Chinese Citizens Urged to Buy Silver!

Excerpt from Sjugerud's Daily Wealth:

The Chinese government is now actively encouraging its citizens to buy gold and silver. (It use to be illegal for them to do so) They recently unveiled silver bullion for investing (you can see the video here). The premise is that gold was 50 times more expensive than silver in 2007... but is now 70 times more expensive.

The government is promoting silver bullion as an investment for regular citizens. And remember, a bunch of Chinese students laughed at U.S. Treasury Secretary Tim Geithner this year when he claimed the dollar was safe. The Chinese know the value of real assets... real money like gold and silver.

What does this mean for silver prices? It's impossible to say. But here's a little math that interests me. According to the Silver Institute, demand for silver in 2008 (for industry, jewelry, and investing) was 832 million ounces. At today's price, that's an $11.5 billion market... or about 1/3 the capital available in China alone.
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My Notes:

Remember also that 20% of the existing silver supply is owned by one man, Warren Buffet!

Note also that 95% of all silver mined is consumed by industrial processes and a brand new use for silver was just announced by a start up medical company that could consume a major portion of the industrial silver supply!

The last time there was a run on silver was 1971-1980. Inflation soared, real estate doubled during the decade. A house bought in 1971 for $20,000 (yes, that is what the median priced house sold for!) was worth $42,000 in 1980.

$20,000 in silver purchased in 1971 was worth $770,000 in 1980, an increased of over 3,000 percent!

Only those holding gold and silver will come out on top after the next, inevitable inflation!