Diamond Jubilee Silver Coins

If you want to buy silver coins, the Pobjoy mint has just announced a series of silver coins to celebrate the Diamond jubilee of Queen Elizabeth II who has reigned now for 60 years. Almost as long as Queen Victoria (who reigned 63 and a half years until her death in 1901 at the ripe old age of 81) years)
The Pobjoy Mint has announced the issue of 12 new coins on behalf of Ascension Island, British Indian Ocean Territory, British Virgin Islands, Falkland Islands, Isle of Man and South Georgia and South Sandwich Islands.

Each coin features an image from her Majesty’s life.

Ascension Island
- A portrait of the Princess Elizabeth with the infant Prince Charles in her arms 1948
- Features a portrait of Her Majesty following her Accession in 1952.

British Indian Ocean Territory
- Design features a portrait of Her Majesty and Princess Margaret as children on a rocking horse.
- Depicts Her Majesty and H. M. Queen Elizabeth the Queen Mother.

British Virgin Islands
- Features a portrait of Her Majesty in her Golden Jubilee Year
- Shows Her Majesty Queen Elizabeth II mounted on horseback for the Trooping the Colour Ceremony.

Falkland Islands
- Features a portrait of Princess Elizabeth in the uniform of Colonel of the Grenadier Guards
- Design is of a portrait of Her Majesty in her robes as the Sovereign of the Order of the Garter.

Isle of Man
- A Portrait of Her Majesty Queen Elizabeth II on a State visit to Canada in 2010
- Features an image of Her Majesty at her Coronation
South Georgia and South Sandwich Islands.

- Depicts Her Majesty on Christmas Day in 2009
- Image of Queen Elizabeth the Queen Mother and the infant Princess Elizabeth.

All coins have been approved by Buckingham Palace. Each coin features a unique double effigy of the Queen on the obverse. The first effigy is an up to date portrait of Her Majesty, the second is based on a portrait by Mary Gillick that first appeared on the obverse of coins at the start of her reign. The coins are produced in Proof Sterling Silver and Uncirculated Cupro Nickel, with each precious metal coin struck four times to give a stunning proof finish.

Here is a list of the silver coins available:

Ascension Islands 2012 Diamond Jubilee 2 Coin Proof Sterling Silver Set £115.83
Ascension Islands 2012 Diamond Jubilee Infant Charles Proof Sterling Silver £58.29
Ascension Islands 2012 Diamond Jubilee Young Portrait Proof Sterling Silver £58.29

British Indian Ocean Territories 2012 Diamond Jubliee 2 Coin Proof Sterling Silver Set £115.83
British Indian Ocean Territories 2012 Diamond Jubliee Rocking Horse Proof Sterling Silver £58.29
British Indian Ocean Territories 2012 Diamond Jubliee With Queen Mother Proof Sterling Silver £58.29
British Virgin Islands 2012 Diamond Jubilee 2 Coin Proof Sterling Silver Set £115.83
British Virgin Islands 2012 Diamond Jubilee Golden Jubilee Portrait Proof Sterling Silver £58.29
British Virgin Islands 2012 Diamond Jubilee Trooping the Colour Fine Silver 12gm £45.79
British Virgin Islands 2012 Diamond Jubilee Trooping the Colour Proof Sterling Silver £58.29

Falkland Islands 2012 Diamond Jubilee 2 Coin Proof Sterling Silver Set £119.00
Falkland Islands 2012 Diamond Jubilee Grenadier Guards Proof Sterling Silver £59.95
Falkland Islands 2012 Diamond Jubilee Order of the Garter Proof Sterling Silver £59.95

Isle of Man 2012 Diamond Jubilee 2 Coin Proof Sterling Silver Set £115.83
Isle of Man 2012 Diamond Jubilee Coronation Fine Silver 12gm £45.79
Isle of Man 2012 Diamond Jubilee Coronation Proof Sterling Silver £58.29
Isle of Man 2012 Diamond Jubilee Visit to Canada Proof Sterling Silver £58.29

South Georgia and South Sandwich Islands 2012 Diamond Jubilee 2 Coin Proof Sterling Silver Set £115.83
South Georgia and South Sandwich Islands 2012 Diamond Jubilee Christmas Day Proof Sterling Silver £58.29
South Georgia and South Sandwich Islands 2012 Diamond Jubilee With Mother Proof Sterling Silver £58.29

No information is given on the silver content of each coin or of the weight and size.

The Role of Silver in Industry

Silver plays a very important role in industry and it is true to say that without silver, industry as it currently stands would grind to a halt.

Silver is used in great diversity in industry from automobiles to electronics to health to solar cells and much more. This is very much a good excuse for investing in silver quite apart from the jewelry, coin and silver bullion aspect.

Some of the vital uses for silver in industry include the following:

Automobiles
Batteries
Catalysts
Cell Phones
DVDs and other data storage devices
Electrical and electronic switching
Electrical power
Electronics, including computers, screens, cell phones
Food hygiene
Health
Paints and lacquers
Personal care, cosmetics etc.
Photography
Photon voltaics and solar devices
RFIDs
Silver coated Ball bearings
Surgical appliance and sterilization procedures
Textiles & shoes
Water filtration, Purification, sanitization

Although in many industries the amount of silver used for each application can be quite small, the quantity used means that several tons can be used very easily. Take cell phones for example. Although there is only a fraction of an ounce of silver in each phone, average of .35 grams, nevertheless as there are over 5 billion cell phones on the planet that amounts to almost 60 million dollars worth of unrecoverable silver (only about 1 percent of the silver used in discarded cell phones is recovered).

According to the Silver Institute, the total fabrication demand for silver grew by 12.8 % to a 10-year high of 878.8 Million ounces in 2010. In the previous year silvers industrial use grew by 20.7 % to 487.4 Million ounces.

Silver mine production only rose by 2.5 % to 735.9 Million ounces in 2010 however and this was only because it was aided by new projects in Mexico and Argentina.
Mexico, Peru, China and Australia were the biggest producers of silver in 2010. Top silver producing companies in millions of tones were:

BHP Billiton Australia with 46.6,
Fresnillo plc of Mexico 38.6,
KGHM Polska Miedź Poland with 37.3 and
Pan American Silver Corp Canada with 24.3.

Fresnillo and Pan American being the only primary silver producer (Primary means they have mines that mine exclusively silver as distinct from mines that produce silver as a by-product of mining other minerals).

Catalysts are one of the biggest users of silver in industry. A catalyst is a substance that is used to create a chemical process without itself being changed. As such silver is a very important catalyst in the production of ethylene oxide and formaldehyde, essential in the production of plastics, as the silver itself is not affected by the process and can continue to be used over and over again.

Nevertheless it still takes over 150 million ounces to produce the worlds supply of ethylene oxide and formaldehyde. 90 percent of the silver is used in the production of ethylene oxide from ethylene which is the foundation for such things as polyester, used in the textile industry and plastics used for insulation from electrical conductivity and heat (Handles for stoves, pots, keys for computers etc). In addition 25 percent of the ethylene oxide produced is used to manufacture antifreeze coolant for the auto industry.

Formaldehyde is the other chemical used extensively in plastics. Produced by a catalyst reaction from methanol, using silver, formaldehyde is used in adhesives, laminating resins, plywood and particle board. It produces surfaces that are scratch resistant, good for such products as buttons, dinnerware, appliances, handles etc. Also automotive parts and even toys, so silver plays a very important part here also.

Silver is also used in soldering and brazing. It offers safety, strength and high quality joints which other metals cannot match.

Brazing is the term used for joining materials at temperatures over 600 degrees Celsius while soldering is the term for joining at under 600 degrees Celsius. Silver is added to provide a smooth corrosion resistant joint. You can find these joints in many areas such as air conditioning, refrigeration, power distribution as well as the automobile and aeronautical industries.

Silver is a natural antibacterial and so is more frequently used in homes these days to bond copper piping and eliminate the propagation of bacteria as well as replacing the harmful lead based solvers of yesteryear.

In automobiles well over 36 million ounces of silver are used each year.
Silver forms a very significant part of industry and, with the expansion Photon voltaics or solar devices and silver nano particles we can expect a continuing expansion of silver being used in industry. This will only contribute in no small measure to the value of silver over the coming years. Let's hope that enough silver will be produced out of the ground to support that demand.

Silver in the Medical Profession & Health

The healing properties of silver have been known for a long time. August personages such as Hippocrates, considered the father of modern medicine, was well aware of silver’s anti disease properties and healing qualities. The Phoenicians also kept their water and other liquids such as wine in silver containers as a way of keeping them fresh. Silvers anti-bacterial properties include, interrupting the bacteria cell's ability to form the chemical bonds necessary to its survival. As these bonds are essential to the bacteria’s survival when it meets silver it then falls apart.

Silver ionised bandages are becoming more popular for burns and wounds as they prevent bacterial growth and help to speed the healing process.

One can buy colloidal silver (10-14ppm.mg/L). This is a very minute solution of silver in spring or sterilised water and is used as a germicide and disinfectant. It is also reputed to have healing properties if ingested but this is still open to speculation.

In the health sector, silver is also used as a sterilizer for killing harmful bacteria and replacing some of the harsher toxic chemicals.

No very long ago, according to the Silver Institute, "… the FDA approved a breathing tube with a fine coating of silver, after it was established that it reduced the risk of ventilator-associated pneumonia. And that’s just one example of the many roles silver plays in medicine today. It is also added to bandages and wound-dressings, catheters and other medical instruments and is a key part of the technology behind X-rays."

Wound dressings containing silver have been an important aspect of healthcare for more than a century; soldiers in World War I relied heavily upon such dressings. Today, consumer healthcare companies like Johnson & Johnson and others offer their own lines of bandages and ointments that use silver as an active ingredient. Silver has actually been proven to promote the growth of new cells, thereby increasing the rate at which wounds can heal. And, unlike other metals with antimicrobial properties, it is not toxic to humans.

Silver is used as a biocide in hospitals and medical centers. The life-threatening Staph germ called MRSA (Methicillin-resistant Staphylococcus aureus) is often referred to as a "superbug," being resistant to almost all chemical antibiotics. Many hospitals therefore are now employing silver-imbedded equipment including surgical tools, catheters, needles, stethoscopes, furniture, door handles and even paper files.

Silver is used in X-Rays and silver-halide X-rays have been popular for many years. These days digital X-rays are used in many hospitals but both continue to be popular in the western world.

Among its many uses, as an investment, asset storage, exchange system and in industry, silver has proven to be a boon for the medical profession and another good reason to buy silver.

Silver in Green Technology

Silver Nanoparticles

Silver is increasingly used in green technology. Unlike gold, which is used primarily for jewelry, investment and asset storage, silver has a variety of uses and as technology advances more and more use is found for silver in industry and notably now in green technology.

Solar energy is a good example. This is an expanding industry as we turn our attention to more efficient energy sources in order to reduce our carbon footprint on the world.

Silver is used as a primary ingredient in the photovoltaic cells that assimilate the sun’s rays transforming them into energy. In fact 90 % of the crystalline silicon photovoltaic cells (the most common cell) uses silver paste and, according to the Silver Institute, over 100 million ounces of silver are expected to be used in the production of solar energy cells in 2015.

Silver is also used in water purification. Silver is used in water purifier filters to prevent the build up of bacteria and algae and so remove chlorine, trihalomethanes, lead, particulates and odor. The catalytic action of silver, in conjunction with oxygen is a powerful sanitizer virtually eliminating the need for the use of corrosive chlorine and is being used more and more in purification plants. Silver ions are now being ised in preference over the earlier traditional chlorine in many water systems including pools, spas hospitals and community water systems.

A new technology that has arisen also is invisible silvered windows. This is a special transparent coating of silver giving thermal windows the ability to reflect the hot sun and help to retain inner heat inward.

This is an expanding technology also with 250 million square feet of silver coated glass now used in homes across the US. The “low E Squared” double pane windows reflecting up to 95 percent of the suns rays. Is a popular example and there are others.

There are many other areas where silver can and is being used in green technology and the demand for silver is, as a result, only going to increase exponentially in the coming years.

The United Nations adopted the definition of sustainability as:

"Sustainable development meets the needs of the present without compromising future generations' ability to meet their own"

And silver in green technology is doing just that.

Silver Miners Hoard Silver

It is not just silver investors, banks, institutions and collectors that buy silver and hoard it, silver miners hoard silver also.

Many successful mid-tier silver miners have recently been hoarding silver because they believe the price is too deflated. A good example is Endeavour Silver (NYSE: EXK). In the fourth quarter, Endeavour decided to bet on higher future silver prices by holding onto millions of dollars worth of silver and gold. Their report says, and I quote,

"...As a result, the Company sold only 400,000 oz silver and 4,000 oz gold in Q4, 2011 and metal inventories rose to 812,000 silver oz and 3,000 gold oz in bullion and another 168,000 oz silver and 2,400 oz gold recoverable from concentrate..."

A huge jump in inventory for Endeavour, up from 270,536 silver ounces and 2,420 gold ounces at the end of the third quarter resulting in the company now sitting on over 40 million dollars worth of precious mental.

Endeavour Silver holds on to inventory but others, like First majestic Silver do it by buying silver futures.

The chart above shows silver's average selling price from 2006 through 2011, as well as GFMS's target price in 2012. It's notable that the average annual increase in silver over this period is 24%, and that GFMS's 2012 price target is in line with this trend (Chart from StockCharts.com).

Silver is as good as, if not better, than cash and this is a smart strategy for mining companies anxious to get the best price for their silver. Instead of selling for a low price these and many other, companies are holding out for a better future price. A smart strategy! Especially when you consider Thomson Reuters GFMS prediction that the 2012 average silver price to be $45, as investment demand continues to support the silver price absorbing any market surplus.

As in any company, a silver miner's best interest is for the shareholders and that means getting the best return for the capital. Provided the mid term operating expenses can be covered, a lot of cash on the balance sheet is not really needed. Particularly when you consider the fact that increased paper money is eroding the value of cash. It makes more sense to retain ones capital and profits in precious metals instead.

Not that they could not sell right now and make a profit. The baseline profit can be achieved with 15 dollars an ounce. But why settle for 28 or 30 dollars an ounce when you can sit tight and maybe earn 40 or 45 dollars an ounce.

It is easy to see why silver miners are sitting on their hands when it comes to selling silver and is another good reason why it is a smart strategy to buy silver now.

Silver, a future road yet travelled

Where is silver heading in 2012 we might wonder. There are a lot of predictions around for the price of silver in the coming year but perhaps the following may give a clue as to how high the silver price may go.

One factor to look at is the ratio between silver and gold. For hundreds of years the ratio in value was around 15:1 that is 15 ounces of silver would buy one ounce of gold. In recent years, however, this ratio has changed markedly to where it now ranges around 45 to 55 silver ounces needed to buy one ounce of gold. This all started when the gold standard was removed in 1975. Prior to then gold was steady as was silver. As soon as the gold standard was removed the price of gold naturally shot up from a then 35 dollars an ounce to a new range of 1600 to 1800 dollars an ounce over the course of forty years. But silver has not progressed anywhere near the same moving from around 5 dollars an ounce up to the current range of 28 to 32 dollars an ounce. If the trend of silver value had followed gold, silver would be around 105 dollars an ounce now.

Another big disparity in silver of course is the shortage of silver plotted against the low price. The cost of mining silver means that most silver is not mined from silver mines but as a by-product of other mines. As a consequence the silver stocks above ground have been diminishing steadily while the demand for silver industrially has been on the increase with the steady expansion of technology.

The major obstacle holding down the silver price is the constant shorting of silver by four big banks, one of which holds a massive 200 million ounces of paper silver. Collectively the four banks hold more actual ‘paper’ silver than actual silver available.

But if you stretch an elastic band too far it will eventually snap back and shorting a commodity to such an extent is going to eventually cause a massive rebound resulting in a gigantic upswing in the price of silver.

The question of course is when will it be?

There is some feeling among investors that it is almost at breaking point.
So as no one knows exactly when the price of silver will rise now is likely the best time to buy silver.

The question then becomes what type of silver to buy?

There are many types of silver and which is the best to buy will depend on a number of factors, why you are buying silver, how much you can buy and how you want to store it immediately come to mind.

If you buying silver simply to protect your assets then the largest silver bars you can buy is the cheapest way to go. The mark up or premium per ounce is less and they can be stored in bank vaults or with secure storage companies such as the Reserve Vault in Brisbane, Qld.

If you can only afford to buy small quantities at a time there are many bullion companies around Australia where you can buy silver coins or rounds at just over the spot price. How much premium you pay can be negotiated if you are buying larger quantities of coins. The coins are generally one ounce although it is possible to get smaller and larger sizes.

Eitherway, now is definitely the time to buy silver.

Vicksburg National Military Park 5 Oz Silver Uncirculated Coin Launched

The Vicksburg National Military Park five ounce silver uncirculated coin has been launched. The first one went on sale for $204.95 on Thursday 12th January 2012.

This is the forth 2011 uncirculated 2011 coin and the ninth in the overall 'America the Beautiful Five Ounce Silver Uncirculated Coin™' series.

These are quite massive coins and production was delayed by the mint due to production difficulties.

According to CoinNews.net, "The Vicksburg silver uncirculated coin commemorates the national military park located in the state of Mississippi, which is just one of the fifty-six national sites honored in the America the Beautiful coin series between 2010 and 2021."

The 2011-P Vicksburg National Military Park Five Ounce Silver Uncirculated Coin may be ordered directly from the United States Mint either from their website or by calling the mint directly.

Specifications of the silver coin:
Composition: .999 fine silver
Size: 3.0 inch diameter
Weight: 5 ounces
Thickness: 0.16 thickness
Edge letterings: .99 FINE SILVER 5.0 OUNCE
Mintage: 35,000
Designer: Master Designer Thomas Cleveland
Sculpture-Engraver: Joseph Menna

Obverse and reverse are the same as the Vicksburg National Military Park Quarter. i.e., the uncirculated coin has a reverse or tails side featuring the U.S.S. Cairo warship on the Yazoo River as it would have appeared during the Civil War. The obverse design bears John Flanagan's 1932 portrait of George Washington.

Point of interest. Each coin in the series is given an uncirculated finish and a 'P' mint mark of the United States Mint facility in Philadelphia.

The outer packaging holding the encapsulated coin within is black and accompanied by a Certificate of Authenticity.

The first five uncirculated coins in this series honored as follows:
Hot Springs National Park, AR (Sold Out)
Yellowstone National Park, WY (Sold Out)
Yosemite National Park, CA (Sold Out)
Grand Canyon National Park, AZ (Sold Out)
Mount Hood National Forest (sold out on January 11, 2012)

Three of the five 2011-dated uncirculated coins have been launch already with the Chickasaw 5 ounce uncirculated coin following in the first week of February 2012.

The 2011 uncirculated coins Honor:
Gettysburg National Military Park, PA (17,145 of 35,000)
Glacier National Park, MT (14,407 of 35,000)
Olympic National Park, WA (11,260 of 35,000)
Vicksburg National Military Park, MS (newest release)
Chickasaw National Recreation Area, OK (coming in February)
Sales figures listed above are current as of Monday, January 9 2012.

It is noteworthy that these bullion coins are primarily intended for investors and differ from the collector strike launched today. However, the bullion issues do not have the special finish of the uncirculated coin and are also mint mark-free.

The Vicksburg National Military Park 5 Oz Silver Uncirculated Coin would make an excellent addition to any silver collector and, with the price as it is a good time to buy silver.