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Infographic: Paper Silver vs Physical Silver
- 1. PHYSICAL SILVER SUPPLY Annual physical silver supply: 30,060 tonnes = 0.4% of the annual volume traded. Globalmineproductionandsilverrecycling2020.Source:SilverInstituteWorldSilverSurvey2021 Silver mine production in 2020 24,400 tonnes Silver recycling in 2020 5,660 tonnes Silver Bars held by Exchanges: 17,278 tonnes = 0.24% of the annual volume traded. 12,608 tonnes London LBMAvaults 4,670 tonnes Comex NewYork vaults Tonnesasof end2020.LBMA data excludes silver held by ETFs in London. COMEX data refers to ‘Registered’ category silver. PHYSICAL SILVER Investment Precious Metals High Purity Coins and Bars From leading Silver Refiners and Mints Intrinsic Value Costly to mine, refine and mint Physical Silver: A Monetary Metal for Thousands of Years Physical Silver has no Counterparty or Credit Risk A Tangible Asset A Physical Asset outside the Financial System INVESTMENT PHYSICAL SILVER BULLION SILVER COINS AND BULLION SILVER BARS IN TOTAL, 27,500 TONNES OF SILVER HAVE BEEN MINTED INTO AMERICAN SILVER EAGLES AND CANADIAN SILVER MAPLES 17,700 tonnes of American Silver Eagles minted since 1986 9,800 tonnes of Canadian Silver Maples minted since 1988 STORAGE OF PHYSICAL SILVER Wholesale silver bars are stored in secure warehouses and vaults Retail silver bars and silver coins can be stored in vaults or safe deposit boxes Vault Safe Deposit Boxes Home Paper silver does not need to be stored because there is nothing to store. Investment silver bars and silver coins are tangible and valuable and need to be securely stored. Physical silver has many and varied uses,both Investment and Industrial. Investment demand competes with Industrial demand forAvailable Silver Supply. Exchange-Traded Funds Silver Coins Silver Bars Silver Bullion Jewelry Investment Demand A total of 1,835,000 tonnes of silver has been mined throughout history.However,about 50% of this total this has been lost over time through industrial and photographic usage. PHYSICAL SILVER IS REAL AND TANGIBLE Industrial Demand Photography Silverware Biocides Electrical Electronics Jewelry Religious Objects Photovoltaics Batteries Silver is a Monetary Metal Free of Goods and Services Tax (GST)* *Singapore GST From leading mints and refineries High purity bars and coins Investment Precious Metals (IPM) Full allocated ownership Collect, gift, and bequeath silver coins and bars Highly liquid worldwide market Tangible Wealth Preservation Add physical silver coins and bars to your Retirement Plan INVEST IN PHYSICAL SILVER INVEST IN PHYSICAL SILVER PHYSICAL SILVER IS A MONETARY METAL Many countries have historically used a ‘Silver Standard’ monetary system Dollar Comes from ‘Thaler’,a shortened version of the ‘Joachimsthaler’ silver coin which was minted and mined in Joachimstal,Bohemia. Pound Sterling Derived from the English silver coin Sterling,240 of which weighed a pound of silver. Rupee Derived from the Sanskrit word “rūpya” which means a wrought silver coin. Dinar Owes its origin to the “Denarius”, a small silver coin used in ancient Rome. Ruble From the Russian verb rubit, “to cut”,where cuttings from silver bars served as a unit of weight and currency. Peso Originally a large Spanish silver coin,whose name derives from the term ‘pesos plata’, meaning ‘silver weights’. Including Great Britain,Hong Kong,The Spanish Empire,Germany,The United States,India,Hong Kong,China Circulating silver coinage as legal tender A monetary unit defined as a fixed weight of silver Settlement of international trade in silver Many modern fiat currency names owe their origin to monetary silver Paper Trading vs Physical Silver Traded vs Inventory (tonnes) 900 800 700 600 500 400 300 200 100 0 COMEX 886:1 LBMA 251:1 Silver Paper Trading Physical Silver Inventory PAPER SILVER = Unallocated, Synthetic, Fractionally-backed ‘Silver’, Derivatives on Silver, and other Claims on Silver Bullion bank ‘Unallocated Silver’ Silver futures OTC Silver Derivatives Exchange Traded Funds (ETFs) Unallocated & Synthetic holdings Silver mining stocks ‘Screen’ silver Silver ETFs provide ownership of units of shares, not ownership of Silver Paper Silver has Counterparty Risk and Credit Risk Silver Futures are normally cash-settled / rolled, physical delivery is cumbersome No Ownership of Physical Silver Paper Silver provides exposure to the Silver Price, not to Silver 7,300,000 tonnes of paper silver traded annually in London and on COMEX Annual exchange trading volumes 2020. Source: Silver InstituteWorld Silver Survey 2021 30,060 tonnes annual physical silver supply Paper Silver Trading Volume vs Physical Silver Supply 243 : 1 The Paper Silver Market is 243 times larger than the Physical Silver Market PAPER SILVER vs PHYSICAL SILVER