Recycled junk silver has made up the slack. With that it could be wise to buy a little silver bullion or gold bullion, put it in a safe place and call it your "true" rainy day fund.
The recycling of silver is not from old cell phones or computers; that is too expensive to recover. It comes mostly from old silverware such as spoons, coins and jewellery; with governments around the world selling off their silver bullion reserves being the biggest factor. This takes more silver out of the common peoples hands than stays in their hands.
Smart Investors Buy Low
A smart investor buys something that they believe to be, below value and then to sells it for true value or above value. Silver bullion is the ugly sister of the medals today; she has had better days for sure. I believe history tells me she will get her rightful crown and sit as a beautiful Queen once again shortly. The fact that silver bullion, at $150 an 1 oz, was the average price for over 4000 years or so.
In theory, now is the time to buy gold and silver while it is low and in time sell them when the price of bullion is high, that is how it works... right? We will only know for sure when that day comes. Now if I wait until that day comes, it will only prove one thing. I would have found out that the theory was right, the price was cheap and it is now expensive. If you only own silver - even a little, you could end up very happy.
On the other hand it could take silver 10 years to make a big move. The best reason to buy gold bullion and silver is, in the event of major break down of the paper money system, that is only backed by the pure honesty of governments. That system sounds as safe as a fox in the hen house. Yet so many people trust that system. Why? Because it has worked for more than a generation, (1972 was the loss of the USA gold standard.) More recently though that system is looks like she is about to have a major break down, because of the vast amount of paper money being printed with no real plan in place.
The chickens will come home to "roost" at some point and there is one big flock outside the coop door, in federal debt, credit card debt and the rest. The day will come when the repayment of that federal debt will not be repaid so they will probably just print their way out. That sounds like mega inflation fun.
I pray that day never comes, but history tells me otherwise (I believe I read it has happened 3800 times). Firstly, silver is the better path because silver is cheap right now historically speaking, and secondly it is used by industry in electronics, silver is a very good conductor of electricity. Gold is a even a better conductor of electricity but it is 60 time more costly so they use silver. With a growing world population, the demand for silver will grow as well.
The honest Canadian government for one gives us pure colored paper as money backed only by their honesty, no gold, no silver...let me think, WOW! The government said a few years ago when they were selling most of the peoples gold bars at $300 oz that "it did not give a good return".
Gold...give a good return? It was not supposed to give a good return. Gold is the foundation of a societies' money system. Not to make a good return on the peoples investments. Secondly, Gold is to keep the integrity of governments. Solid gold has no fuzzy numbers. Except maybe for the gold that vanished at the royal Canadian mint recently.
So again why did they sell the Gold? Because they did not know why the Canadian’s gold was put in the vault in the first place.
Likewise they forgot why silver coins were ever put into everyday circulation and into the hands of many Canadians. That ended in 1968, the last year silver coins were struck for everyday use. After that they have been taking what was in circulation out and selling it for scrap silver. The coins containing nickel followed, being the 5 cent nickels, 10 cent dimes and 25 cent quarters. Next went the 1 cent copper pennies, they were sent for melt down and sold for a profit.
The USA stopped silver coins in 1964.Now we can keep putting our trust regarding real money, in the hands of government politicians or just buy physical silver and gold bullion coins for your self.