End of Cinderella
It is completely forgotten that silver have had a money function. In gold, however, we realize the role as a store of value and a defender of purchasing power.
Compared with gold the position of „Cinderella Silver“ till now is on a low level. And if you want to move the same value of silver than of gold physically, you have to move 50 or 60 times more volume – or even more – as a result of the low price nowadays.
In reality and compared to gold, our Cinderella silver is undervalued substantially. Its real value is much higher than the market price indicates today.
The production of silver only is 8.3 times higher than the production of gold. Nevertheless the price of gold is disproportionately more expensive. Pure silver normally you only can find near earth´s surface. The deeper you go in mining, the less is purity. Unlike the case of gold: In South Africa they are mining pure gold in a depth od 4,000 meters.
As a result of
- industrial demand
- increasing importance in the coming years
- and the finiteness of silver inside our earth
it is likely that a
Revaluation of Silver Investment
- The last 12 months before 2012 trading volume of silver was more than 120 times the mine production a of a year,
- turn of the year 2002 it only was less than 20 times.
If necessary, the COMEC may amend the articles of incorporation and order a cash settlement rather than physical delivery.
That already happened with the so-called „Maine Potato Contracts“ in the mid 70s.