Silver Dollar Values Prices Climb, Uncover Tremendous Forces At Work Pushing Silver Over $100 - Gold

Dec. 31, 2012 - PRLog -- You will find great forces at work that will push silver over $100 an ounce. Very few valuable metal analysts comprehend all of the forces that are at work. Some analysts focus on particular areas like the gold-silver ratio and technical evaluation, while others write about future investment as well as industrial demand for silver. How high will silver go? Learn more >>  http://www.silverpricestoday.cc/KITCO-SILVER/

Nevertheless, one of the most significant elements of silver that most analysts are entirely unaware will be the availability (or lack of thereof) of future silver mine supply. I'm merely amazed how some analysts can forecast lower silver prices due to a so-called future supply glut that's supposedly coming in the next couple of years.

Based on GFMS, there was a silver deficit till 2003. Throughout this time of supposed deficits, the price of silver remained in the $4-$5 range. Nevertheless, once the deficits disappeared and also the surpluses started, the price of silver magically started to rise. The first year silver was no longer in a deficit (2004) it struck an average price of $6.67 an ounce. Then in 2005 it attained an average of $7.32, $11.54 in 2007, $13.38 in 2008, $14.98 in 2009 and so on and so forth.

Precious metal fanatics who're concerned about whether or not or not silver investment demand will stay powerful in the future... should not be. In the information I'm gathering, we're just starting to determine how big of a force silver investment demand will probably be in the upcoming years. One of the more notable gauges of elevated silver investment over the previous decade has been the expanding demand of official government coins. In 2002, total supply of official government coins and medals had been 31.6 million ounces. Nevertheless, by 2011 this grew to an astonishing 118.2 million ounces, a gain of 274% in just nine years. Rare Coins, Silver Coins, Gold Coins, Learn more >> http://www.silverpricestoday.cc/GOLD-COINS/

The 4 biggest selling official government coins would be the U.S. Silver Eagle, the Canadian Silver Maple, the Austrian Silver Philharmonic and Australian Silver Koala & Kookaburra. These 4 government mints produced 101 million silver ounces of coins & medals (majority had been coins), 85% of the world's total in 2011. Even though the sales of these official coins dropped off throughout the first part of year, powerful demand has returned in the second half. For instance, there was a 32% decline in Silver Eagle sales in the first six months of 2012 when 17.4 million had been sold compared to 22.3 million throughout the same period in 2011. Nevertheless, if we look at the charts we can see that 2012 Silver Eagle sales are now only down 18% compared to the same time last year.

There was also a comparable decline of Silver Maples in the first half of 2012. From January to June, sales of Silver Maples fell 32% compared to last year. Nevertheless, once the Royal Canadian Mint releases its third quarter report, we will more than likely see an increase of its Silver Maple sales in percentage terms compared the first half of 2012.

Another interesting trend taking place will be the amount of Silver Eagles sold compared to Gold Eagles. Compared to last year, Gold Eagle sales (-36%) are down twice as much in percentage terms than sales of Silver Eagles (-18%). Furthermore, the U.S. Mint has sold 53 times more Silver Eagles than Gold Eagles in 2012 (the ratio in 2011 was 40-1). Thus, retail investors have been purchasing 33% more Silver Eagles than Gold Eagles compared to the same period last year.

Even though the 4 countries listed above produce the lion's share of official government coin sales, there is another country that has big plans to change their ranking in the future. China: Big Plans For Future Silver Investment. China has been producing its one ounce Silver Pandas at a stable rate of 600,000 annually for nearly a decade. Nevertheless, last year China decided to increase its mintage of its 2011 Silver Panda from 600,000 to 6 million... and in 2012, they plan on increasing it to 8 million. Why the sudden 10 fold increase of their Chinese Silver Panda sales in one year? The main reason the mintage of these coins was elevated so much starting last year is that it became legal in 2011 for Chinese citizens to own silver coins.

The top 6 silver miners in the world have seen their average yield decline 34% in six years from 13 oz per ton in 2005 to only 8.6 oz/ton in 2011. As ore grades and yields decline, it takes more energy to produce the same or less silver. Metal analysts are forecasting continued growth of annual silver production for the next decade and beyond. To be able to grow silver metal production, the world will have to grow its liquid energy supply.

Once the world's liquid energy supply starts its inevitable decline from its current plateau, annual silver metal production will decline as well (or may follow soon thereafter). Metal analysts who're forecasting a glut of silver coming onto the market in the following years are also suffering in the inability to process information correctly. There will be no silver glut and there will be no silver available once the world's fiat monetary system finally dries up and blows away. Get ready because the forces for pushing silver over $100 have just begun. My advice is to buy silver today and stash it away safely. How high will silver go? Learn more >>  http://silverpricestoday.cc/KITCO-SILVER/