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THIS is Why I’m Invested in Physical SILVER

by H Mandeel, SGT report

Contrary to many other investors, I did not invest in physical silver out of fear of an economic collapse or inflation or hyperinflation. I invested in silver purely based on the anticipated future supply shortage. To demonstrate my point, here is a chart on the total remaining silver years of supply based on current production rates.

As seen in the green graph chart, in the next 10 years Canada, China and Mexico would be running out of silver. This will remove 9000 tons (289 MILLION ounces) of annual supply from the market. That’s a whopping 40% decrease from current mine supply! And the chart assumes NO INCREASE IN DEMAND over the next 10 years.

How much each country produces:

The importance of orange chart is to show how much physical silver each country produces annually allowing the investor to estimate price shock in case of any export restrictions. For example, China could limit the export of silver as they have less than 10 years of supply – in fact China DID announce an immediate reduction in their physical silver exports by roughly 60% in 2010! Mexico has less than 10 years of supply and could stop exports or monetize silver. And Peru is has high political risk…