This is my first post regarding my favourite topic so bear with me.

I make it no secret that I am bullish on silver. It has become something of an obsession and a hobby. However, the further I delve into the topic of commodities and precious metals, the more bullish I get.

Here’s some of the basics we need to know. Since the global market crash of 2008, the US Dept has gone one way, up, meaning the US has borrowed beyond the countries capabilities. As reported in the article by Kimberly Amadeo, as of 2013, government public debt had risen to a whooping $17 trillion dollars. The failed attempts by the Fed to apply a successful quantitative easing (QE) plan have done nothing but debase the current dollar with all BRICS economies now scrambling to cut the US dollar out completely. The following article by Ryan Villarreal is worth a read and does a good job highlighting a small part of this larger issue.

So what does this all mean, especially for precious metal investors? Well, it means that were not nuts or part of a loose conspiracy theory contingent. I’d rather we refer to ourselves as realists. We see through the corporate media and have decided to act in away to accordingly protect our assets from another likely crash. That’s where real money comes into it. You see with the paper dollar or fiat currencybacked by nothing but thin air there will soon come a time when the US dollar will be worthless, (you can thank PresidentNixon for this by the way), due to the actions of the BRICS economies moving away from the US market. This is where real money comes into it aka precious metals, in particular silver.

Ask yourself this. Why has China (the world largest gold producer) been hording millions of tons ofbullion whilst urging the general public to do the same? They can see a coming storm on the horizon. This scenario plays into the hands of silver quite nicely for two reasons. Firstly, whenever there is a crash or any turbulence in an economic cycle, what generally happens to a particular asset class like commodities? The price goes up. For over two thousand of years, bullion has been seen as a safe haven in troubled times and we saw the precious metals reach new heights at the peak of the GFC. However, it’s the second area which reinforces Silver as a massive long term opportunity for those with an eye on the price. Demand. Let me say that again. Demand.

Consumerism has fuelled economies for years and the BRICS are no better. With the rapid rise of a growing middle class with the thrust to mimic the lifestyles of the Western world, silver is in a prime position to skyrocket in value. Silver is used for everything from solar panels to electronic devices (this list could take up a whole new blog post) but the point is, with a rapidly growing macro consumer base, the demand for the metal will put it under huge pressure going long. The fact is, precious metals are a finite resource. Once it’s gone, that is it, it’s gone for good. So, if you are one of the lucky ones to hold onto the precious stuff, you’re in for a wild ride, but if you go long then the rewards will pay off and you’ll be the last one laughing.

In my next post, I will expand on demand further, but due to the size of such a topic, it’s probably best left until next time.

Until then,

Jason B