Author Archives: Peter Black - admin

Incorrect Inflation and Gold – part 1

Conceptual image - percent growth

Conceptual image – percent growth

Inflation is often cited as a measurement closely linked to gold and silver. There are however some misconceptions as to what this relationship looks like and the dynamics of how it works. In this post we take a look at incorrect inflation and gold.

In economics the definition of inflation is the price increases on goods and services in an economy over a period of time. These prices can increase with different speeds depending on the velocity of money.

Every persons perception of inflation varies depending on what their life looks like and what habits they have. If you travel to work by car for longer distances and thus have high transportation costs or if you have a big family and have high food costs, then chances are that your perceived increase in costs will be higher than someone with another lifestyle.

Typically, inflation is measured through CPI (consumer price index). The CPI index is based on a basket of goods and measured annually. So, the CPI growth shows you what you need to spend to keep a constant standard of living through out of pocket expenses. A high inflation number means that things will cost more and vice versa.

Inflation is of importance to you because it will give you an indication on how much the costs of goods and services are increasing in an economy – thus showing you how much more money you need to spend or make. Ideally, you’d like for your own income to match the growth rate of inflation to maintain a real increase in your wealth or purchasing power.

Inflation is also important because it gives you an indication of how quickly your fiat money is loosing value – becoming diluted – or debased.

Gold is tied to inflation because it holds it value over the long term – in fact better than any other asset.

In his book The Golden Constant, Roy W. Jastram explains it likes this:

“Since the 14th century, gold’s purchasing power has maintained a broadly constant level. To put this in practical terms, an ounce of gold has repeatedly bought a mid-range outfit of clothing. This was true in the fourteenth century, when an ounce of gold was worth £1.25 to £1.33; it was true in the late 18th century and it remained true at the beginning of this century (2000 to 2008), when an ounce of gold averaged £269 or $472. Even the exchange rate between gold and commodities has been relatively constant over the centuries.

On the other hand, the US dollar that bought 14.5 loaves of bread in 1900 buys only 3/4 of a loaf today. While inflation and other forces have ravaged the value of the world’s currencies, gold has emerged with its capacity for wealth preservation firmly intact. Being no one’s liability, gold exhibits the same wealth preserving qualities in the face of financial turmoil, earning a reputation as a crisis hedge in addition to its credentials as an inflation hedge.”

So to summarize: gold is not a perfect intermediate inflation hedge but it does preserve value excellently over the long term, and excels during periods of hyper inflation.

The question is if we have any inflation to speak of at all today? That’s what we’re looking closer at in part 2 of this article.

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Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review

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Why Buy Platinum and Palladium – part 2

why-buy-platinum

We continue looking deeper at platinum and palladium in this follow up article on why buy platinum and palladium – part 2.

The worldwide demand for platinum jewelry rose in 2012, as a result of increased demand from India and China – predominantly a consequence of lower prices. Jewelry plays an important role for platinum as it stands for 30% of total demand.

Investment demand for platinum is also increasing. Although it only makes up 6% of total demand the number is growing – last year by 6.5%.

Lower platinum prices are now creating problems for miners – similar to the situation for many gold mining companies. Most platinum miners have a production cost that is above the current price of platinum. This is a serious problem for supply – one which will force prices higher eventually.

So the case for declining platinum supply is strong, whereas the demand side will continue to be stable or even grow going forward. These are both convincing reasons for rising platinum prices going forward.

When it comes to palladium the case is much the same as with platinum. In 2012 the production deficit was at its highest since 2001, totaling 915,000 ounces.

More specifically, the current demand and supply factors for palladium are:

Supply is dwindling. Russia is the second largest palladium producer in the world and their stockpile is close to depleted. Disruption factors such as strikes and power outages in the world’s largest producer of palladium, South Africa, is also causing supply issues. Recycling levels are furthermore falling.

The demand side for palladium is strong, especially that coming from the auto industry – where autocatalytic converters saw an increase by 7% in 2012. Palladium can actually be substituted for platinum when it comes to emission control systems for gas powered motors. These are favored in India and China. In China there has furthermore quite recently been a mandate for catalytic systems for all cars in the country, which should ensure continuous demand.

The investment demand for palladium is also growing. There is still not a wide spread use of palladium in jewelry but this could change quickly.

As is evident in the list of reasons above, platinum and palladium both have similar drivers. The supply disruptions have led to deficits in both metals. These deficits won’t be corrected overnight, as the metals can’t be produced at will. The current imbalances coupled with low interest rates and central bank stimulus point to higher platinum and palladium prices going forward.

This is the base case scenario. Should supply become extremely constrained due to major problems with production in South Africa, which very well could happen, prices could skyrocket.

If there are further corrections in gold and silver it would be a good opportunity to buy platinum and palladium as a supplement to your gold and silver bullion holdings. In any case though, both platinum and palladium offers some attractive potential today.

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Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review

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Why Buy Platinum and Palladium – part 1

platinum-mining

In a recent article we discussed the case for buying platinum today. In the coming two articles we’ll look deeper into this topic and also cover why palladium offers an almost equally attractive investment opportunity in today’s market. Read on below for why buy platinum and palladium today.

Platinum is both a precious metal and an industrial metal. So is palladium, albeit to a lesser degree a precious metal. In those ways platinum and palladium both are similar to silver. But there is a difference. Silver is more of a precious metal, whereas the main driver for platinum and palladium are industrial use.

Demand for platinum and palladium comes from a multitude of sources such as laboratory equipment, electrical contacts and electrodes, platinum resistance thermometers, dentistry equipment and jewelry. The largest demand source is the auto industry though, as platinum and palladium both are used in autocatalysts. Around 55% of platinum production and the lion share of palladium production were used in catalytic systems in 2012.

Since the auto industry plays such an important role in the demand for these metals one has to understand the drivers for the auto industry, to make an educated guess on the future demand factors and price drivers. The auto industry is sensitive to the general economic climate. If growth is positive then demand tends to follow and vice versa.

It’s easy to doubt the demand side as the economic climate and growth seems very fragile in many countries. To a large extent the growth is driven by money printing and artificially low interest rates in the world’s major economies. This ensures that there is a, if not growing, then at least stable demand for platinum and palladium for the time being. As we’ve discussed before money printing is not a sustainable growth factor though, so even though demand is important it’s not the sole answer to the positive drivers for these metals.

The real interesting factor is the supply side. South Africa is the world’s most important producer of platinum as it stands for 75% of annual production and 95% of known reserves – so what happens there can have a significant impact on supply. Between 2011 and 2012 global platinum production went from a surplus to a significant production deficit. The deficit in 2012 totaled 375,000 ounces.

So what are the main reasons for why maintaining current supply levels may become problematic going forward? Let’s look into the main factors for both platinum and palladium. We’ll start off with platinum.

There are ongoing issues with strikes and power outages in South Africa. Currently, there is major disagreement on worker compensation between unions and employers that are causing interruptions to production. Amplats, which is the world’s largest platinum miner is threatening to cut thousands of jobs and not follow through on establishing at least two new mines. Power outages continue to affect operations and have already forced the closure of some sites.  The end result of the unstable production conditions is reduced supply, and this is the prime reason for why platinum prices most likely will go up.

Recycling has been an important supply factor but with declining metals prices it has come down by an estimated 11% in 2012.

There is a continuous growth in demand for emission systems. Even though we’ve seen a decrease in demand from Europe and Japan, India together with China are ensuring an increase for emission systems and diesel emission control systems.  Auto-sales are furthermore rising in China and the U.S.

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Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review

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Cheapest Gold Bullion Prices

Cheapest Gold Bullion: A Lucrative Investment Asset

cheapest-gold-bullion-prices-bar

Finding cheapest gold bullion deals is one of the most lucrative investments you could make today. There are several reasons why you should buy gold today. Gold bullions have been considered as the purest asset. They provide intrinsic value to your investment portfolio and give immense return. They provide a stable future and protection against inflation.

Fiat currencies have a tendency to collapse when there are national emergencies, an economic crisis, or war. Having gold is a good way to survive during these events. Gold bullion can be used to trade for basic supplies when paper money has no value.

How to Buy Cheapest Gold Bullion

When looking for cheapest gold bullion, you need to know what your options are. One way is to go through Exchange Traded Funds, which is the most convenient and cheapest way to purchase gold bullion. On the downside, ETF exposes you to risks because the gold is not held by them but a global bank.

Buying physical gold bullion is more expensive, and you need to consider the costs of delivery, insurance and storage. You should also keep in mind that when you want to sell your gold in the future, you have to give the dealer a cut.

Types of Cheapest Gold Bullion to Buy

cheapest-gold-bullion-bars

When looking for gold bullion, you have a choice of nuggets, coins, or bars. Nuggets are beautiful, but price varies depending on the purity as well as other factors. It will take some time to know how to determine the value of gold nuggets.

Coins are more expensive compared to nuggets and bars. Some of the coins are rare collectibles, and this leads to higher prices. Investing in gold coins is a specialised market and should be avoided unless you really know what you are going to buy.

Gold bar is ideal if you are looking to buy cheapest gold bullion for long term investment. Gold is compact, and that’s why the size of a gold bar is smaller compared to silver. They are more portable, and you can easily store them.

How to Store Cheapest Gold Bullion

There are many ways to store your gold bullion. You can have a home safe installed by a local security company. Aside from the costs of the safe and installation, there are other expenses if you choose to go this path, such as increased home and contents insurance to cover the gold.

You can also opt to place your cheapest gold bullion stash in storage facilities. You can ask the dealer if they have storage options. You can also choose to use safety deposit boxes, but there are risks involved when using one offered by a bank. You can look for one that’s not connected to the banking system.

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Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review

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Cheapest Silver Bullion Prices

Now is the right time to buy silver bullion. It is greatly undervalued, and that’s why it is easy to find the cheapest silver bullion on the market. A lot of people today don’t have the confidence in money due to high inflation rates. Owning silver is an insurance against the loss of value due to inflation.

cheapest-silver-bullion-prices-bars

Silver has little relevance to most people today. Aside from the purchase of silver jewellery, consumers don’t have any use for the precious metal. This was not the case in the past when silver was used for everyday transaction. Even the US Constitution defined the dollar as a weight of silver.

One of the reasons why you should buy cheapest silver bullion is because it is inexpensive compared to gold. There is less silver above as well as below the ground and the law of supply and demand states that silver prices will go up in the near future. The industrial demand for silver has already increased the price into hundreds of dollars for every ounce.

Types of Cheapest Silver Bullion

When it comes to silver bullion, there are three common types that collectors and investors look for. These are silver bars, rounds and coins. Silver rounds and bars are perfect for investors because they come with lower premium and easy to store and stack. Silver coins are more expensive because they are considered as legal tender and have limited mintage. If you want to know more about the cheapest silver bullion then click through to a more comprehensive article.

cheapest-silver-bullion-bar

Silver Bars

Silver bars come in various sizes. They are easy to store because of their flat shape. They often come in increments of 1 ounce, 10 ounces, 1 kilogram, and 100 ounces. There are some bars that have odd sizes. They are appealing to investors because the larger the size, the lower the price.

Silver Rounds

Silver rounds look like coins, but they are not legal tender. They come with lower premiums as well. They come in increments of 1 ounce, half ounce, quarter ounce, or tenth ounce. There are some private mints that make larger silver rounds, such as 4 ounces, 6 ounces, and 8 ounces. Ordering silver rounds in bulk will give you the cheapest silver bullion deal per ounce.

Silver Coins

Silver coins are collectible items. They contain the same amount of silver in rounds and bars but have limited mintage, and that’s why they are more expensive. They are produced by a country’s mint instead of a private one.

How to Store Silver Bullion

cheapest-silver-bullion-coin

Now that you found the cheapest silver bullion deal, the next step is to determine how to store them. There are several ways of storing silver bullion. You can opt to keep it at home in a safe, or inside a secret cupboard or a false wall. You can also get a safety deposit box within a bank. The bank should be one that can weather a financial crisis. You can also go for a bullion dealer that will hold your stash in their vaults for a fee.

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Liberty Silver Estonia

Estonia

Liberty Silver Estonia is partly owned by the people behind Sweden’s biggest bullion distributor; Liberty Silver Sweden. Highly reliable service. Buy UK silver VAT free and arrange for shipping directly to your home.

To place an order click here: https://www.libertysilver.ee/en/

BullionStar.com Singapore

Singapore

Bullionstar is owned by the people behind Sweden’s biggest bullion distributor; Liberty Silver Sweden as well as Liberty Silver Estonia. Highly reliable service with the possibility of local storage in Singapore – perfect for your international diversification needs. Buy VAT free UK silver.

To place an order click here: https://www.bullionstar.com/

Get 2 years of free local, high-secure, storage in Singapore with BullionStar.com

Want to know what silver bullion to buy from BullionStar? Click here for more information: what silver bullion to buy

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How to Save in Gold and Silver

save-gold-silver

The reasons behind owning gold, silver, platinum and palladium should be well known to you by now, if you’ve read a few of our articles.

Parts of these reasons are historical, and timeless, such as gold and silver being the ultimate stores of wealth and purchasing power. Others are more current, such as the coming ramifications of central bank actions.

Keeping interest rates low by conjuring money out of thin air is not sustainable. Eventually, the excess pools of cash will leave bonds and treasuries and float out into the real world, resulting in significantly increased inflation rates. When this does happen, precious metals will see parabolic rises.

This may also be the time when the exchange prices for gold and silver finally diverge from physical prices. As we’ve noted before, there is a clear discrepancy between the demand for physical gold and silver bullion, and demand for paper gold and silver.

With the case for gold and silver still intact, what are the options for buyers?

There is always the possibility of buying silver bars, gold bars, silver coins and gold coins. All of these are good options, but for some buyers it won’t tick all of the boxes – because of convenience and risk reduction reasons.

With BullionStar.com you can utilize a gold and silver bar accumulation plan, by buying by the gram, incrementally increasing your holdings over a period of time – basically, save in gold and silver.

So why can an incremental, gold and silver savings plan be an attractive option?

First of all, it is very practical and convenient. Not all investors have the possibility of buying silver bars and gold bars, since the cost typically is high for these assets. Especially, when it comes to gold. By accumulating, or saving for, a full gold bar by the gram you don’t have to pay the full price all at once. This has many benefits which you shortly will see.

It also reduces your risk to use a gold and silver savings plan. By not putting the full amount of your ready capital at work all at once you are mitigating the price risk that you are taking, and “averaging into” your investment. Gold and silver prices have moved a lot lately and it’s difficult to time the market for any investor. Even professionals. A savings plan will easier allow you to, over time, get the most ounces for your fiat money.

It’s also prudent to buy gold and silver gradually since you reduce the risk you are taking when it comes to premiums. Whenever the market gets volatile, which it usually does when it drops, premiums will spike, making purchasing gold and silver bullion more expensive – at a time when you really would be interested in buying. You will therefore not necessarily pay a lower price just because the market has fallen. Utilizing a gold and silver accumulation plan will allow you to continuously buy into bullion, not having to worry about timing.

It’s furthermore, generally more cost effective to buy silver bars and gold bars, than buying coins individually.

There are other benefits with using BullionStar.com gold and silver savings plan such as the fact that once you’ve accumulated a full bar you will have 100% physical ownership, with the bar registration number in you own account.

You will also have fully insured and secure storage in Singapore. This means that you don’t have to worry about keeping your silver bars or gold bars at home, risking burglary, or at the bank. The bank may seem like a good place to keep you precious metals but they won’t be insured and, in a time of crisis similar to what we saw in Cyprus or during the 2008 financial crisis, gaining access to your holdings quickly may prove difficult.

Finally, should you wish to do so you are both able to take delivery of your gold and silver bars as well as deposit your own gold and silver bars. You always have 24/7 online access to your BullionStar.com storage account.

To find the cheapest silver bullion you should look at purchasing from for example Estonia where silver bullion is VAT free.

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Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review

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Cheapest Silver Bullion Price

cheapest-silver-bullion-price-online

While silver offers generous returns on investment, you can stand to make more money if you can manage to buy the cheapest silver bullion.

You can buy silver in many forms. There is material silver which you can actually purchase and physically possess. Then there is the derivative form where you don’t actually own tangible silver but the monetary equivalent of the silver. Both are quite common ways to approach investing in silver but you should choose what suits you best. For instance, some people like the derivative form because there is no risk of buying silver that doesn’t meet a certain desirable standard and not knowing that you are being taken on a ride. However, there are many who deal with reputed dealers and have no problems in establishing trust and ensuring that the quality of the silver bought is beyond question. Such purchases usually involve silver bullion. It also makes sense traditionally to own bullion, bars or ingots when you purchase them. One can easily keep them safe in a bank vault or at home if one so desires.

In its physical form, you can buy silver as ingots or bullion, as coins or bars and as jewelry. Ingots, bars, coins or bullion are the best form of investment as the silver is not processed or mixed with any other metal. Silver jewelry is not ideal for investment as the making and tweaking of the metal to be crafted as jewelry takes away a lot of its return value on investment.

There are various types of silver bullion that you can purchase. There is the American Eagle, Australian Kangaroo, Australian Koala, Chinese Panda, Mexican Libertad, Britannia, Canadian Maple Leaf, Silver Dollars, Rounds, Bars and Engelhard among others. For further information about the cheapest silver bullion, you should check out my detailed post.

Silver, like other semiprecious and precious metals, is a great mode of investment. Putting in money, buying and holding on to your share of silver can offer exponential returns if the holding period is several years. Even in the short term you can invest in the cheapest silver bullion and make considerable profits.

Now, where you can find the cheapest silver bullion has a very simple answer. You can buy tax free silver via Estonia. When you don’t have to pay VAT, you are comfortably getting the cheapest silver bullion.

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Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review

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Why Buy Silver Today

silver-bullion-bars-coins

If you wonder why buy silver today than look no further. This article gives you a brief overview of the reasons for buying silver today.

The reasons for owning silver are much the same as the reasons for why you should own gold. There are historical reasons, such as wealth preservation and protecting purchasing power, and there are more current reasons such as heavy central bank stimulus and currency debasement.

Silver does offer some different characteristics to gold though. More specifically, silver is an industrial metal, it’s historically trading at a “cheap” ratio relative to gold and silver offers more potential for price movement (ie volatility). The latter can work both to your advantage and disadvantage.

Let’s start with some of the general reasons for owning silver today and then look closer at the differences between gold and silver.

Similarly to gold, silver offers you a way of protecting yourself from the consequences of the significant increase in money supply launched by central banks – the monetary carelessness. The consequences of this excess liquidity are increased asset prices and debasement of the purchasing power of your fiat currency. The annual increase of silver production is far less than the fourfold increase in the monetary base we’ve seen in the U.S. in just the last 10 years. Silver is therefore naturally going to be more scarce and preserve it’s value better.

Real interest rates are negative in many countries. This is positive because it lowers the opportunity cost of holding physical silver.

Silver is a crisis hedge. If we see additional turmoil in the markets it’s safe to assume that silver will perform strongly, similar to what it has in the past, such as during the 2008 financial crisis.

End of the debt era. Silver offers a way of preserving wealth and purchasing power at a time when most countries have debt-to-GDP ratios above 90%. A level which usually is seen as a point of no return. For most countries, the only way out of this situation is by means that eventually drives up inflation. Silver works well as a hedge against high inflation.

Apart from the above-mentioned reasons, silver offers some very interesting potential today.

The so-called “gold silver ratio” is part of the explanation. The ratio is defined as the price of gold divided by the price of silver.  Since 1687 the ratio has been between 14.4 and 99.76. Over this period the average gold to silver ratio was 27.28. Today the ratio is 61. Given the general fundamentals for precious metals let’s assume that gold isn’t overvalued. That means that silver still have room to rise in relation to the historical gold silver ratio average of 27.28.

Silver is also used for industrial purposes. It has unique properties including strength, malleability and ductility, electrical and thermal conductivity, sensitivity to and high reflectance of light and the ability to endure extreme temperature ranges. Silver is for example used in solar panels, cell phones, water purification, cars etc.

Silver offers more potential than gold. Silver is generally considered as being more volatile than gold. This can be both negative and positive depending on how prices move. In today’s environment, with strong fundamentals for all precious metals, silver is especially interesting.

So should you choose to buy silver or to buy gold? Just like with any sensible investment portfolio you need to ensure that you have proper diversification, so make sure you own a bit of both. For silver specifically, finding the cheapest silver bullion prices has to do with which location you purchase your silver bullion from – Estonia and Singapore being two VAT/tax free locations.

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Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review

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Top 12 Reasons For Buying Silver Bullion – part 2

Here is the second part in a two part article on the reasons for buying silver bullion.

We continue with our list of the top 12 reasons for buying silver bullion today.

Here are the final 6 reasons.

7. Industrial metal

Silver is an industrial metal which ensures an additional demand component to gold. Silver has hundreds of industrial and medical applications – as the best conductor of electricity it’s used in switches, medicine, batteries, plastics solar cells, water purification, computers, cars etc. There is furthermore a continuous growth in the applications for silver.

8. Silver is cheaper than gold – the “common man’s” gold

Silver is cheaper than gold and is often referred to as the common man’s gold. Even if the price of gold recently has fallen just below $1400, it’s still considered as being too expensive for many. Silver on the other hand currently has a price in the $22.30’s area, which makes it much more affordable.

9. Silver is still not well known as an investment

Silver, similar to gold, is still not a mainstream investment. For most people, owning silver in paper form is uncommon, not to mentioned actually buying physical silver bullion. Securities such as bonds and stocks are the dominating asset classes for the majority of investors. When it comes to physical gold and silver we are instead flooded with advertisements to sell them at cheap prices. Once this trend is reversed it will add a strong catalyst for rising silver prices.

10. Silver has more price potential than gold

Silver prices are more volatile than gold prices in general, which can work to both your advantage and disadvantage in the short term. The silver price has increased with approximately 19% per annum since 2002 – gold by 15% per annum. If you buy silver bullion today, with the drivers for all precious metals being so strong, silver can offer you a very attractive potential, and “pick-up” to gold, over the coming years.

11. Silver is undervalued compared to gold

One ounce of gold currently buys 61 ounces of silver. Over the years this ratio has varied a lot. Since 1687 it’s been between 14.4 and 99.76. During this period the average gold to silver ratio was 27.28. In 2011, when silver peaked just below 50 the ratio was at its lowest since 1983, at a level of 32. This means that silver in relation to gold was at its priciest point for 30 years.

Since the beginning of the 1990s silver has been on a rise versus gold, thereby decreasing the ratio, so the overall trend is that silver is appreciating versus gold. If silver was to return to it’s historical average, with a ratio of between 17:1 and 27.28:1, the silver price would be between $50-$81 (given a gold price per ounce of $1379). That leaves room for a significant price increase from the current level.

12. Significant risk in silver paper market

The explosion of silver (and gold) ETF’s over the recent years have made precious metals much more accessible for investors. The characteristics of these instruments should not be confused with the characteristics that define physical silver bullion though. The “paper instruments” have an inherent risk as they rarely have actual ownership of all the metals in their exposure. They don’t provide full allocation and would thus, in a real time of crisis, not provide the same level of security and insurance as physical bullion would. “Paper silver” is more suited for speculation. Buying silver bullion on the other hand provides one of the best crisis hedges that one can own.

If you are looking at buying silver bullion then choosing a location where silver bullion can be purchased free of VAT will ensure that you get the cheapest silver bullion. Two premier locations and distributors are outlined below.

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Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review

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Top 12 Reasons For Buying Silver Bullion – part 1

Here is the first part in a two part article on the reasons for buying silver bullion.

Buying gold bullion is usually the first step for many people when they venture outside of the “paper” market, or the exchange traded market, for precious metals. There are, however, very compelling reasons for buying silver bullion apart from gold bullion. Silver offers the same characteristics as gold but there are additional drivers for silver, which makes it especially interesting to buy and hold today.

In the coming two blog posts we’ll take a look at the top 12 reasons for buying silver bullion. Here are the first 6.

1. Real money and store of wealth

Silver has been used as money throughout history. Even though other assets have been used for shorter periods silver, together with gold, have stood the test of time and proven to be the best forms of money. Silver protects wealth and purchasing power over the long run.

2. Crisis hedge and insurance policy

Silver offers a way for you to insulate yourself against the recklessness of central bankers, politicians and unknown future events. As the saying goes, history may not repeat itself but it sure rhymes.  Calm periods in history have often been followed by turmoil. You should view your silver bullion holdings as an insurance policy. Even though some events may be improbable you will benefit greatly, not only in terms of wealth protection but also wealth accumulation, if a crisis such as, or worse, than the 2008 financial crisis should hit.

3. Debt and deficits

We are in the later stages of a 40+ year debt era where we’ve been able to spend, what’s felt like, freely through the accumulation of both private and national debt. Most western and developed countries now have debt-to-GDP ratios that by far exceed levels that ever have been repaid historically. The U.S. has for example in a relatively short period of time gone from a net lender to the largest debtor in the history of the world. The only way out of this will be through debt monetization which causes inflation – which in turn translating into invisible wealth destruction for most individuals. Silver will holds its value better than any fiat currency.

4. Money printing – fiscal stimulus

The central banks of the world are on a printing spree of historic proportions. In the U.S. QE3, which follows over $2 trillion of previous stimulus programs, adds another $85 billion per month in stimulus efforts, through bond purchases. Japan has recently launched an unprecedented $1.4 trillion 2-year stimulus package and very recently the Bank of Japan affirmed their plan to double the monetary base. The U.S. and Japan aren’t the only ones. They’re happily joined by the ECB in Europe, China, South Korea and a host of other countries. So how is this positive for silver bullion? As fiat currencies become increasingly “diluted” and debased silver, which can’t be manufactured out of thin air, will rise in value.

5. Growing demand for silver

There is an increasing demand for silver from many countries, typically those that have a strong cultural relation to precious metals, like India, or in countries where ownership of silver is actively encouraged, like in China. As the demand for silver becomes more mainstream, supply will quickly dwindle.

6. Limited current supply and uncertain future supply

There is a limited amount of new silver produced, which is evident in the current market conditions where supplies of silver bullion often are sold out. In addition, over 50% of annual silver production is used for industrial purposes and an increasing amount of the total above ground supply is diminishing as applications in a broad range of fields continue to grow.

The future supply of silver is uncertain as mining often is done in politically and environmentally fragile locations with less developed infrastructure.

To buy the cheapest silver bullion you should look at the two bullion dealers linked to below.

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Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review

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