Silver.. What If?

We often talk of the effect of the relatively small (in the scheme of global financial assets) silver market should there be a broader market realisation of how undervalued it is (most recently here).  We’ve also reported in our Weekly Wrap the record breaking run of gold and silver into the ETF’s (GLD and SLV) as the market turns to these trusted safe havens this year. There is still the disproportionate quantity of the better known gold over silver, hence in part the still sky high GSR (gold silver ratio).  Silver analyst Ted Butler had this to say on Saturday:

“I must point out that nearly one billion dollars’ worth of gold was deposited into the GLD these past two day. If someone bought one billion dollars’ worth of silver instead of or in addition to what was purchased in GLD that would amount to more than 60 million ounces of silver. I won’t beat this to death, but please try to contemplate what would likely happen to the price of silver should anyone try to buy 60 million ounces in a day.”

Certainly food for thought…

What is also food for thought, and somewhat perplexing, is why people continue to buy gold and silver through an ETF (exchange traded fund) when you can own and HOLD your own physical metal so very easily and cost effectively.  An ETF is simply another financial ‘paper asset’  - a paper promise.  Physical gold and silver, hard assets, held by you have absolutely no counterparty risk.  For ultimate peace of mind, storing it in somewhere like Reserve Vault usually costs less than the associated ETF charges as well, but you and only you hold the key.  Click HERE to learn more about Reserve Vault.

Ainslie Bullion will deliver your purchase free of charge to Reserve Vault for you to put in your own safe there.  When you want to sell, you simply call us to pre arrange, locking in a price if you wish, attend to your safe and hand your metal to the staff at Reserve Vault.  We will then deposit the funds to your account or you can come to our nearby store and collect cash. Simple.