SILVER... Most Accommodating Coinage!
THROUGHOUT HISTORY, many different things have been used as a form of money; such as stones, salt, shells and beads. From the very beginning, silver and gold have displaced all other mediums of exchange. The invention of the printing press brought with it paper currency. Nogovernment has ever successfully substituted paper for real money, because no government can "print" silver.
NORMALLY, silver prices are anticipatory rather than reactionary. Once the forces of the inflation index begin to be felt, savvy investors will buy into themarket to make sure they are in position ahead of the general public. Their buying will drive prices upward.
THE SUPPLY: New mining production is not stimulated by silver's price. Mining production is fairly fixed because over 70 percent of the silver producedis a by-product of copper, lead and zinc. Economists agree that silver consumption exceeds production, that the shortage is being supplied from privateabove-grounds hoards, and that the price of silver has risen dramatically as the result of it. Part of that shortage is made up from recycling jewelry, film and some electronic parts. The majority, however is supplied by a diminishing world supply of silver.
THE DEMAND: Silver has chemical and physical properties which are unique. It is the best conductor of heat, the most reflective of light and, next togold, the most resistant to corrosion. The Technological Revolution has transformed the metal of coin and art into a metal of electronics, photography, computers, aerospace and medicine! Silver is one of the most perfect conductors of electricity and therefore is considered an industrial metal besides a monetary metal. Since WWII, an average of 200 new uses for silver were found each year. If science and technology continue to progress, it isreasonable to assume that new uses will continue to be found.
SILVER AND INFLATION: Fifty years ago you could buy a loaf of bread for a dime. Today you still can... if it is the same silver dime. The real value of silver, like gold, hasn't changed. Only the currency changes, during periods of inflation, it takes more dollars to buy an ounce of silver as the dollar loses its value. It is said the price of silver goes up, but the value stays the same.
Silver is a store of value and therefore a protection against inflation. High interest rates tend to depress silver prices because the silver users (photo, electronic, jewelers, etc.) find it uneconomical to tie up money in inventories of silver, so they sell their stockpiles and drive the market down. However, inflation then becomes a self-correcting factor and it eventually adjusts itself. As we witness the deflationary collapse of traditional financial institutionson the one hand, the destruction of the dollar's value on the other hand, we are forced to find new avenues to put our capital for its preservation. We believe silver will be the subject of tremendous bidding for this purpose.
THE OUTLOOK for silver as a long term & short term investment is excellent. Silver prices must increase as silver users bid for the metal. For investorswho seek a long term hedge against the declining value of paper currency, as well as good profit potential, the ownership of silver is a must.
4 Bullions, Inc. is a primary broker/dealer trading with various international lenders and traders. Safety of your investment is assured, as your assets are insured and held in trust for you at one of our insured and secure depositories. All bullion is fully insured for the safety of our clients.