Why Buy Silver? - Canadian Gold Silver

For over 100 years, silver has been demonetized — meaning, silver is no longer used as money, which reduces demand, which has reduced value, which makes it a perfect undervalued asset.

For over 66 years, since the end of WWII, silver has been consumed in industry, mostly in electronics, to the point that most of the silver ever mined in all of human history has been consumed. This reduction and consumption of supply has made silver more rare, and has created a potential natural monopoly for those who buy silver now.

The world mines just under 10 times as much silver, as gold, each year, suggesting a price ratio of 10:1, showing silver may perform 4 times better than gold, given the current price ratio of 41:1.

In sum, the silver market remains very tiny, for billionaires. World silver mine production is about 700 million oz., yet industrial consumption of silver in over 10,000 different applications continues to increase faster than mine supply.

World investment demand, which is a small portion of overall demand, has vastly increased, but remains a tiny 250 million oz., which, at $40/oz., is a relatively tiny $10 billion, tiny in the scale of world finance.

By the time even a tiny 1% of U.S. paper money tries to buy silver to protect itself from inflation, that would be $180 billion dollars (1% of $18 trillion), or 18 times as much investment money went into silver last year.

Finally, the silver price has risen enough so that a billionaire now actually can buy $1 billion in real, physical, silver bullion.

The Demand and Diversity of Silver

Although silver is relatively scarce, it is the most plentiful and least expensive of the precious metals. The largest silver producing countries are Mexico, Peru, the United States, Australia and Chile. Sources of silver include; silver mined directly, silver mined as a by-product of gold, copper, lead and zinc mining, and silver extracted from recycled materials, primarily used photographic materials. Today, silver bullion stocks make up a significant component of silver supply.

The demand for silver comes primarily from three areas; industrial uses, jewelry and silverware, and photography. These industries represent 95 percent of annual silver consumption. Silver’s superior properties make it a highly desirable industrial component. Silver’s artistic beauty and status make it one of the most romantic and sought after precious metals.

Diversity is silver’s primary asset. Its unique properties include beauty, strength, sensitivity to light, malleability and ductility, electrical and thermal conductivity, reflectivity and the ability to endure extreme temperature changes. These properties allow groundbreaking research to be conducted by scientists and engineers that effect the way we live.

Silver more than other precious metals, has significant demand rooted in sectors as diverse as imaging, electronics, jewelry, coinage, superconductivity and water purification. For this reason, silver is no longer known as just a precious metal, a store of value, a work of art or an industrial metal. It is all of these. Today silver is indispensable, working all around us to improve the quality of our lives.

Silver is truly an indispensable precious metal. It fulfills demand as both an investment asset and as an industrial metal. Silver is timeless, being recognized as a store of value from ancient civilizations through modern times. There are also a growing number of industrial uses for silver. It can be found in our smart phones, flat-screen televisions, and also find use in a variety of medical applications.

Silver Bullion Coins, Bars, and Rounds

The defining quality of silver bullion is that it is valued by its weight and purity. For investment purposes, silver is melted down to its purest form, then struck or cast into coins, rounds, bars, and ingots. The final product is then traded on the basis of its silver content.

Government Minted Silver Coins and Silver Bags

The most popular government minted silver bullion coins on the market today are the American Silver Eagle and the Canadian Silver Maple Leaf. As a trusted retailer for both, we offer these products at among the most competitive prices in the industry.

Silver Historical Background

Silver has attracted man’s fascination for many thousands of years. Ancient civilizations found silver deposits plentiful on or near the earth’s surface. Relics of these civilizations, include jewelry, religious artifacts, and food vessels formed from the durable, malleable metal. This metal took on near mystical qualities in marking important historical milestones throughout the ages, and served as a medium of exchange. The Mesopotamian merchants were doing just that as early as 700 BC.

In 1792, silver assumed a key role in the United States monetary system when Congress based the currency on the silver dollar, and its fixed relationship to gold. Silver was used for the nation’s coinage until its use was discontinued in 1965. The dawn of the 20th century marked an important economic function for silver, that of an industrial raw material.

Today, silver is sought as a valuable and practical industrial commodity, as well as an appealing investment precious metal. Many countries now issue silver bullion coins, among them the Unites States, Canada and Mexico. Private issue silver bullion is also available from select private mints.