His proposed policy for STABILIZING the USA economy, once and for all, was to change the monetary standard from Gold to Silver.
That is how distraught the citizens of the USA had become. They wanted a solution and they wanted it now. Many were convinced Jennings had the answer, but, when it came to the actual vote, the Gold Standard won out at the ballot box.
Silver and Gold: Better baits for Investments ? (click here)
Silver gained nearly 2% and hovered near USD 35 an ounce ever since crisis crippled world’s third largest economy, Japan. During the same time Nikkei had tanked almost 10% and most other countries indices were affected.
Fundamentally, there are three main reasons which has been the price driver for silver: higher industrial demand, safe heaven for investment and supply dynamics. The industrial demand for previous year for silver was 48%. Peru, Mexico and China are the three main producers of silver. The total mine production has increased by 4% or 709.6 Moz (Million ounces) this year. On the other hand the gold demand has risen by 3% this year.
The return of gold for a 4 year average period is 22.00% while that of silver is 25.44%. This has made silver more attractive as an investment than the gold. The retail investment in silver is increasing at a faster rate than the retail investment in gold. The truth is silver has certainly out shined gold.
Inflation in China as well as in India, who are the major consumers of precious metal, has been high. With such inflationary pressure, investor find their solace in Gold and Silver. Importantly, investment in silver has been high for the simple reason that silver is affordable as compared to gold....
Now there is a reason I referred to all this and I'll get to it in the next entry.
