The Growing Use and Demand for Silver vs. The Shrinking Source and Supply of Silver

Put your thinking hat on for a few moments and consider this information...and keep it in reference between now and the November 2012 elections:

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According to the Silver Institute (http://www.silverinsitute.org/silver uses.php)

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"Demand for silver is built on three main pillars: Industrical and decorative uses, photograpy & silverware. Together, these three categories represent more than 95 percent of annual silver consumption. In 2007, 455.5 million ounces of silver were used for industrial applications, while over 128 million ounces of silver were committed to the photographic sector, 163.4 million ounces were consumed in the jewelry market, and 58.8 million onces were used in the silverware market.

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Why is this indispensible metal in such demand? The reasons are simple. Silver has a number of unique properties including its strength, malleability and ductility, its electrical and thermal conductivity, its sensitivity to and high reflectance of light and the ability to endure extreme temperature ranges. Silver's unique properties restrict its substitution in most applications. Chose from the following list to learn more about some of the various applications of silver:

• .Traditional

Coinage

Photography

Silver Jewelry

Silverware and Table Settings

• Industrial

Batteries

Bearings

Brazing and Soldering

Catalysts

Electronics

• .Emerging

Medical Applications

Mirrors & Coatings

Solar Energy

Water Purification" (end quote)

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Then, I might also add here that unlike gold, silver is rarely "recycled" back from its original use. This fact will remain true only until it becomes economically wise to "recycle" and "reclaim" silver from the same lists of uses as appear above (perhaps at the $25 to $50 per ounce level?). The point is: Gold is commonly "reclaimed" after its initial use, but silver currently is not. Silver is "used up" and must be replaced from underground mining and "above ground reserves," but mining production does not meet demand for this precious metal, and hasn't for approximately 20 years, and the "above ground reserves" have been and continue to be depleted faster than it can be replaced from mining resources and minor "reclamation" efforts.   Some experts even say that in the next nine years silver will be not only rarer than gold (as it already is today in terms of weight and volume) but perhaps even more valuable ounce-to-ounce.

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In closing, just let me say that (1) I DO NOT trust the federal government, (2) I DO NOT trust banks and (3) I DO NOT trust Wall Street...but I do trust the fact that there is a growing demand for silver as ever more nations (i.e.: China and India in particular) develop their own middle class and the resulting growing demand for modern appliances, electronics, etc., and since I cannot at all trust the Federal Reserve "fiat" paper money any more, and really cannot afford to buy much gold, silver is the natural "measure of value" I believe we folks trying to survive out here on "Main Street" should look to for a sustaining currency of measurable value, namely, Silver. And the least expensive silver available today is circulated U.S. (and Canadian) silver coins minted before 1965! Check it out further as www.ebay.com and reference u.s. silver coins

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By profession I am an Enrolled Agent. (licensed to represent taxpayers before the IRS) and.I've learned over the past three years' time things that force me to believe that there is a coming period of hyperinflation whereby the Federal Reserves' "fiat" paper money will become worthless and will make almost all investment vehicles connected to it also worthless. Many of my own tax clients are acquiring (some call it hoarding) "junk silver/circulated silver coins" as a kind of insurance against inflation and hyperinflation...I would be unethically remiss in not telling my clients and readers about it. I term my work in this situation "wealth retention ideas" and hope it will benefit all readers of this blog.

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At least food for thought, is it not?

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Respectfully submitted,

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Thomas Avery Blair, Enrolled Agent

1-888-250-5687 or e-mail: Tom@TomBlairEA.com