You’ve seen the infographics on total US debt, the TARP bailout, and the TBTF banks’ derivative holdings, but until now you’ve never seen an infographic detailing in vivid detail exactly why the world is running out of silver.

The infographic details silver’s supply/demand fundamentals propelling the metal to nearly 700% returns since 2000, and looks at whats to come on the PHYSICAL supply/demand over the next decade.
Is Silver the New Gold?

From Michael MacDonald, author of The Silver Bomb:

  1. I get it. But where will you sell your silver when you need or have to and not face a premium on top of the premium you paid to buy it? Is there a law regulating premiums the dealers charge to buy or sell? They pay a wholesale price that has varied.

    The real price of silver must include the premiums dealers charge to buy from them or sell to them.

    Until there is changes in the market that expands past pawn shops and a few coin shops or bullion dealers, the market is rigged against stackers? 

    All dealers make money buying and selling silver. Would it not be nice if the sheeple could too? 

    • “…the market is rigged against stackers?”

      There’s a big difference between a trader and a stacker. Traders should investigate paper silver with little to no premium. Stackers don’t have a plan to sell. They may buy property, food, fuel, etc with their stack one day, but no true stacker would trade their silver for fiat dollars because the price went up.

      I bought a large amount of silver Canadian Maples on June 28, 2012 delivered to me for a grand total of $28.59/oz, and could’ve sold it this week for a very handsome profit of $6/oz, but again, no true stacker would trade their silver for fiat dollars because the price went up. We are not traders.

    • “But where will you sell your silver when you need or have to and not face a premium on top of the premium you paid to buy it?”

      This is really a very small problem.  Do you think that anyone who bought gold at $50 an oz. is concerned about the premium they paid or the cost to sell their gold today?  No,not really.  It’s just a cost of doing business.  Add in the loss in purchasing power of the US dollar and you can see that holding gold and silver are WAY better than holding dollars and other paper assets.  

      The US dollar is in a downward death spiral as we speak.  There are many things that are contributing to the dollar’s demise and very few things holding it up now.  This is a long-term trend that will continue no matter who is in the White House.  The die is cast and these financial events WILL play out.  The only question we need to answer is, “What kind of money do you wish to hold – fake fiat money or REAL money?”.  Knowing that gold and silver have been used successfully as money for more than 4,000 years and that fiat paper currencies ALWAYS crash and die makes this decision easier.

    • You can sell them on Ebay if you want to gain a lot of dollars out of your silvers. Or if you don’t like Ebay because of the shipping and the scams, then you should try Craigslist where you will be able to meet your dealer in person so that this way, you will avoid shipping and scams.

  2. Yes, dealers must charge a premium over wholesale in order to stay in business, and will not usually pay you the same premium when you sell back to them. This difference in price is sometimes called the spread, and at a good dealer the spread will be 12% or less. It is no different than if you are buying and selling used cars, jewelry, or anything else of value.

    While I echo the sentiments written here that a true stacker would never sell their silver, the truth is that there is money to be made in trading silver- thus a stacker can become a true ‘dealer’, if they know what they are doing, and have sufficient financial resources. After all, we could all use a little extra income, right?

    EBay is a great place to start, but there are many other venues to try- you could simply run an ad in the local newspaper advertising silver for sale, I guarantee that you’ll get a response. Trading silver for a profit is not always easy, especially in a stagnant market like we are currently experiencing, but that is what separates the boys from the men, so to speak.

    You need good business skills to be a successful coin trader, just like any other venture. When buying or selling silver, your profit margins in general are going to be much, much less than almost any other commodity or good, but the flip side of the coin is increased liquidity, and a proven track record over centuries and centuries of silver being a high-demand product. You might not make a lot of money, but it’d certainly be hard to lose much money either.

    My advice to those who wish to become coin traders is to familiarize yourself as much as possible with the U.S. Postal service, as they will be your best friend when it comes to shipping bullion either domestically or internationally. Be sure to insure any packages worth $100 or more, and utilize to the greatest extent possible the free shipping supplies offered by USPS. A good dealer can ship a 1 oz. silver coin across the country for only $1.64 via 1st class mail, while most casual sellers on eBay will end up spending a lot more. This is where you’ll make (or lose) most of your profit margins. Also, keep records and receipts for everything- come tax time, the IRS will come calling if you sell very much. Good luck!

    • This is a great reply. Thank you. I think the more broader the marketplace is, the more difficult it would be to try any shenanigans against honest Americans trying to avoid their squeeze play, er ah, bovine sewage. I sell warm glass off a web site. My retail license is good for silver coins as well. I will get busy. BTW, I use to sell on Ebay….found it better to get my own merchants account, a web hosting company, a product, and get on Google. With social media it should be easier for newcomers. Back in the day, you were hard pressed to get the message out if you were buried on page 9 on the search engines.

      Also, no selling in my home state, no sales taxes collected. I am an LLC too.

      The best medicine is for state retirement systems to buy bullion. Their biggest gripe is storage. Solve this for them, and they could start buying up the market. 

    • Thanks for paying attention. I think the legend on the last box is supposed to read “100 million ounces”, not “1 million ounces”. However, it still totally contradicts the data shown in the box above. 1 billion+ ounces or 487 million- which is it?!

    • I think you’ll find that the 666million ounces is referring to only industrial demand by 2015 meaning that there will only be 100million ounces a year left for investment demand assuming that silver mining output hasn’t declined by then.

  3. Breaking News:
    For an amazing story about a recent court ruling that involves the definition of Constitutional money, including the definition of the Dollar as 371.25 grains of pure silver, read the editorial on the NY Sun dated 8 Oct 2012 entitled:
    “Is Legal Tender Next?”
    In essence, the plaintiff judges are saying that they are being cheated on their pay because, while their salaries in Dollar terms are not being reduced, the real value (purchasing power) of their salaries is decreasing due to currency debasement.  And a reduction in pay of judges is something prohibited by the Constitution.  The plaintiff judges have won the case.  In effect, $100,000 in the year 2012 does not buy the same amount of stuff as the same $100,000 in the year 2000.  Therefore, there is really a reduction in pay even though the Dollar amount stays the same.  This is exactly the kind of stealing that the Fed is doing by printing excess paper Dollars out of thin air day after day.
    If the US reverts back to allowing contracts between parties to be written for payment in silver and gold, instead of paper Dollars, there will be nothing to stop the collapse of fiat paper ‘money’ at that point.

    • Too bad that the majority of the people don’t know about the Constitution’s laws. If everyone knew about it, then fiat currencies would of collapsed and we would be using sound money. Also, you don’t learn at school the laws about the Constitution.

  4. You should realize that before, it was humans and animals’ labors that were used to dig silver up so it was more harder and cost more. Now, we have technologies and liquid energies which made easier to mine silver but, we are running out of liquid energies.

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