industry is on a high-growth trajectory thanks to government tax incentives, the imperative in some countries for energy independence, and a popular desire for alternative, clean energy.

Another new and already growing use on the cusp of rapid growth is radio frequency identification devices.  Manufacturers, distributors, and retailers are beginning to use RFIDs in place of bar codes that require visual scanning.  RFIDs can be scanned through shipping boxes, grocery bags, and even bulk containers.  What's more, RFIDs are already in significant use by a number of nations for personal identification in passports and other documents, including air and rail transportation tickets in China at a rate of billions per year. 

Next, the medical sector is beginning to turn to silver for its remarkable anti-bacterial qualities.  Surgical bandages, wound treatments, catheters, surgical and hospital garments, catheters and pacemakers are all new and important end users for what some may consider a miracle metal. 

Similarly, its biocidal properties is leading to new use of silver in culinary products to promote food and kitchen hygiene with countertops and surfaces, cooking utensils and appliances, vending machines, and food packaging that contain tiny amounts of silver. 

The textile and clothing industry -- particularly sportswear, athletic clothing, and footware manufacturers, is also beginning to look to silver as an effective preventive of bacterial odors that thrive on sweat and body heat. 

I mention these emerging new uses not because any will influence the silver price this year or next . . . but together they will take more and more ounces in the years to come with eventual implications for aggregate silver demand and future price prospects. 

Price Prospects

By historical standards, the gold/silver price ratio suggests that silver is an undervalued precious metal.  Today at 68, the ratio simply means it takes 68 ounces of silver to purchase one ounce of gold. 

Some silver enthusiasts take comfort in the fact that over thousands of years the ratio held fairly steady around 15 or 16.  Other's point to the geological fact that the Earth's crust, as best as scientists can measure, contains some 17 or 18 times more silver than gold.

Over the past decade the ratio has been as low as 45 in 2006 and as high as 82 in 2008.  Recently, it has been near the middle of this range around 65. 

To my way of thinking, the gold/silver ratio has little predictive value -- except to the extent that expectations of a return to historical norm may be a self-fulfilling prophecy. 

What counts most are the supply/demand fundamentals in each market and the intensity of investor interest in one metal relative to the other.  Yes, investor interest in one metal versus the other may be influenced by the perception among some investors and speculators that the gold/silver ratio is above (or below) some historical mean -- but that will go only so far and last only so long. 

Ultimately, it is the relative market fundamentals that matter most -- and I believe the fundamentals now favor silver.  These fundamentals are (1) the recovery of worldwide jewelry and industrial fabrication demand, (2) the emergence of significant new uses in the years ahead, (3) the inelasticity of demand relative to price in some end-use industries, (4) the inelasticity of supply, given that at least 70 percent of silver mine output is a co-product or by-product of other metal mining, and (5) rising investor interest among both retail and institutional investors in the old industrial world and the newly industrialized Asian nations. 

Based on silver's own improving supply/demand fundamentals, I expect higher silver prices in the months and years ahead.  Consistent with my forecast of $2000 gold in the next few years, I expect silver to hit and surpass its 1980 all-time peak around $50 an ounce.  For those who want to know, this works out to a gold/silver ratio of 40  From an historical perspective this is certainly not an unrealistic relationship between the two precious metals. 

Great article - Silver - historical pointers to better things ahead

Hello friends,

I've reprinted below an article you must read.

It's from author Rick Mills.

All the best,

Al

---------------------------

COQUITLAM, BC (AHEAD OF THE HERD) - 

In the time of the ancient Babylonians - long before the periodic table - there were seven sacred metals: gold, silver, copper, iron, tin, lead and mercury.

In Roman and Greek Mythology, the First Age was called Golden, the Second Age Silver. Apollo, the god of truth and light, and teacher of medicine, carried a silver bow.

The hieroglyph of Isis (Egyptian moon goddess) is a crescent and images of her are usually reproduced with her standing on the Crescent. This has also become the symbol for silver - on old maps a crescent shows the location of a silver mine.

Islamic alchemy gave silver an important place, alchemical procedures were defined in terms of silver - the silvering of other metals, the act of giving other metals silver like qualities.

We've long practiced the science (metallurgy) of separating silver from lead - the earliest known workings of any significant size were those of the pre-Hittites of Cappadocia in eastern Anatolia, the first sophisticated processing of lead-silver ore was attributed to the Chaldeans around 2500 B.C.

Silver metal was recognized as more precious than gold when bartering in ancient Egypt - this recorded as early as 930 BC. Silver's use as money in coin form began around 2600 years ago. The Lydian (present day Turkey) Trite is considered by many experts to be one of the first coins used as money. It was made of "Electrum", a silver and gold mixture. Egyptian silver in coin form began appearing around 300BC. 

Silver and gold have stood the test of time, as a medium of exchange, a storehouse of value and a safe haven in times of turmoil.

The history of fiat money has always been one of failure (the downfall of most paper money economies can be linked directly to the costs of financing out of control military growth and wars). Every fiat currency since the Romans started diluting the silver content of their denarius has ended in devaluation and eventual collapse of both the currency and of that particular economy.

For the very first time in our history, all money, all currencies, are now fiat - the US dollar use to be gold backed and it was the rock all the worlds currencies were anchored to - when the US dollar became fiat, all the worlds currencies became fiat.

The Federal Reserve first issued its debt based paper money in 1913. Since then the US dollar has lost 95% of its value.

"The major monetary metal in history is silver, not gold." Milton Friedman, Nobel Laureate

In this author's opinion silver has a few unique twists:

Firstly as a much cheaper precious metal silver is winning market share from gold buyers. The higher gold prices go the more consumers will step down to silver, more so if they think silver's price will rise substantially.

Today the gold:silver ratio stands at 65:1

Gold $1224 oz/silver $18.56 oz  =  65

Historically the ratio has been 15:1

Since silver made its nominal high in 1984 the gold:silver ratio has held fairly steady at 45:1 - with the current ratio at 65:1 either gold will have to fall or silver will have to rise to $27.20 in order to get the numbers back in sync with  45:1.

To get back to the historical average ratio of 15:1 silver would have to rise to $81.60 an oz.

Silver, like gold, also performs its function as a precious metal - acting as a storehouse of value and a safe haven in times of turmoil - although, and herein might lie the opportunity, silver seems to have been asleep on the job what with the historical gold:silver ratio being so out of whack.

Gold does seem to be performing admirably and in this authors opinion does not seem set to significantly drop in price any time soon, the Dow on gold's terms:

• In 2000 gold made its $260 per ounce low

• January 2000 the Dow was 10,900

• 10,900 / $260 per ounce = 41.9 ounces to buy the Dow

• Today at 10,443 DJII and $1,224 gold it's 8.53 oz to buy the Dow

Secondly silver is an industrial metal/commodity which, unlike gold, is consumed, therefore giving you a call on an economic recovery.

"Silver is a unique metal that wins whether the economy is going well or is in bad shape. In the latter, the investor buys it as a hedge against the downturn in the economy and the markets. And if the economy improves, then the industrial demand increases." Chintan Parikh, CPM Group commodity analyst

The bottom line? Silver gives you a nice double play with prices expected to perform well no matter what the prevailing economic or geopolitical conditions.

Third silver does not have the threat of much publicized Central Bank and IMF sales constantly overhanging it - although silver does seem to trade in lockstep with gold when this old bogey man is trotted out to the herd.

CONCLUSION

In this authors opinion, it's not if, but rather when, the gold:silver ratio will revert to a more traditional number and share price upswings will trickle down to the very few junior silver producers, the soon to be producers, developers and explorers. It's for these reasons that silver and silver junior precious metal companies should be on every investor's radar screen.

Silver is above $19 -- Don't let this opportunity pass you by!

Dear friends,

Silver for the week was up $1.07, or 5.9%, way more than gold which was up less than 1%.

These are very bullish technical signs. Hold onto your silver rimmed hats!

Silver is a hard asset -- something you can bite your teeth onto. Compared to gold, silver is an amazing opportunity, and I believe we'll see silver above $20 very soon.

I never recommend putting all your investments into one basket!  So any investment in silver must be balanced with ALL other markets -- real estate, stocks, bonds, rare coins, cash, foreign investments, and other investments too.  But silver is a GREAT current opportunity.

Don't miss out!

All the best,

Al