Buying physical silver or gold is easy these days. Unfortunately, finding more PM (precious metal) in the future will become increasingly difficult, but possible. I don’t have a crystal ball, what I do have is an ability to understand what motivates folks to seek monetary protection….. and what doesn’t. Silver, especially silver, is the metal to watch as more folks realize a rising DJIA and housing market is nothing more than a temporary spike spurred from piles of fiat currency. Use ounces of gold to determine true value and it’s obvious neither the DOW nor real estate should be viewed with optimism.
The coming age of second hand silver, or gold for big spenders, is smoke on the horizon. Record setting silver sales over the last couple months prove our world thirsts for tangibility in an age of digital promises. Please prepare to say goodbye to “on demand” physical silver or gold.
Today, the price for an ounce of physical silver adds a 10 -12% premiums (minimum) over spot or paper metal. A hunk of real tangible silver, aka money, sells for $32.50 an ounce as I click away this beautiful March 2013 morning. Even though greatly discounted compared to previous offerings, a silver buyer today can find a boatload of options . Buying second hand silver is not necessary, not yet.
Caliber 223 ammunition may offer a not so distant glimpse into silver’s future; just months ago, rounds of 223 ammo filled shelves all while reasonably priced – not cheap, but reasonable. Today sporting shelves collect dust where 223 rounds once rested. Oh, don’t get me wrong; 223 ammo is available but predominantly sells on the secondary market. Did I mention 223 ammo costs have tripled in 2013 alone?
This run on ammo is not by duress. I know of no city street’s burning, no riots, and no other out of the ordinary civil unrest here in the United States. The run on 223 ammo is on red alert because our liberties are under full assault. Caliber 223 ammo is nothing more than a 17th century pitchfork revolution.
This article’s primary focus is second hand silver, I don’t want to lose focus here. We can safely compare silver’s future demand on a monetary loss of liberty….that’s fair. But the point I truly want to make is how such an era of increasing silver demand will influence who and how we buy physical PM.
Some of today’s precious metal experts are misled, respectively. Silver sales will not cease when demand greatly outpaces output; there will always be someone holding silver who’s afraid it has peaked and therefor willing to take profit. Simultaneously, there will be buyers who believe silver will continue to climb…..no matter how many hundreds or thousands of dollars per ounce. The only difference in tomorrow’s silver world compared to todays is a SECOND HAND premium…..just like 223 ammo in a Obama second-term world.
Ammo prices in popular calibers have steadied. This means demand, price, and availability have found an equilibrium. But this lull provides a far greater indicator. It means ammo is to the point unaffordable for many, maybe most. Future physical silver wannabes will face the same fiscal fate.
We are reaching a point when everyone will “want” hard assets and sound money. But just like the 1000 rounds of 223 ammo for sale on gunbroker.com, only a few can justify or afford the second hand market.
QUESTION: Can you compare a currency like Bitcoins to silver or gold? Are they as good investment as precious metals?
TPS Reply: Thanks for sending over a couple of great questions. BTC is a virtual currency completely independent from a banking system or government. I’ve watched Bitcoins since March of 2011 with great interest. It amazes me how BTCs have appreciated when you consider this currency is nonexistent and attached to no commodity.
The creation of a currency….. like BTC, is only possible because of technology. The advancement of a currency like BTC is only possible when citizens revolt against the merger of government and banking to create a means of wealth preservation. No government can control a virtual currency, bitcoins have no physical corporate location.
What governments can do is tax profit and income. This is when and where competing currencies, like BTC, will conflict with an overreaching gov’t hellbent on more taxation. It is very possible a currency like BTC could be the precious metal of the virtual world, time will tell.
Now, to your questions; are BTCs a good investment? Below is a chart that goes beyond the need for explanation. Will such BTC appreciation continue? I have no idea but I do recommend using due diligence; no appreciating asset is reason alone to invest. If I were to buy BTC, here are the questions I’d ask beforehand.
1. What or who controls BTC output (creation)?
2. Is my BTC investment protected by way of discretion?
Below is a chart comparing Bitcoins to gold, not dollars – thanks to our friends over at www.pricedingold.
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DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. If you’re looking for trustworthy PM assistance feel free to contact DC regarding his personalized consulting service. TPS doesn’t sell silver or gold; we represent you, the buyer, looking for affordable precious metal from honest trustworthy sources. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.