Curried Wealth Building
Finding an Edge

If you want help with your finances, give me a call at 703-791-3243.

.

The Reality of Resource Scarcity
 
The Information in this little article is known by less than 1 in 1000 people.  It will be vital that you know this information as we move forward and you make your investment decisions.  Let's get right to the chart:
 
 
Now I realize that it is hard to read this but I think it helps to see the whole image at once.  Here is a larger version that is more easily read.  The chart shows statistics for 19 key elements used in all types of manufacturing.  The chart is divided into three main parts.  The right side shows the percentage of each that is recycled.  Lead and aluminum have the highest recycle rates which makes sense as lead is primarily used in lead acid batteries which are almost always recycled and aluminum because of aluminum cans. 
 
The left side shows the amount consumed per capita in the U.S.  Surprisingly, phosphorus is #1 followed by the more obvious aluminum, copper and lead.  Note that the scale is logarithmic so it is compressed at the top and expanded at the bottom.  If the chart was linear, the chart would be gigantic.  Note gold is only used at a 0.6 gram per year while phosphorus is consumed at over 107,000 grams! 
 
The middle part of the chart, the wheel, is the key to the information it contains.  The bar for each element shows two values.  One is the amount of years left at current world consumption rates and the smaller number is the amount of years left if the whole world consumed at 1/2 of the U.S. rate.  This is where the world is heading as the internet shows more and more of the world how we live.  Unfortunately, this just isn't feasible.  Look at the numbers. 
 
One element sticks out like a sore thumb:  silver.  It only has 7 years of resources left if the world accelerates its use and it's easy to invest in. (the chart was done in 2007 so you can take 2 years off all numbers)  There are also more and more uses for silver being discovered including refrigerator piping and underwear as it kills bacteria.  Here is a list of some uses from the Silver Institute:
 

Silver Uses

Demand for silver is built on three main pillars: industrial and decorative uses, photography, and jewelry & silverware. Together, these three categories represent more than 95 percent of annual silver consumption. In 2007, 455.5 million ounces of silver were used for industrial applications, while over 128 million ounces of silver were committed to the photographic sector, 163.4 million ounces were consumed in the jewelry market, and 58.8 million ounces were used in the silverware market.

Why is this indispensable metal in such demand? The reasons are simple. Silver has a number of unique properties including its strength, malleability and ductility, its electrical and thermal conductivity, its sensitivity to and high reflectance of light and the ability to endure extreme temperature ranges. Silver’s unique properties restrict its substitution in most applications. Choose from the following list to learn more about some of the various applications of silver:
 
Silver Uses
  • Traditional
    • Coinage
    • Photography
    • Silver Jewelry
    • Silverware and Table Settings
  • Industrial
    • Batteries
    • Bearings
    • Brazing and Soldering
    • Catalysts
    • Electronics
  • Emerging
    • Medical Applications
    • Mirrors & Coatings
    • Solar Energy
    • Water Purification
 
So one of easiest things to invest in may actually run out.......in less than 7 years?  Let's be conservative and say 15 years.  Silver will be GONE in 15 years.  This will lead to wildly inflated prices of silver including almost anything made from it including jewelry.  This is a no brainer.  You must own some silver.  Preferrably the physcial metal.  Silver stocks such as Silver Standard are also acceptable, but with the knowledge on this chart there is just no way you CAN'T own silver.  Don't be kicking yourself in a couple years for not having done anything with this knowledge because this will get out and people will start to buy silver, LONG before it runs out. I'd buy 90% junk silver as it is very unlikely to have been tampered with and is easily recognizable.
 
I would say that this is one of the biggest no brainers in the history of investing.  For this to pay off, you don't need anything to happen.  Not hyperflation, not war, not an economic collapse, nothing but time and normal consumption.  How easy is that?