Silver: A Guide to Investment Profits

Kenneth M. Glazier was Chief Librarian Emeritus at the University of Calgary, Alberta.

Many people looking for a quick way to make money have heard the suggestion: “Buy silver. The price is low, and the profits are high.” Unfortunately, the results of investment in silver have, for some, been disastrous. This publication by Chuck Chakrapani will help the investor understand the complexity and the pitfalls of the silver market.

Chakrapani has an impressive background of experience as a Fellow of the Royal Statistical Society and as Senior Research Officer at the London Business School. He has published two other books on investing. The theme of this book is his expectation that the price of silver will rise dramatically during the 1980s to perhaps $100 an ounce. He sets forth seven major factors that will contribute to this price explosion: 1) the supply of silver is limited and is shrinking; 2) current production of silver is far lower than current consumption; 3) production cannot be instantly increased to meet the demand; 4) industrial use is not likely to diminish when the price goes up; 5) silver may be underpriced in comparison with gold; 6) silver is gold’s junior partner as “money”; and 7) expert opinions favour silver.

Then follow many charts and statistical tables on silver demand and consumption, everyday users, silver coinages, Canadian silver mining stocks, and a quarterly comparison of gold and silver stocks since 1979. One of the most useful sections is devoted to the questions that an investor is likely to ask, followed by succinct answers. There is a plethora of information on major silver producers worldwide, precious metal dealers, brokerage firms, silver refiners of the world, and even a bibliography of books for further reading. This is a valuable book for those interested in silver as an investment, but one has to remember that even the specialists like the Hunt brothers of Texas in the 1970s and early 1980s had a few lessons to learn as they adjusted to their enormous losses.