Knowing how to play your cards right in the silver market could see you with returns of up to four times your initial investment. The success of every commodities lies in the inherent struggle between the demand of the good and its demand. All commodity fortunes were created by using this factor to decide when and where to invest.
If a lot of people want to buy silver, but there is not enough to go around, prices soar. The investors who own the silver make phenomenal profits when this happens.
The price of gold has shot up over 400% in the last decade, copper and platinum prices have increased over 500% in the same amount of time. With growing demand and falling supply, the price of these resources has been steadily driven upwards. Silver, on the other hand, has seen no significant shortage or surplus crisis in the past few years. Yet.
We silently witnessed a total drop in worldwide supplies of above ground silver, in fact, we saw over 80% of it disappear last year. We currently have enough supply of silver available above the ground to last eight days of the world’s supply. The global average demand is around 2 million ounces of silver a day, with 20 million left, silver production companies have been working around the clock to barely keep up with demand.
Shareholders of companies that extract silver have profited from this lack of silver supply with over 350% returns on investment capital. Silver Wheaton, the world’s largest precious metals miner, is one of the strongest dividend options in the silver stock market. With agreements that allow Silver Wheaton to purchase silver at a low fixed cost from the world’s richest mines in the United States, Sweden, Argentina, and Mexico.
Access to these mines allows Silver Wheaton to control the supply of silver considering that the represent a considerable amount of the world’s silver supply. The firm expects to produce over 24 million ounces of silver this year, and double this output by 2013.
Placing your investments in dividend silver stock allows you to see a real return on your investment in a very short time frame. This quick turnover strategy is backed by steady rises in silver prices and the assurance of more silver to meet the future crisis. This allows knowledgeable investors to capitalize on their possession of an excellent high quality commodity.