Many subscribers may be unaware that the Discount Silver Club buys silver as well as sells it. This is true even if you bought your silver from another dealer! We will buy any .999 fine or 90% silver that we sell. If you're not sure, please email or call and ask us for a quote. We usually pay 92-94% of our current sales price, depending on demand.

If you need some cash, or you want to take profits on your silver investment, let us know what you want to sell. We'll give you a quote that day, and arrange payment terms. We encourage you to shop around and get several quotes. You'll find that we pay more than most coin dealers.

When I started the Discount Silver Club, silver cost under $5 an ounce. In fact, the spot price remained under $5 until August 2003. If you bought silver then and held it, you have gained at least 40%. That profit is much higher than returns on the Dow or S&P 500 over the past two years, and it's even outpaced real estate in many areas.

This stellar return was not unexpected if you understand the fundamentals of the silver market. The U.S. Defense National Stockpile Center relinquished its last ounces of silver to the U.S. Mint in 2000. In about 50 years, the U.S. stockpile of 3 billion ounces was depleted, and the U.S. became a net buyer of silver to mint its Silver Eagles. In addition, the applications for silver in industrial production have increased, while the global population has skyrocketed. Citizens of developing nations such as India and China have become more prosperous, and are buying more consumer goods containing silver. This demand has outpaced silver mining for the last sixteen years, and the supply deficit must be filled with above ground metal.

This increase in demand has kept the average price of silver above $7 an ounce in 2005. With this rapid move in silver, we should see a raging bull market in silver stocks. Most commodity producers whose product jumps in price experience a great boost in profitability, and stock price appreciation. For example, Exxon Mobil's profit jumped 32% last quarter, with income of $7.64 billion, and their stock has doubled since 2002.

Despite this price increase, the silver producers are still struggling. Many stocks have traded sideways for the past year. If you own any silver shares, you know that most companies aren't any more profitable than at $5 silver. Mining costs have increased sharply over the past two years, due to spikes in machinery, labor, health care, and especially fuel costs. An additional complication is the practice of high grading. During the long bear market, many miners extracted the high grades to stay afloat, and now must process lower quality ore.

Silver companies can't continually produce at a loss. They will close mines, lay off workers, sell properties or go bankrupt if they can't get financing. Some miners have decided to wait for higher prices before they produce silver. Others, like Silver Standard Resources, have even purchased bullion because they believe it's a bargain.

Although silver is up 71% since 2003, don't make the mistake of thinking it's expensive. The price of silver has lagged behind the rate of inflation for many years. According to the Federal Reserve's own inflation calculator, an ounce of silver which cost $50 in 1980 should be worth $118.08 in today's dollars. I don't know of any other investments that cost 86% less than they did 25 years ago, with a sixteen year supply deficit. If I did, I would certainly stock up.

I believe we will soon enter the second phase of the silver bull market. New investors will realize the incredible value of silver as Warren Buffett did in 1997. This wave of fresh buying will push the price higher. As Ted Butler points out, buying precious metals below the cost of production is "ultra-low risk." As long as you don't let yourself be thrown off the silver bull with its sharp price moves, you should see excellent profits in the years ahead. Buy physical silver with your savings and don't worry about the volatility as long as the long-term trend is up.