Visualizing Silver As An Investment

Tyler Durden's picture




 

Silver is like gold in many ways; both are precious metals with long histories as currencies. They are malleable, lustrous, ductile, resilient, and rare. However, as Visual Capitalist illustrates in this spectacular infographic, silver investors should be aware of the three main differences between silver and gold. From silver's relative volatility and correlation to industrial demand, track record, diversification benefits, and the three ways to get exposure to silver, this colossal image provides everything you need to know in one place.

Click image for massive (legible version).

 

Source: Visual Capitalist

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Sun, 01/20/2013 - 16:35 | 3171079 fonestar
fonestar's picture

"volatility"... as in terms of a broken and shifting unit of measure referred to as the Dollar.

Mon, 01/21/2013 - 09:40 | 3172410 thisandthat
thisandthat's picture

Global Warming

LOL <yawn>

Sun, 01/20/2013 - 15:27 | 3170925 DCFusor
DCFusor's picture

Waitaminute, NO counterparty risk?  Bull.  Someone has to have something you want and be willing to exchange it for silver.  That's called "counterparty risk".  What if there are no counterparites that have something you need who want silver?  Gonna use it to buy a blanket in the desert while dying of thirst because no one in the caravan you lucked into has any water they want to spare?

I hate that BS argument.  To my cat, it's just a shiny rock, no more special than any other.

Sun, 01/20/2013 - 17:49 | 3171207 MeelionDollerBogus
MeelionDollerBogus's picture

No, that's called TRANSACTION risk. COUNTER-PARTY risk is where you never hold the asset at all with which to buy because someone else holds it allegedly in your name.

Sun, 01/20/2013 - 17:32 | 3171174 fockewulf190
fockewulf190's picture

They will keep on manipulating the price...until they can´t.  In the meantime, I continue to ditch my fiat for as much phyzz as I can get my hands on.  Simple as that.

Sat, 01/19/2013 - 19:35 | 3169701 Mr. Fix
Mr. Fix's picture

With worldwide shortages, due to many years of downward price manipulation, silver is a bout to explode in value.

 You may think prices are stuck in a rut, but that is what the powers that be want you to think. In actuality, most silver that is above ground, has been removed from the market forever, and what little that is left, is quickly disappearing.

 It is literally now or never.

 You may now all return to your previously uninterrupted Saturday evening.

Sat, 01/19/2013 - 19:51 | 3169740 OutLookingIn
OutLookingIn's picture

EROI

There are VERY few exclusive silver mines.

Silver (the majority) is mined as a by-product of lead, zink, etc. mines.

Those silver mines that are exclusive, have experianced poorer and poorer ore grades, as the cost of extraction (energy/oil) has multiplied.

The industrial use of silver destroys it. No longer available for use.

The supply of silver (accessibility) is finite. When the EROI turns negetive for any particular mine - that mine will be shut down. Unless of course you have a revaluation of silver in the many hundreds of dollars.

But at that juncture, who will want to hold dollars?

Sun, 01/20/2013 - 07:53 | 3170348 francis_sawyer
francis_sawyer's picture

 "the cost of extraction (energy/oil) has multiplied."

~~~

You mean it costs $6 to dig it out of the ground now?

Sun, 01/20/2013 - 12:51 | 3170496 TheGardener
TheGardener's picture

As a by-product of copper mining and the like, you can
arguably claim it is only 5 dollars to dig it out of the
ground, because your allocation of production costs
is marginal and even if it were 50 bucks you could
charge 45 bucks management fees against it.

If your junior picks up some in the sandpit, your marginal production cost drops even further, already priced into your reproduction calculations...

Sun, 01/20/2013 - 15:29 | 3170931 DCFusor
DCFusor's picture

No, all the silver paint used to make conductive traces on my keyboards is still there, not destroyed in the least.  And some people even know how to get it out of old used ones, and do, me being one of them.

Sat, 01/19/2013 - 22:19 | 3169928 tallen
tallen's picture

The UK's equivalent of APMEX, bullionbypost is sold out of all silver greater than 100g. See

http://www.bullionbypost.co.uk/silver-bars/

 

 

Sun, 01/20/2013 - 09:19 | 3170416 Shigure
Shigure's picture

Yeah, and my local coin shop (UK) hasn't had any silver maples for weeks. Yesterday the only gold coin they had left was one 1/10 Kugerrand!

Sun, 01/20/2013 - 14:44 | 3170805 The Navigator
The Navigator's picture

Man, they really screw you with that VAT tax - 20% Tax????

Any black market going on there?

Sun, 01/20/2013 - 02:51 | 3170236 quasimodo
quasimodo's picture

"It is literally now or never."

 

How fucking long is THAT dead and stinking horse corpse going to be beat upon? If I had a dime...........

Sun, 01/20/2013 - 09:28 | 3170422 Room 101
Room 101's picture

The problem with end of the world prophecies is that sooner or later, one of them will prove to be correct.  The question then is the timeline.  The market for PMs at the retail level right now is oddly reminiscent of the one for ammo about 6 months ago.  Six months ago there were some shortages of popular products, the prices were not too horrible but increasing. And look at the ammo market now.  Ammo just isn't available in many instances and you have to wait in line and pay an extreme premium to get it where it is available.   

Sat, 01/19/2013 - 21:46 | 3169876 q99x2
q99x2's picture

Dude it is so scarce that Apple can't produce a bloody iPad and werewolves are making a comeback in Oregon and Missouri.

It is going for $8 over spot at big retailers. Since they manipulate the price with paper and the relationship between paper and physical has broken due to backwardation the sky is the limit.

Buy it while you still can.

Sun, 01/20/2013 - 00:05 | 3170102 otto skorzeny
otto skorzeny's picture

riddle me this-stock market drops precipitously-margin calls-dumping of metals to fulfill margin calls-metals drop in value-I'm sitting around with a shitload of FRNs(in hand) to buy the big dip and now I'm Goldfinger. I really see deflation as a problem before any kind of inflation.

Sun, 01/20/2013 - 13:42 | 3170656 Pinto Currency
Pinto Currency's picture

 

So you're saying unbacked digital credits that can be created without limit are going to be more valuable while items of limited supply will be less valuable.  I think that the decade long metals charts are showing this not to be true.

The digital price of metals can continue to be smashed-down, but ultimately there will be zero offers of metal.  These central planners are fighting the markets and it doesn't work.

Sun, 01/20/2013 - 17:46 | 3171200 MeelionDollerBogus
MeelionDollerBogus's picture

spy etf rolling chart forward - 2013 crash very soon

A market crash is NOT deflation. It's a market-crash.

Money isn't decreasing in supply & prices aren't going down so there's no deflation coming.

Sun, 01/20/2013 - 17:44 | 3171196 MeelionDollerBogus
MeelionDollerBogus's picture

That's not what this says:

http://comparesilverprices.com/

however that normally also isn't filled with X's showing no inventory and now it IS filled with those x's and that's NOT good news either for those still looking.

Sat, 01/19/2013 - 22:44 | 3169984 Snakeeyes
Snakeeyes's picture

Silver has beaten the pants off of gold recently. 

http://confoundedinterest.wordpress.com/2013/01/15/game-of-thrones-gold-...

Sun, 01/20/2013 - 10:20 | 3170462 world_debt_slave
world_debt_slave's picture

Squirrel away the nuts and don't have one.

Sat, 01/19/2013 - 19:24 | 3169686 PSEUDOLOGOI
PSEUDOLOGOI's picture

Silver Bitchez!!!

Sat, 01/19/2013 - 19:24 | 3169687 Motorhead
Motorhead's picture

Silver, bitchez!

Sun, 01/20/2013 - 01:42 | 3170193 The Shootist
The Shootist's picture

Tie goes to the runner.

 

Sun, 01/20/2013 - 07:56 | 3170351 francis_sawyer
francis_sawyer's picture

That's like kissing your sister...

Sun, 01/20/2013 - 10:09 | 3170453 Motorhead
Motorhead's picture

LOL, good catch!

Sat, 01/19/2013 - 19:27 | 3169689 Trimmed Hedge
Trimmed Hedge's picture

So when does it hit $50 again..?

Sat, 01/19/2013 - 19:37 | 3169706 Mr. Fix
Mr. Fix's picture

It will hit  $50 this spring, and probably $100 by years end.

 You could not possibly make a wiser investment right now.

Sat, 01/19/2013 - 19:41 | 3169716 in4mayshun
in4mayshun's picture

Famous last words

Not disagreeing, just sayin...

Sat, 01/19/2013 - 19:52 | 3169737 Mr. Fix
Mr. Fix's picture

The problem with the rise in the price of silver, is that it will probably be simultaneously timed with the collapse of Western society.

 As Silver is currently disappearing from the market, (and so is gold), when people realize that the dollar is in a full fledged collapse, it will be too late to diversify out of it.

 I am not looking forward to an explosive rise in the price of precious metals. But I am preparing for it. 

Sat, 01/19/2013 - 20:12 | 3169759 Al Huxley
Al Huxley's picture

It's relatively cheap, easy to buy, easy to store yourself in reasonable quantities. One way to approach it is to just buy a little every time the price gets knocked down, put it away and forget about it.  Worst case, your emulating the basic wealth preservation/hoarding strategy followed by the wealthy since the beginning of recorded history, and you'll have something to leave your kids or grandkids if you don't need it.  And if all the shortage theories turn out to be true, there's a nice upside potential.

Sat, 01/19/2013 - 21:16 | 3169831 Pinto Currency
Pinto Currency's picture

 

The physical is being snapped-up.

Silver physical for delivery market crisis brewing (but you will always be able to buy digital SLV literally without limit).

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/18_Greyerz_-_We_Are_Now_Seeing_Massive_Shortages_Of_Silver.html

Sat, 01/19/2013 - 22:13 | 3169925 bigkahuna
bigkahuna's picture

silver and copper looks tight.

Sun, 01/20/2013 - 08:00 | 3170356 francis_sawyer
francis_sawyer's picture

I think anyone who owns a lot of silver & doesn't have a stack of NICKLES as well [as well as, of course, beans & bullets] needs some 'Dorothy Boyd' in thir lives... 

Sat, 01/19/2013 - 20:53 | 3169799 espirit
espirit's picture

"...when people realize that the dollar is in a full fledged collapse..."

"...when people realize that the dollar is in full retard..."

There, fixed it.

Sun, 01/20/2013 - 17:39 | 3171189 MeelionDollerBogus
MeelionDollerBogus's picture

Indeed. Gold & silver are real money, they are not only inflation hedges but also disaster insurance. Once your insurance pays out therefore there IS disaster & that is NOT good.

Sun, 01/20/2013 - 00:31 | 3170132 Freddie
Freddie's picture

Warner Buffert and Charlie Mungo hate gold and silver. 

Sun, 01/20/2013 - 09:42 | 3170430 Room 101
Room 101's picture

A reason to stack if there ever was one.

Sat, 01/19/2013 - 19:45 | 3169727 A Lunatic
A Lunatic's picture

You would make more on firearms this year than silver........

Sat, 01/19/2013 - 20:09 | 3169752 NOTfromSanFrancisco
NOTfromSanFrancisco's picture

"You would make more on firearms this year than silver..."

And not only firearms, but magazines and certainly ammo. Shelves in retailers that normally sell ammo are extremely low with mostly the very expensive, high performance stuff left... Cheap as Dirt and other online retailers have long waits for ammo and magazines alike. Buy it all when you can find it. Good for you if you saw this handwriting on the wall for firearms and such... Good for you if you if you see the writing on the wall re the PMs.

Sat, 01/19/2013 - 20:15 | 3169762 A Lunatic
A Lunatic's picture

They are both necessary to the freedom of both this generation and the next.......if there is one.

Sat, 01/19/2013 - 20:56 | 3169803 espirit
espirit's picture

Got 2 boxes of Sierra Pro Hunter coming.  Probably the last of them I'll ever see at "normal" pricing.

Sat, 01/19/2013 - 19:50 | 3169735 Non Passaran
Non Passaran's picture

Wow...  Sounds too good to be true.

If it reaches $40/oz, I'd be satisfied.

Sat, 01/19/2013 - 20:53 | 3169798 XitSam
XitSam's picture

If it acts as a store of wealth for hard times, I'll be happy. Anything on top of that is dessert.

Sun, 01/20/2013 - 09:17 | 3170415 jvetter713
jvetter713's picture

Seeing as you already have to pay almost $40 are we not already there?  Remember, the price of something is not some arbitrary number printed on a ticker tape but the price at which someone is willing to pay.

Sat, 01/19/2013 - 22:25 | 3169945 koncaswatch
koncaswatch's picture

MR. Fix, just askin'

50/100 dollar nominal values based on scarcity; are these values currency debasement inclusive?

Sun, 01/20/2013 - 01:09 | 3170173 kito
kito's picture

you are out of your fargan mind if you think silver is hitting 100 by years end...no way no how.....no chance......

Sun, 01/20/2013 - 05:28 | 3170301 ThirdWorldDude
ThirdWorldDude's picture

Don't start with your contrarianism! It will cost you at least another turkey sandwich.

Just sayin'...

Sun, 01/20/2013 - 08:03 | 3170358 francis_sawyer
francis_sawyer's picture

Does 'catfood' come in turkey flavor?... I always wondered why there wasn't any MOUSE FLAVORED catfood...

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