These charts showed how governments around the globe have abandoned
silver as money. They've decided it's easier to expand a nation's
credit with fiat paper money than to mine more silver. They've sold off
their silver stockpiles to industry and investors.
This trend is decades in the making. At first, much of this silver
was used up in industrial manufacturing and processes like photography.
That silver is gone forever.
But starting around 1997, silver began flowing into private hands.
Folks concerned with wars, investment bubbles, and mismanaged economies
were buying it up. They turned to silver as a safe form of savings that
can't be debased by a gang of spend-happy politicians.
It was a modern day "silver rush." And buying silver back then was a smart move. The metal is up sixfold over the last 14 years... while stocks and real estate have struggled
to do anything... while paper currencies have depreciated in value.
The thing is, the silver rush is still on. I just recently updated those two charts. Take a look at where we are today...
The above chart shows how silver supplies are moving out of government reserves... and into the hands of private investors.
Below, you'll find another chart. It shows sales of the U.S. Mint's
popular Silver Eagle coins. Note the huge volume spikes on the
Demand for silver coins is taking off. It's up almost sevenfold
from the mid-1990s. The public is catching on to the value of silver,
and I expect this trend to continue for years.
Since my first essay
, the price of silver has soared more than 100% –
from $13.50 to about $29 today. But over the long term, there's much more to come.
Here's how I explained it in 2009:
Governments around the world are behaving absolutely stupidly
right now. Our vice president just said with a straight face that the
government has to spend more money in order to save the nation from
bankruptcy. That's crazy... but it passes for conventional wisdom these
In my 30 years of investing, I've never seen so many risks in
the financial system. That kind of "patriarchal thinking" is producing
The stupid thinking I saw in 2009 hasn't gone anywhere. Governments
across the globe are spending with abandon and creating big risks for
savers and investors.
That's why it's a good idea to keep a portion of your assets in
"chaos hedges" like gold and silver. You should know, I'm not the kind
of guy who lives in a concrete bunker. I don't think the world is about
to end. I'm not anyone's idea of a "gold bug." I buy this stuff just like I buy car insurance.
You should think of gold and silver as insurance against calamity. You should think of it as a safe store of wealth.
As I've just showed you, many people are catching onto this line of
thinking. I expect millions more will over the next few years...
Here's to our health, wealth, and a great retirement,