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The Silver Bull Market: Investing in the Other Gold

The Silver Bull Market: Investing in the Other Gold

Shayne McGuire

ISBN: 978-1-118-65484-2

Jul 2013

288 pages

Select type: O-Book


From one of the world’s most respected authorities on precious metals investment—a thoroughly researched volume on the investment prospects for silver, the other gold.

Gold, outperforming stocks for over a decade, has finally been recognized as a serious asset class to be included in any solid, diversified investment portfolio.  Considering present inflationary concerns related to accelerating fiscal crises in Europe, the United States and likely Japan in the years ahead, gold is widely held in the largest professionally-managed portfolios in the world. But silver, which has been moving in the same direction as its sister metal for forty years—and actually outperforming gold over the last ten years—has yet to be taken seriously in the investment world.  Widely perceived as an erratic, unpredictable metal best left to speculators, silver has been disdained primarily for its volatility. Taking the long view, as well as a hard look at silver’s investment demerits, Shayne McGuire examines current global financial conditions in order to provide a full and frank assessment of present and future opportunities for investors who may be considering buying silver.

  • Silver is being rediscovered as a viable alternative to gold, and demand for the metal as an investment vehicle has risen sharply over the past few years
  • Though more volatile than gold, silver is highly correlated with the more expensive metal and should continue moving in the same direction (as it has for thousands of years)
  • Widely considered a precious metals expert within the institutional investor community and author of Hard Money: Taking Gold to a Higher Investment Level, McGuire manages a portfolio with over $850 million in precious metals investments
  • While the investment literature is overflowing with books on how to invest in gold, this is the first serious book in decades offering expert insights, advice and guidance on investing in silver

Preface ix

Acknowledgments xi

Introduction: Coming to Terms with an Unfamiliar Investment, One of the World’s Oldest 1

Part One: The Logic of Owning Silver in Today’s Financial World 29

Chapter 1: Silver Moves with Gold, a Vital Asset for These Times 31

Chapter 2: Thinking about Future Inflation 39

Chapter 3: Silver’s Supply and Demand Dynamics 51

Chapter 4: Poor Man’s Gold Is Different from Other Inflation-Protection Assets 63

Chapter 5: The Gold-Silver Ratio, a 3,000-Year-Old Exchange Rate, Is Out of Historical Balance 75

Chapter 6: Always Keep in Mind the Risks of Investing in Silver 87

Part Two: A Brief History of Silver in the United States and What It Means for the Metal’s Future 97

Chapter 7: 1792: The American Monetary Foundation on a de Facto Silver Standard 99

Chapter 8: 1873: The United States Joins the International Gold Standard and Leaves Silver Behind 105

Chapter 9: 1934: The Federal Government Speculates in Silver 109

Chapter 10: 1960s: As the Last Silver Dime Is Minted, Silver Demand Surges in the Electronic Revolution 117

Chapter 11: The 1970s Silver Boom, the 1980 Crash, and the 20-Year Bear Market 123

Chapter 12: 2001 to the Present: The Bull Market Begins as Silver Reenters the Financial System 133

Part Three: How to Invest in Silver 151

Chapter 13: Deciding on the Best Way to Invest in Silver 153

Chapter 14: Two Investment Considerations: Market Manipulation and Potential Confiscation 171

Chapter 15: The Most Widely Respected Silver Investment Coins 185

Chapter 16: Your Local Coin Show, the Past Decade’s Best-Performing Stock Market 199

Chapter 17: Silver Mining Stocks 211

Chapter 18: Platinum and Palladium: Alternative Metals as Old as the World, but as New as the Internet, as Investments 233

Conclusion 243

Notes 249

Further Reading about Silver 259

About the Author 263

Index 265