“Yes, David, everything was correct. You and Certified Gold Exchange provided very excellent service - Thanks.“- Candice H., Atlanta, GA
“My prayers were literally answered when I found CGE. They helped me set up a diversification strategy with gold and silver and now I know my family and I will be protected from the coming collapse.“- Raymond D., Pittsburgh, PA
“I sleep well with gold & silver in my IRA.“- Henry K., Salt Lake City, UT
“I feel very lucky for having chosen CGE to do my gold IRA!“- Richard P., Champaign Urbana, IL
“We invested in silver for the first time with Kim Cross a few years ago. She got us out of bad situation with another broker and we haven't looked back since.“- Jennifer H., Midland,TX
“I am retired NYPD and it took 2 months to get my old custodian to release the funds, and the whole time David Michael White was completely patient and stayed in contact with them as they made me jump through one hoop after the next. Thanks David!“- Marty A., Lubbock, TX
“God bless David White and your fine IRA team; life really is about service to mankind.“- Peter A., Anchorage, AK
“I would highly recommend CGE for a gold Roth IRA like mine.“- Tom G., Little Rock, AR
“Pat Collins is maybe the greatest adviser on Checkbook IRA for people wanting home delivery of their IRA gold and silver. Pat gives you the pros and cons of home gold IRA programs. Thanks for the help with consolidating my IRAs. This means a lot to a single mother with 3 growing boys.“- Rachel T., Phoenix, AZ
“My custodian referred me to you folks and it has gone much better than I could have imagined.“- Jimmy G., Lake Forest, CA
“The Certified Gold Exchange was highly recommended by a member of our congregation. I spoke with Joseph Morton and he took all of the work and worry out of moving my IRA out of stocks and into gold. Thank you Joseph and CGE.“- John E., Jackson, MS
“Having Joseph’s help with my IRA has been a godsend.“- Karyn C., Harrisburg, PA
“CGE - You're good people.“- Robbie B., Dublin, OH
“My first buy was in 2005 with Joseph Morton who recommended American eagle proof coins. Today, December 12, my account is up to $685,000 from the $280,000 I started with.“- Mandy A. Seattle, WA
“Your IRA team are good people!“- Steven F., Tampa, FL
“A self-directed IRA with CGE is the way to go.“- William P., Madison, WI
“My experience with the Certified Gold Exchange has been great. Pat Collins is a real straight-shooter.“- May H., Boulder, CO
“I have recommended several co-workers to David Michael White because he really is the smartest investment guy I have worked with. I would also recommend David to you if you’re looking to transfer an IRA to gold or silver.“- Franz Y., Boise, ID
“With the complete lack of leadership in this nation, I trust CGE to keep me safe.“- Simon C., Grants Pass, OR
“IRA transfer specialist Pat Collins is super helpful! Glad I found the Certified Gold Exchange.“- Marcus B., Milwaukee, WI
“I never knew moving my 401k into real gold could be so easy. I would recommend Rusty Manor and the Certified Gold Exchange any day of the week.“- Bobby B., Farmington, MO
“I started the transfer process with a California company but then I found out CGE had a much better reputation so I switched midstream. The process went 1000% smother after the switch.“- Barry L., Fairfield, CT
“David Michael White is the best retirement professional I have ever used. Very helpful in saving me money.“- Harish S., Rochester, NY
“Transferred my wife’s 260k IRA using Certified Gold Exchange with no surprises.“- Karl P., San Jose, CA
“CGE has the best retirement team in the country!“- Diana C., Dallas, TX
“I had two previous employer 401k accounts and two IRAs and Joseph Morton was very helpful converting all 4 accounts to 1 self-directed IRA. Thanks Joe!“- James K., Denver, CO
“I don’t trust the government so the home delivery precious metals IRA was perfect for me.“- Edwin M., Casper, WY
“I was so confused by all the companies I spoke with, but after reading Real Money Magazine, I knew CGE was the company I wanted to work for me.“- Mike J., Providence, RI
“Thank you for the prompt reply to my request for information, the clear explanations and the fair pricing. Rest assured, I will be buying more soon, as well as recommending CGE and my broker David Michael White to my colleagues.“- Frank W., Cape Elizabeth, ME
“Stewart Lawson and CGE were like a godsend for me after another company almost talked me into buying something that was more for collectors than investors. Thank you for helping me understand the difference between coins, your reputation speaks for itself.“- Tim T., Long Island, NY
“After talking to a few high-pressure salesmen, finding certified Gold Exchange was practically a miracle. Non-commissioned reps, low prices and free delivery…what more can you ask for?“- Nancy M., Charleston, WV
“Thanks David Michael White and all of the CGE staff for making my first venture into the gold market easy as pie!“- Mary K., Decatur, GA
“A phone call and an email every time something happens on my account like when you get my check and when you ship out might be a little overkill, but for investors with a touch of paranoia like me, it is truly appreciated. Thanks for all your help David, Kenny and the rest of the CGE staff.“- Linda B., Seattle, WA
“Your broker Ryan Justice was more than patient with me as I called at least a half a dozen times before I bought my gold coins. You folks have earned my trust and business for life. Thanks for the patience and helpful advice.“- Albert Y., Helena, Montana
“I found your company to have the lowest price online for gold bullion bars, and after checking your reputation online, I knew it was NOT too good to be true. Thank you for your professionalism and fast, free and confidential shipping.“- Sahim P., Roanoke,VA
“My broker (Stewart Lawson) didn’t pressure me at all, I got a phone call and an email when they got my wire and when they shipped my gold, and a follow-up call to make sure I was happy with my coins. I couldn’t have asked for an easier transaction – or a lower price for that matter.“- Susan O., Oxnard, CA
“My wife told me to buy gold almost 10 years ago, and I wish I had listened to my better half sooner. Still, I’m already up 5 percent from when I bought less than a year ago, and we both sleep better at night knowing that we have something besides paperwork in our safe.“- Don R., Portland, OR
“I retired four years ago and felt so hopeless as I watched my 403(b) shrink each quarter. Luckily, I found Certified Gold Exchange. I transferred my 403(b) into a Gold IRA and I can even take delivery of the gold instead of cash when I take my distributions.“- Woodrow H., Savannah, GA
“It took my brother three years to convince me to buy gold, and I’m glad I finally listened. Now I buy gold every quarter instead of just letting my money rot in the bank, and I’m already up more than 200 percent in less than five years!“- Steven B., Tuscon, AZ
“I was skeptical about buying gold online, especially after talking to some shady dealers. But CGE made me feel completely at ease, my broker David Maxwell answered all of my questions and was extremely patient with me.“- Diane A., Milwaukee, WI
“David Michael White is very conscientious and great to work with.“- E.B., Tuscon, AZ
“David Michael White was very informative but not pushy in any way. Delivery and services exceeded what we were promised. We would recommend this firm.“- Susan D., Bristol, CT
“Kim Cross has been very helpful and it's a pleasure to do business with her and CGE.“- Bryce S., Chicago, IL
“I appreciate Michael White's attention and unbiased information as I entered the gold market for the first time and had a LOT of questions.“- Linda P., French Lick, IN
“Michael White and Stewart Lawson were both very helpful, and they were extremely patient since it was my first time buying gold. They are both a credit to CGE and I will most definitely do business with CGE again.“- Wayne W., Helena, MT
“I’ve been investing with your business for over 10 years and never have I had a single issue. All my gold arrives fully insured and in perfect condition. Thanks!“- Catherine B. Louisville, Kentucky
“I never thought gold investing would be so easy. On Monday I called your firm, and by Thursday I had 3 boxes of gold delivered right to my door. Cheers!“- Michael M. Salem, Oregon
“I used to be a huge real estate investor back in the day until the market tumbled. Now I’m sitting pretty with certified gold coins and I couldn’t be happier.“- Eugene G. Miami, Florida
“David Michael White is a true gentleman. He walked me every step of the way to a successful gold investment despite my disabilities. Thank you.“- Mary L. Dallas, Texas
“Thank you all for the genuine support. With your help I have been able to preserve the wealth in my IRA and profit better than any stock ever dreamed of.“- Linda B. Boston, Massachusetts
“I’ve been investing in gold for over 20 years and never have I dealt with a company like yours. Thank you Michael White and Kim Cross for all the great help!“- Julie B. Wyoming, Michigan
“When I first did business with you, I was a little skeptical. Nearly 10 years later, I now know that there is nobody in the industry that does it better than you.“- Larry H. Charlotte, North Carolina
“After my wife passed away, my investments, along with my life fell apart. David Michael White helped me get everything back together. Thank you so much.“- Alan L. Turbeville, South Carolina
“Michael White and Kim Cross have made my gold investments as easy as pie. Now I’m fully invested in the gold market with over 400% profit since 2004!“- Robert M. Los Angeles, California
Between long-term fundamentals and near-term catalysts, these seven reasons to make a silver investment in 2018 could soon prove that the best time to buy is right now.
Market frenzy has come out of the prices for silver and precious metals over the last several years. Other investment indexes continue to set new highs and investor enthusiasm has rarely been higher. Any student of history could tell you that those facts alone mean smart investors should be positioning their assets in silver and other true measures of value.
As investor complacency for risk dwindles and borrowing on margin surges, long-term investors know that the party in stocks and other financial assets will not last forever. On a decline of more than two-thirds in the per ounce value of silver since 2011, seven catalysts are pointing to near-term and longer-term strength in one of the world’s most sought-after hard assets.
Several measures are acting to support current prices while others will have a longer affect. Many are already making stealth purchases before the rest of the market catches on to what could be another secular jump higher in prices.
Reason #1 to Make a Silver Investment in 2018 – Demand is Increasing
Unlike other precious metals that have limited demand outside of jewelry and investment, industrial applications for silver account for about 60% of global demand. That means, as the global economy grows, so does demand for silver. While the digital age has decreased the demand for silver in photography, it still accounts for just over 5% of total demand.
Even on shrinking demand for silver in photography, consulting firm CRU forecasts demand for the metal is to increase by 27% over the four years to 2018. The 142 million ounce increase in industrial demand will be led by a 4.4% annual increase in photovoltaic solar panels and 4.9% annual growth in the automotive industry, both large users of silver.
More than a quarter (28%) of industrial demand for silver went to Photovoltaic panels in 2013. As solar cell technology becomes more affordable as a renewable energy source, PV panel demand for silver could increase at a much faster rate and draw a considerable amount off the market.
Demand from investors and Silver exchange traded funds is really the wild card. While demand for silver in industrial applications and even for jewelry is relatively easy to forecast, investors can jump into the market and send the price soaring. Even against continuous liquidations in the Gold ETF over the last several years, the Silver funds have seen solid demand and ETF holdings should rise by about 15 million ounces this year.
Lower prices last year sparked a volatile bounce in demand by funds with the six largest silver-backed ETFs increasing their holdings by 104 tons to a record 17,135 tons in a single day in September. Total demand for silver is expected to reach 1,036 billion ounces this year with the potential to go much higher on a return to investor sentiment.
Reason #2 to Make a Silver Investment in 2018 – Inflation is Coming!
To hear economists and market pundits talk, global inflation is dead and deflation is the only economic bogeyman worth mentioning. The annual increase in prices has slowed to 0.9% in the United States and basically zero in the eurozone over the year to April 2015.
But the market would be wise to watch history and the ability of inflation to jump without so much as a clue beforehand. It was only three years ago that annual inflation doubled to 3% in 2012 from the prior year and the five-year average before the financial crisis was above three percent.
Against the singular mindset that inflation will never be a problem, the monetary authorities are pumping historic amounts of money into their financial systems. The U.S. Federal Reserve has mostly stopped its monetary program, after increasing money in the system by nearly 400% over the five years through 2014, but Japan and Europe are just getting started on their programs.
The European Central Bank has committed to pumping more than $1 trillion into its financial system over the next 18 months to September 2017. It will do this by purchasing sovereign bonds and corporate debt, driving yields further to historic lows.
The focus on monetary easing could have disastrous consequences. The Swiss government recently became the first country ever to issue ten-year bonds at a negative interest rate. Investors are actually paying the Swiss government to hold their money over the next decade for a guaranteed loss on the investment. The cost of debt, its yield, has disconnected with reality and the cost of borrowing money has lost all meaning for governments and investment-grade corporations.
When large institutions and corporations can borrow money at almost no cost, they will and they will do so until there is so much fiat money in the system that inflation returns with a vengeance. When this happens, only true stores of value like hard assets will offer protection.
Reason #3 to Make a Silver Investment in 2018 – Supply could be about to Fall
The record plunge in metal prices in 2011 caused a snap decision at mining companies to drastically cut capital investment. A bleeding cash position needed to be protected to keep miners afloat so spending on mine development was cut to the bone.
This is typical in the commodity cycle as miners spend billions to ramp up production as prices are booming only to move the market into an oversupplied condition that causes prices to plunge. As prices plummet, management panics and cuts spending to protect the company, leading to an eventual production deficit. And the cycle begins anew.
HSBC is forecasting a decrease in mine supply, both primary and by-product, through 2015 as low prices discourage scrap recycling. The bank notes that government sales seem to have ceased altogether as governments have sold out of their reserves over the last several years to make up for the deficit in production. The bank has a price target of $20.50 through the end of the year with a range forecast of $15.25 to $21.25 per ounce.
Even as silver prices increase, it may take several years production to increase to meet demand. According to the 2014 World Silver Survey, 71% of global silver production comes as a by-product of mining copper (20%), gold (13%) and lead & zinc (38%). This means that even as demand for silver increases and the annual production deficit jumps, mining production may not increase significantly if prices for other metals do not increase. If gold prices remain depressed, gold miners will have little incentive to increase production and the supply of silver mined as a by-product will be limited.
Not only are long-term fundamentals positive for decreased silver production, but the metal is prone to geo-political risks as well. The chart below graphs the top 15 silver-producing countries, seven of which are considered high-risk for labor stoppages or other political risks.
These 15 countries supply 93% of the world’s mined silver, with the top five accounting for 62% of production. Many of the producers are net importers; for example, the United States only produces 35% of its annual silver demand.
Russia has seen its economy toppled by sanctions and the drop in oil prices, while Mexico continues to struggle against corruption and drug cartels. A disruption in just these two producers could take up to 25% of annual silver production off the table.
Governments have managed the annual production deficit in silver over the last decade through sales of reserves. Through 2014, government reserves have nearly been exhausted and net sales have ceased to add to supply.
Reason #4 to Make a Silver Investment in 2018 – Safety from the Coming Crash in Stocks
The graph below overlays the value of the S&P 500 index on the balance sheet of the Federal Reserve over the six years to March 2015. The Fed increases its balance sheet through monetary programs, discussed earlier, by buying bonds with money printed by the Treasury Department.
It doesn’t take Warren Buffet to see what is going on in the markets. Pumping more money into the financial system has lowered rates, causing investors to seek higher yields in stocks and other risky investments. Each time the Federal Reserve ended a monetary program, the market stagnated until a new printing scheme was developed. The Fed ended its final program in late 2014 and is now talking about raising interest rates, something it hasn’t done since June 2006.
As if a 200% increase in the S&P 500 over the last six years was not indication enough of overheated asset prices, take a look at three other global markets in the graphic below. The Japanese Nikkei index and European Stoxx 600 have risen fairly steadily over the period. The Shanghai composite fell on weaker Chinese economic growth, but has more than doubled over the last year.
What happens when the Federal Reserve decides to take the punch bowl away from the party? While monetary programs are still pumping money in Japan and Europe, a drop in the U.S. market may have a contagion effect on the rest of the group. Governments will resort to even more monetary programs, powerless to support investor sentiment, and the next crisis will commence.
When financial markets collapse and indirect assets lose value, investors rush to the safety of hard assets and real stores of value. Prices for precious metals could surge as they did after 2009.
Reason #5 to Make a Silver Investment in 2018 – Long-term Returns are Attractive
A look at a chart of silver prices shows just how volatile the investment has been over the last decade. As the price of gold lost a third of its value since 2011, silver prices have fallen faster and have erased two-thirds of its value.
But long-term fundamentals for the metal have won out over short-term market hysteria. Even after the plunge in the price of silver, investment in the metal has yielded a compound annual return of 8.2% since 2000, well over the 2.7% annualized return provided by stocks in the S&P 500.
These long-term fundamentals, like increasing demand and limited production, will continue to support prices and long-term returns look attractive. Applying a trend-line to the price of silver from the beginning of the millennium should support the price to $25 per ounce, more than 50% above the current level. Even if near-term factors fail to push silver higher and it takes three years to reach this long-term trend level, investors will realize a compound annual return of nearly 15 percent.
Reason #6 to Make a Silver Investment in 2018 – Gold/Silver Ratio Hints at Imbalance
The price for silver is often analyzed relative to the price of gold; in more basic terms, the amount of silver it takes to buy one ounce of gold. With the price of gold around $1,317 per ounce and silver just above $16.97 per ounce, the gold-silver ratio is at seventy-seven.
Prior to 1900, many countries issued gold and silver coins and enforced limitations on the level at which the ratio moved. The U.S. Geological Survey estimates 17.5 times the amount of silver in the ground relative to gold, so there is some fundamental basis for the ratio.
While the ratio has risen steadily since the 1970s, it has averaged around 60 times over the last couple of decades. The faster decline in the price of silver since 2011 relative to gold prices has increased the ratio significantly and it is close to the point where it has broken lower in the past. Since gold has found a strong bottom above $1,100 per ounce, a decrease in the ratio would likely have to come from an increase in the price of silver.
Why is the gold-silver ratio important? Besides being a trading signal used by commodities investors and other market participants, it helps to measure the relative attractiveness of the two metals. While gold may be a good investment in many of the upside scenarios for silver, such as increasing inflation, it is currently very expensive relative to its peer metal.
Reason #7 to Make a Silver Investment in 2018 – Technical Strength to the Upside
Besides the strong, longer-term fundamental reasons to make a silver investment, the commodity is showing technical signs of a rally that could lead to excellent short-term gains.
The price of silver recently broke higher through the bottom band of its simple moving average envelope and made a quick move to upper resistance. The steep sell-off over the last six months of 2014 appears to have established a bottom in prices. Prices should find strong support between $15.50 and $16.00 per ounce. Silver may meet some resistance breaking above the $17 per ounce level in the near-term but fundamentals should help it break out and move higher long-term.
The 14-day stochastic relative strength indicator (RSI) has recently moved from an overbought condition, signaling a good opportunity for new investors. The RSI measures the current pricing strength against its high-low over a set period of time. If the price falls to the lower band in which it has been trading, it should be supported higher unless new information influences fundamentals. On a technical basis, the RSI is flashing neither a strong buy nor sell signal but presents a good opportunity to start dollar-cost averaging.
How to Buy Silver
While short-term profit potential exists, the smart money is buying silver for long-term protection and growth. This can be done through exchange traded funds, but these investments are subject to risk in the financial system and record-keeping. Most investors have sought safety and protection through a portion of their investment in physical possession.
Physical investment in silver can come in the form of bullion products like bars, rounds and legal-tender coins. Coins are often preferred since they are easy to transport and less expensive per unit that larger bullion bars. Among coins, the Morgan Silver dollar is the most popular investment since before the 20th century. Beyond physical possession, precious metals can be held in a custodian account at approved and insured depository trustees.
Knowing from whom to buy precious metals is just as important as how you buy. Brokers and custodians must be carefully vetted before buying and storage. Many overnight shops have appeared over the last several years to take advantage of investor complacency and misinformation.
The Certified Gold Exchange has built a reputation as the market leader in silver and other precious metals over more than two decades of service. An A+ rating by the Better Business Bureau is a testament to its level of quality customer satisfaction and fair dealing. Account representatives are specialists in their specific metal and non-commissioned, so you know your satisfaction is their only agenda.
Beyond the popular Morgan Silver dollar, Certified Gold Exchange also offers the American Eagle Silver and Peace Silver dollars, the Silver Canadian Maple Leaf and the Sunshine Minting Silver Round. Call a certified account representative at (800) 300-0715 or by clicking through to How to Buy.
Fund your gold IRA by 8/1/2015 and you'll receive up to $500 cash back.
You must call now to confirm your rebate and please mention
promo code .
Callers receive expedited service and a free CGE golf cap.
Call 1-800-300-0715No thanks
To set up your visit, please call 1800-300-0715 Ext. 303