Silver Is Undervalued, Widely Ignored & An Intriguing Investment - TDV Week In Review: November 9, 2014

Is silver undervalued, widely ignored, and intriguing? 

Are these prices levels the opportunity that precious metals investors have been waiting for? Is the time now?

For many so-called “silverbugs” the answer is “yes.”

SILVER PRICES ARE LOW

Predicting price movements is not a smart thing to do, because you’re probably going to be wrong. But there is a lot of data which can suggest overarching trends to help you decide your next course of action.

Silver right now is selling for less than 50% of its 2011 high of about $49. Yet, nobody is talking about silver. The devil’s metal does not get the media attention gold does. This might be a buying signal.

Prices for silver fell in the wake of the US election presumably on the assumption that Republicans would introduce more responsible fiscal policies. This assumption is flawed as Republican policies are not that much more “fiscally responsible” than Democrats. They don’t spend less. They just spend differently.

Fiat printing is the status quo for many nations, not just the US, as Japan recently announced their own QE, Europe debates their own, and generally many nation’s have embarked upon their own money printing policies.

Governments are printing more money than ever before, and there are no currencies in the world tied to gold or other standards than fiat.

Inflation has been an issue for decades in the US, and the phenomenon does not see to be slowing as inflation-adjusted prices have not adjusted to the new norm.

Production margins are very low in silver, as producers are reducing costs by cutting employees or even ceasing metal sales.

The silver price is at its lowest level since 2005 relative to the cost of production. These tightening margins spell an unsustainable situation and silver prices must increase or the entire silver mining industry faces bankruptcy.

Current levels of bullion held as exchange-traded products (ETPs) are very low. This is relevant as these investors have been net buyers since 2005 and have kept the metal off the market. Remaining amounts of inventory is 241 million ounces, only 25% of one year’s supply – whereas in 1990 it represented roughly eight times supply.

Falling silver prices has led global consumers to purchase silver coins and bars at a staggering rate as the metal has not been cheaper relative to gold in more than five years.

Retailers have claimed massive and increasing in buying interest in recent days as the metal slid towards its lowest since 2010 headed into this past weekend.

Silver had fallen to 4 and a half year lows by Wednesday. It had decreased 21 percent this year to that point.

“We have seen a significant uptake in demand for silver in recent days, both for coins and for 1,000 ounce bars,” Mark O’Byrne, research director of bullion dealer GoldCore, said.

“Silver Maples are being snapped up by U.S. and Asian buyers as the premiums are lower than for silver Eagles. Silver Philharmonics continue to be popular in Europe as they too are cheaper than Eagles, with a similar premium to Maples.”

With an ounce of gold now equaling 74 ounces of silver, the spread has not been higher since early 2009.

“Supply of silver from some mints has been delayed,” said Brian Lan, managing director of Singapore-based retailer GoldSilver Central.

The US Mint sold 1.4 million ounces of silver American Eagle coins on Friday. This marks the highest daily sales since the new 2014-dated coins were first available on January 13.

Due to the tremendous demand, the US Mint sold out of American Silver Eagles last week.

The announcement came in a statement to the biggest US coin wholesalers. The Mint will advise when inventory becomes available. The Mint has not made the announcement available to the public.

Buying silver bullion is a great way to diversify your current portfolio. It has historical precedent; it is money, and it is a better value than gold. Click here to learn more about buying gold and silver today. Also be sure to check out our report Getting Your Gold Out Of Dodge.

Justin O’Connell is the Chief Executive Officer of GoldSilverBitcoin.  He is also the author of the bitcoin book, Bitcoinomics, and administrator of the Bitcoinomics website. Justin is also a co-host at Our Very Own Special Show, a lifestyle podcast about music, news, life and other topics, and head researcher at The Dollar Vigilante.  He lives in San Diego, California.

Before we get to the review, be sure to check out the TDV Newsletter.  In the latest TDV Newsletter Redmond Weissenberger discussed some implications of the end of QE, while Chief Editor Jeff Berwick wrote about the volatility index and his recent success with it, and what he anticipates the future will bring and if this index is something he will continue to profit from. Jeff also writes on what he believes will come of the latest QE announcements from Japan and gold. Chief Analyst Ed Bugos discusses the gold market, the stock market and the third longest bear market in gold stock history. Justin O’Connell discusses some of the most popular alternative crypto-currencies and their uses, while TDV sits down with a man living in Puerto Rico to discuss life there on the fringe of Empire.  So check out The Newsletter today, and receive TDV’s special reports, including Getting Your Gold Out Of Dodge, as well as upcoming reports on expatriation and bitcoin. This is a true value and will help you learn and understand the times in which we currently live on the financial, economic, political, technological and personal fronts.  

If you’re interested in receiving articles beyond what you read here everyday, consider our weekly subscriber-only publications, like our Issue, Dispatches, and Homegrown. You may subscribe here.

On to the review…

Monday November 3

THINK YOU MISSED THE BITCOIN BOAT? YOU DIDN’T. IT HASN’T EVEN STARTED YET.

Jeff Berwick on Bitcoin.

I’ve been called crazy countless times in my life.  I was called crazy when I quit school in my teens in order to go out into the world to gain true knowledge and experience.  I was called crazy when I quit my “secure” job at a bank and started an internet company in 1994 (which went on to be worth $240 million at its peak).  I was (and still am) called crazy when I began to state forcibly in 2009 that we are nearing the very end of this monetary and financial system.

continue reading… 

Tuesday November 4

FATCA IS DESTROYING LIVES. AND IT’S GOING GLOBAL.

Jeff Berwick on Fatca.

Life is changing on Planet Earth thanks to little known legislation. Although much talked about in financial and banking circles, most of the world’s population is totally oblivious to it even if it might have major implications for their way of life.

It is the age of the Foreign Account Tax Compliance Act (FATCA). Foreign banks are forced to comply with crippling reporting requirements like never before. Serving US citizens would kill many bank’s business models so they are simply ceasing doing so. 

continue reading…

Wednesday November 4

DON’T CHOOSE AN OFFSHORE ADVISOR UNTIL YOU’VE READ THIS

Paul Seymour on choosing an offshore advisor.

As you search for an advisor to help you with internationalizing, a very real concern of yours should be, Is a potential “offshore advisor” really a flunky earning a high grade pay check from the US government? I, more than anyone, hate to sound alarmist, but those of you who have switched from the mainstream media to alternative sources such as us for your information, are certainly aware of the issues we face today.

continue reading…

Thursday November 5

NOTES ON LEAVING THE COUNTRY

Lukas Myers is leaving.

What I feared in 2007 when I began to awake to the political and social turmoil going on in the United States of America is now coming true, and in a more frightening way than I could have imagined. I remember telling a neighbor, “I think things are going to get really bad” but that was before the 2008 crash, the SAR’s, the bird flu, the ISIS, the Ebola…well pretty much any of those dreamt up crises that are needlessly infecting this country in fear. I knew a little about the 9/11 farce but was unaware of just how deeply ingrained the coup of the country was. I had a fear then. I have a concern now.

continue reading…

Friday November 6

ONE IN THREE CHILDREN ARE UNDER THE POVERTY LINE IN THIS DEVELOPED NATION.

Jeff Berwick on the USSA as a Third World Country.

I often call the US a “third world country”.  Of course, in some ways I am kidding as the original meaning of 1st, 2nd or 3rd world countries was the following:

After World War II the world split into two large geopolitical blocs and spheres of influence with contrary views on government and the politically correct society

continue reading…

TDV VIDEO

This week, Jeff interviews Mark Corske, Erik Vorhees, Charles Hampe and Angel Clark on the Anarchast.

Jeff is also interviewed by The Crypto Show and Angel Clark.

Have a look at our wide array of informative videos featuring interviews, opinions, and analysis on TDV’s media page.

TDV SERVICES

Don’t forget, TDV is much more than a newsletter.  We also offer many of the solutions to the problems we identify in the letter to help people internationalize their self and wealth to protect themselves from The End Of The Monetary System As We Know It (TEOTMSAWKI). Check out all our services designed to help you gain more freedom in your life here:

• TDV Passports

• TDV Offshore

• TDV Self-Directed IRAs

• TDV Wealth Management

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