As seen within the historical mineral statistics link:
Apparent consumption data represent the total quantity of silver that was consumed for industrial, art, and coinage purposes.
The price for 2008 was $528,700 per metric ton. That works out to $16.44 per troy ounce. Today's price is $26.04. That's a 58% increase in the last 2 years.
If you think the world (China in particular) can continue to afford silver at $26.04 per troy ounce then by all means keep buying silver. You might want to look at what silver consumption looked like during our Great Depression and its decline during the 1970s before deciding entirely though.
Just a thought.
Source Data:
USGS: Historical Mineral Statistics
Kitco: Silver Price
Census: Historical US Population
St. Louis Fed: Population
This post was inspired by Pentium_Six from the Yahoo message board.
ReplyDelete*** Why Silver will hit $5000.00/oz within 5 yrs ? ***
When all the silver is depleted .. one ounce of silver coin can buy you a Car
8 people think his "strong buy" post was worth a "good" rating.
I should add that he posted yesterday. SLV was down 5.87% today. There's 4.997 years remaining on his prediction.
ReplyDeleteMr. Mark -
ReplyDeleteCould you add the "mining" tag to this post? It's not technically mining, but it's the same topic as, uh, I can't quite put my finger on what makes it the same topic.
Historic supply and demand for metals? Something like that.
In any case, a very interesting post.
-jus me
Maybe Pentium_Six needs a 'Cramer disclaimer'.
ReplyDeleteOr maybe a Robert Burns disclaimer:
"The best laid schemes of mice and men
Go often askew,
And leaves us nothing but grief and pain,
For promised joy!"
"The best laid schemes of mice and men
ReplyDeleteGo often askew,
And leaves us nothing but grief and pain,
For promised joy!"
watchtower,
Nice, I enjoyed that!
watchtower (& mab),
ReplyDeleteLove the quote.
And now for something completely trashy. ;)
There once was a man, a fanatic
Who hoarded a coin, so fantastic
It bought him a car
At the local town bar
It was the ultimate win, so romantic!
jus me,
ReplyDeleteThe missing "mining" tag has been added. Thanks for catching that!
I figure if I am referring to the USGS data, then it definitely deserves a mining tag.
If you consume too much silver you turn blue!
ReplyDeleteGYSC,
ReplyDeleteArgyria for the wince! ;)