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A Publication of Austin Rare Coins July 2008






 2008 Silver Profit Report – Executive Summary


Since 2001, many clients of Austin Rare Coins took our advice and accumulated gold. This has proved quite profitable as gold is up 295% to new recent highs. After watching the gold profits year after year, we began educating ourselves and our clients on the advantages of adding Silver into the mix of precious metals. Through 2007, results were impressive– Silver outperformed Gold in by a large margin in 2006, soaring 43%, and held steady in 2007 with double digit gains.

The 2008 Silver Profit Report will update you on Silver supply shortfalls, increasing demand from China, and new uses for Silver. As only 8% of the demand for Silver comes from investors today, we explain why we feel that increased buying from this group could create the biggest windfall profit potential in Silver for this generation. This Executive Summary is a brief synopsis, if you would prefer to read the complete Free Austin Report you can order and read it online immediately.

Key Reasons to Own Silver

1. Silver Beats Gold –
Silver has outperformed gold since 2001, increasing in value 415% to a 27 year high versus 295% for Gold.

2. Silver is Money – In uncertain times, Americans trust Silver as money. Silver was used from the first Silver Dollar the U.S. Mint issued in 1794 until Silver coins were removed from circulation in 1964. Silver is real, physical wealth.

3. Potential Currency Crisis – The U.S. Dollar has lost 96% of its value since 1913. The Dollar today continues to fall in value and is at risk of a crisis. The fear alone of a currency crisis is enough to drive up investor demand worldwide.

4. Silver Unbeatable as “Crisis” Money – A core holding of physical Silver should be kept accessible at all times to spend on day-to-day necessities in a crisis. Gold, in a crisis, would be priced too high for daily use.

5. Silver Demand Growing – China uses 1,664 tons of Silver annually and growing. Most industrial Silver going into products today is unrecoverable. New, innovative uses for Silver virtually guarantee a higher future demand for years to come. In most cases, Silver is consumed in new technologies like batteries, refrigerators, water purification, lubrication of jet engines, and numerous medical uses including new Silver bandages that are better than antibiotics.

6. Silver in Deficit Supply – Not enough Silver has been mined in the past 16 years to meet growing demand. Above-ground stockpiles that once filled demand are now exhausted. The U.S. Treasury held two billion ounces of Silver in 1959. Today, it doesn't own any Silver at all! Industrial nations no longer stockpile Silver so there is little overhanging official Silver supply as there is for gold.

7. Investor Demand Could Trigger Silver Rush – As word spreads of the shortfall of any commodity, prices can rise quickly. That’s why we’re trying to get the facts out. Silver is a very small investment market. Even a small influx of investor demand could double demand and further drive up Silver prices without notice. At recent highs over $20/oz, all of the world’s Silver Bullion supply is valued at a paltry $9 Billion. Bill Gates, the founder of Microsoft, could buy all of the world’s supply of Silver Bullion and still have about $50 Billion left over.

Conclusion
This article promotes Silver primarily as a commodity with a huge supply/demand imbalance, making Silver one of the best investments we have researched. The world is using more Silver due to developing countries like China, and India. Above-ground stockpiles that held price increases in check have been depleted. The price rise from $4.06 in 2001 to today’s new high around $20 reflects that industries are willing to pay ever higher Silver prices to manufacture their products.

Any event could trigger a sharp rise in Silver. Just the fear of a currency crisis (and not a crisis itself) is all it would take to repeat windfall Silver profits like those we saw in the 1970’s when Silver peaked at $50 per oz. As an investment vehicle, Silver is a tangible safe haven and has been money– a medium of exchange– for 2,500 years.

Our Recommendation: Precious metals have been rock solid, safe, secure investments since humankind began trading money. While past performance is no guarantee of returns, we recommend a core holding of physical Gold and Silver coins in the current investment environment.

We believe that Silver added to a Gold portfolio will increase your exposure to precious metals profits with no more risk than holding Gold alone. Typical commodity bull markets have lasted about 22 years since 1804 and exceeded previous highs. Silver is only in its seventh year of the cycle– don’t miss this fantastic opportunity.


 


Austin Rare Coins & Bullion
The Austin Report is a service of Austin Rare Coins, Inc.
7200 North Mopac Ste 310, Austin, Texas 78731
Serving Investors and Collectors Since 1989

      Questions?  Call A Silver Specialist at 1–800–928–6468       


Disclaimers: Austin Rare Coins & Bullion has prepared information on this site for the private use of our readers.  It should not be taken as personal financial advice.  The information herein is obtained from a variety of sources that we believe to be reliable, but we cannot guarantee the accuracy or that information has not been condensed or may be incomplete.  All opinions expressed by the editors of The Austin Report and those expressing opinions are subject to change without notice.  We are not financial advisors.  The information about future predictions, projections, or financial advice could prove to be unprofitable.  This firm is specifically in the business of selling gold, silver, platinum and rare coins to the public and offers its opinions from that viewpoint.  We generally make available news and opinions that relate positively to our markets and do not seek to present a balanced view of the investment markets.  We advise that you seek out information from a variety of news sources before making any investment decisions.  It’s important to always remember that past performance is no guarantee of future value. These products may not be suitable for every individual as the value of gold, silver, and rare coins go down as well as up in value.

 

Disclaimers - Investing in Silver
In the late 1970’s, the Hunt Brothers cornered the silver market and drove up prices to the $52.50 mark – an all-time record high for silver. Remember that silver prices and silver dollar prices can be volatile due to the size of the market. Risks and rewards vary depending on the kind of silver investment you make. Be especially careful when investing in silver futures, silver mining firms, or any silver products.

Understand the risks and rewards before investing. Remember that the price of silver once traded as high as $52.50 an ounce. That was for a short time only and due to the Hunt Brothers manipulation and cornering of the silver market in late 1979/80. That was a unique event that may not be repeated in our lifetime.  However, with such a past market high, this makes the present $17 price level even more attractive to us.  However, the all-time high price for U.S. Silver Dollars had no relationship to that event at all. The all-time highs for Morgan Silver Dollar occurred during in 1987, a time when spot silver traded between $6.76 and $7.93.

Silver Dollars represent a large segment of the number of actively traded U.S. Rare Coins. They are extremely popular and very affordable to wide segments of the U.S. population. Their large size and pure silver content of .77344 troy ounces have always been very appealing. Prices for Silver Dollars can go down as well as up. At times the Rare Coin Market can be thinly traded.