Sydney, Australia (PRWEB) March 22, 2013
When a woman in Mumbai was told she should invest in silver because it’d soon be worth more than gold, she didn’t immediately decide to start putting her money in bullion like most sane investors.
Instead she spent the next six years sneakily taking petty silver jewellery from various silver jewellery stores until she was caught earlier this month by a local storeowner.
When questioned by police, the woman identified as Rekha Vinayak Wamurkar immediately confessed and said she’d only been doing it to hedge her financial future after advice saying silver was the best investment from a friend.
All in all, Wamurkar managed to make away with over 18kg of silver in six years – a fairly hefty haul for a small time investor.
Roy Cohen, director of The Gold Company, says while the action itself was wrong, the advice itself shouldn’t be discounted.
“Silver has always been an excellent investment, and historically has performed well as a solid hedge of wealth”, he said. “While Wamurkar chose the path least honourable to achieve her investment goals, it goes to show how easy it is to use precious metals such as silver as part of your own finances!”
Industrial demand for silver has increased substantially over the past two decades and is expected to soar to a new record level in the coming year. As all manner of industries continues its wide-ranging use of silver, investors are also increasingly acquiring silver bullion, seeking the safety of the precious metal as a store of value.
“Whether it’s jewellery you have at home, or something more solid like silver bullion, choosing to invest in silver – legally, of course - is a smart choice for those who want to have their financial bets well hedged.”
While the future doesn’t look so bright for this magpie in Mumbai, The Gold Company knows that for Australian families, silver can help ensure a better future.
The Gold Company specializes in buying silver jewellery so families can realize the often-surprising financial results of their unwanted silver jewellery. Selling silver to capitalize on the great returns often available is a great way to find a financial solution right in a jewellery box.
Are we running out of silver?
The demand for silver is increasing.
Most silver is produced as a by product so supply is dependant on the demand and price of other metals and would only be increased substantially with a sufficient rise in the price of silver to mine silver economically as a primary product.
There used to be 10 billion ounces of silver stockpile (1950) this has been reduced to roughly 1 billion ounces today.
Annual Silver production (1 billion ounces) is roughly 10 times gold production annual industrial demand is roughly 900 million ounces. Investment demand is increasing substantially with a 53% in the period 2012 to 2014 compared to the period 1992-2001.
Investment demand has increased to the point where the same amount in dollars is going into silver as gold
at the current ratio of over 50 ounces of silver to 1 ounce of gold this is unsustainable and will quickly deplete what is left of the stockpile.
so the answer is whilst we are not running out of silver, in order for the market to balance one of three things need to happen. There would need to be a massive increase supply (not likely at these prices) or a decrease in demand or the price will need to increase substantially to reflect the supply and demand conditions.
Courtesy of Silverinstitute.org