http://www.AustralianBullionCompany.com.au
This second video follows on from Part 1 revealing why sophisticated investors buy silver and gold bullion to create and protect their wealth.
SILVER VERSUS GOLD INVESTMENT PART 2 OF 2
SILVER VERSUS GOLD INVESTMENT PART 2 OF 2
Hi, Im Dr Marc Dussault and Im here with the Managing Director of the Australian Bullion Company.
Hi, Marc.
Im sorry?
I said, hi Marc.
Yes. And his name by the way, this happens every once in a while when do these
I do like to be polite.
His name is Peter August. So I apologize for not using his name because obviously we know each other, but you might not know him. So getting on to this, were doing a few, a series actually of YouTube videos. And what I have here are silver bars and what I wanted to focus on, you started mentioning something and I stopped you at the end of another YouTube video, were talking about silver as another investment. Now I was in the printing industry where silver was used fro photographic purposes in film. And a lot of the industry thought, well when film goes the price of silver is gonna plummet; because obviously film was a big user of silver components within the actual film manufacturing process.
Okay, well just
But that didnt happen.
That didnt happen primarily because the majority of the silver that was used in the photographic industry was recycled.
Correct.
And that 87%, my understanding is, was recycled.
Yes.
So only 13%, if the photographic industry just fell off a cliff, thats only a 13% drop.
Sure.
Cause the rest was just reused.
Yeah; its a big thing in photographic shops to recycle for the content of silver, and that was when silver wasnt worth what its worth now. How much is this 1 kilo of, whats triple 95 silver by the way, what does triple 9 mean?
Okay. It means
Cause I know what 4 nines are in gold, but what is triple 9 in silver?
Okay, well thats 99.9%.
Okay, so 99.9.
So its not as pure as gold but its pure enough for investment purposes.
So as investment grade 99.9 is good enough in silver.
Correct.
This 1 kilo bar is worth how much right now?
About $680.
680 Australian dollars.
Correct.
And this obviously is worth about..?
Five times that much.
Five times that much which is about?
5 kilos.
$3,000. So thats what, you can get a sense of what this is worth. Now why would someone invest in silver, as an investor? A lot of people consider gold and silver bullion an investment only for the rich.
Yeah.
But in fact silver has an advantage, or has some benefits in relation to gold.
Sure. Well I mean you can buy silver in as little as 1 ounce pieces; generally speaking you buy them either in 1 ounce coin form, or 1 ounce bars. 1 ounce coins have become very, very popular over the last 20 years, so thats, it can cost as little as $25.
So its a very low entry point.
Correct.
And its fun for the kids.
Absolutely.
And its fun for collectors as well.
Indeed.
So thats one reason.
Theres a, I mean there are
Whats another reason from a purely financial perspective
Sure.
That if you invest $1 in silver versus $1 in gold, whats silver going to do different from gold cause weve already had a conversation with gold; because a lot of people tell me if youre a gold investor youre definitely a silver investor.
Sure.
And Im not sure what the average person would make of that statement.
Okay. Well in percentage terms I believe silver is going to go up more than gold, okay; for the following reasons, one, most of the silver thats used in industry is in non-recoverable amounts, okay, so therefore you have, I havent got the specific stats, but you have a tremendous amount silver thats being used in industry thats just completely used up.
Correct. So once its used thats it.
Thats it, its gone forever, okay. Two, there is actually less silver above ground than there is gone. Now theres more that can be mined, but at any given time there is less silver above ground. And because a lot of its byproduct its fortunes are based on the fortunes of the larger commodities in terms of supply.
Now we talked about that when we were talking about gold.
Right, yes.
Just for people who are just listening to this segment, explain that to me again just so that from a silver perspective
Okay. There are very few actual only silver producing mines.
So in other words that you go into the ground looking for silver and coming up with silver.
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@sinnersavedbygrace7 silver all the way. gold is a great investment, but silver is really under priced right now. the gold to silver ratio is currently 1 to 64 it must return 1 to 15 or even less. it is predicted that silver could go up to 500 to 1000 an ounce.
maximusTLP 1 year ago
ok, I know everyone has a different finanacial situation but being that silver is being consumed by industry where gold is not would it be more wise to invest say USD$10,000 in a little under 10 ounces of gold or about 550 oz of silver?
sinnersavedbygrace7 2 years ago
Thanx for the vid!
Look at the palladium aswell, seems to be a very nicey metal too!
daPerik 2 years ago