Syndicate
China and the Silver Shortage
The demand that China is going to have due to its rapid growth and advancement is going to cause more weight on the industry that is already worried about the shorter supply of silver. We are already seeing it now and will continue to see how China continues to produce more TV’s, cell phones, electronic devices, computers etc, all of which are in demand and will continue to be so. This not counting the investment demand China’s population itself has.
China is going to be hosting the 2008 Olympics and when this occurs silver coin sets are made for all the Olympic events. Even though it may not be something big, if the silver sets get to be very liked, considering the amount of people China has, it could actually make a difference in the market.
Since Mexico is one of the places in the world that produces silver they are planning on using their silver as a monetary store of value. There are economists that say that Mexico has imported so much United States paper and that it might be intelligent to get this paper back into the United States.
According to the Mexican people, they are not against bringing back silver as a monetary function at the time being. The Central Bank does not agree with this but there are currently politicians in Mexico that are all for using silver along with the peso.
This is a matter that was mentioned earlier and it is not something that is taken unconscientiously given that there are some Latin countries that are some of the biggest silver producers in the entire world.
Perhaps it would be a good idea to ask ourselves when it would be convenient for us to use silver and under what circumstances. The answer to this question is directly related to what each person thinks about silver and gold and what they stand for. In the end it depends on whom you decide to trust in. it is not unlikely that man made assets will lose their value and only real things will have real worth. Nobody truly knows if this is going to happen but it is possible and given the situation in the world financially, who knows? There are presently too many paper claims contrary to the amount of silver available and it is not going to be possible for everyone to change their financial assets.
There are those that believe that the currency we live with these days is going to come to an end and that the fiat currencies are not going to hold out. Many people these days believe this more and more. This is why there are countries that are encouraging people to use a tangible money system rather than the one we presently have. It will be up to the free market to decide though.
Keep in mind that silver does add on a very big factor for technological advancement but this is not all that it has value for. The more we continue on with the actual money system (fiat), it will not be likely that the demand for silver will increase exceedingly.
There are different opinions on it. Some believe that silver and gold is a good investment while others choose to remain put in their beliefs in the current monetary system. The choice is up to each individual.