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Story of Silver

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Stock Markets, Crude Oil and Silver

The Story of Silver and How It Preserves and Enhances Your Wealth

Silver Guru
Investor in silver for many years.

This is the story about Jack and his lump of silver.

Jack lived in a village that had a few shops. Both his parents were dead, and a kind silversmith took Jack into his home and taught him the trade. After working there for seven years, Jack felt the urge to go to the big city, and he asked the old silversmith if he could pay him for his services during the seven-year period. He wanted to take his small fortune and go to the big town and do what he wanted to do.
The old silversmith dug out the bits and pieces of silver from his backyard that he had accumulated over the years. These pieces he put into the furnace and melted it into a huge silver lump. When it was cool, he called Jack in and said, “Jack, here is your fortune. You can go to the big city now and trade it in for whatever you want. You should get a lot of money [wealth] for this big lump of silver.” (Adapted from “Jack and His Lump Of Silver”)

Did Jack make a fortune out of silver?

… … On his journey to strike his fortune, Jack had actually forgotten about his lump of silver. (Maybe he failed to recognize the true value of this fortune that he had!). While trying to get some water from a well to quench his thirst, the lump of silver dropped into a well… …

SILVER – The Highly Valued Precious Metal

Like Jack, many people (including myself several years ago before I researched deeper into silver as one form of investment) deemed silver as a second cousin of gold – the glamorous precious metal. In fact, silver was more highly valued than gold during periods in European and Chinese history. Silver was a form of real wealth. In those times, silver was THE real form of money and the real store of value, and it still is today! Simply put, silver (like gold) has all along been universally accepted as “money”, and its stable value overtime serves as a reliable store of value for people to buy goods that they want.

“ALL that GLITTER is SILVER” – Your KEY to AMASS WEALTH

The burst of the dot.com bubbles, the recent episodes of oil price spikes and the weakening of the once mighty US dollars prompted many investors to turn away from common asset classes like shares, bonds, warrants, properties to the long-overlooked and under-valued asset class of precious metals and natural resources for hedging of their portfolio (that means, to protect your portfolio to balance out the possible downsides of various asset classes). Between 2004 till now, many investors have been pouring tons of money into commodities and natural resources, in particular, gold and gold-related investment funds.

BUT wait!!!

Warren Buffet, the legendary figure of value investing and the world’s No. 2 richest person after Bill Gates, has the foresight of holding the real form of money, silver, as one of his key asset in his portfolio since the late 1990s when it was dirt cheap (at one-third price of today); while the masses crazed over the then all-time-favorite dot.com companies with over-promised earning yields!

THE GLITTERING METAL … WHY YOU MUST ALLOCATE SILVER IN YOUR PORTFOLIO AS PART OF YOUR WEALTH

o    During the oil crisis in the 70s when inflation surged, prices of commodities surged more than 1000%. Silver deemed as “the poor man’s gold”, outshone the other commodities with a whooping gain of more than 2500%!!!

o    For the past 20 years, silver prices have shot up by more than 3 times compared with gold which increased 2 times. Unlike gold, silver has many wide industrial applications like cell phones and TVs. With the two giant economic superpower houses, China and India, growing at an exponential rate, demand for silver is most likely to surge, causing the price to rise further.

o    Compared with the price of silver in the all-time high in 1980 (the period of second oil crisis) and today’s price (2006), silver is unbelievably cheap! Guess what, the price of silver today is only 1/8 that of 1980, measured in today’s dollars!

UNLOCK THE KEY TO SUPERCHARGE YOUR FINANCIAL JOURNEY

I love silver because it PRESERVES and ENHANCES my wealth. Silver has proven to always produce greater returns than gold in precious metals bull markets.

You can own silver too!

Many people thought that silver as an investment asset is for the rich and wealthy. Absolutely false! Silver IS affordable for most of us! One ounce of silver now hovers around US$12-14 compared to one ounce of gold at around US$650.

Silver is, therefore, one asset that all investors should include in their asset portfolios. Think about the huge upside potential in its price and returns!

Knowledge is power. ACT now!