www.euporos.ch From the Greek : meaning rich, ingenious, wealthy - PDF document

T H E P HYS I C A L S I LV E R S P E C I A L I S T Let your money bring a return on investment safely www.euporos.ch

From the Greek : εὔ ·π ορος meaning rich, ingenious, wealthy Euporos SA was formed in Switzerland creetness of its transactions, as well as the speed of delivery, make it a lea- on 31 August 2010 and is listed in the ding company in the physical silver Valais Central trade register (CHE- market in Francophone Europe. 115.945.571) as an international com- pany trading in precious metals. Precious metals are an excellent in- Euporos SA is a member of the Self-Re- vestment, the ideal protection against gulatory Organisation (SRO) of Private inflation and a refuge stock against Asset Managers (Organisme d’auto - bank failures and sovereign bankruptcy. régulation des gérants de patrimoine, OAR-G). Although there are many gold mer- chants, silver is harder to find. The Euporos.ch website has obtained the Trusted Shops label. This certifi- Euporos SA is able to supply large quantities, thus becoming “THE spe- cation covers 70 high-quality criteria, cialist in physical silver” . such as price transparency, customer Gold and silver ingots and coins are service, data protection and legal com- pliance. shipped all over the world or stored under high security in Switzerland. Headed by Louis Schneider, the com- The “Top Quality Swiss Made” nature pany has a team able to support you at every step of your investment. of its products, the reliability and dis- Euporos SA avenue de la gare 5 1950 Sion SWITZERLAND Contact : Phone : 0041 275 66 66 66 Fax : 0041 275 66 72 73 contact @ euporos.ch www.euporos.ch 2

Why invest in precious metals ? Precious metals are a safe and profi- Price of an ounce of silver 2001-2013 table investment over the medium and long term, protecting against the risk of inflation and/or collapse of the financial system. The price of gold will keep going up, and even more so the price of silver! A secure Bank notes, investment a recognition of debt doomed Gold and silver cannot go bankrupt: they constitute a value in themselves, to failure immutable over thousands of years, in contrast to bank notes which are only paper. The collapse of the monetary system is only a question of time, because Precious metals cannot be affected by inflation or any monetary reform. usury produces debt, then excessive debt, and finally cessation of pay- A kilo of gold will always be a kilo with its intrinsic value, whereas “Paper ments. Debt growth is produced by interest money eventually returns to its intrinsic value – zero” (Voltaire). – and compounded interest (that is, interest on interest) causes debt to Since autumn 2008, more and more investors are turning to precious me- grow. tals to safeguard their capital. This trend is strengthening year by year. www.euporos.ch 3

Destocking by central banks The main central banks have sold large quantities of gold since the Such a gigantic house of cards – this abandonment of the gold-convertibi- system runs people, businesses and lity of currencies in 1971, thus gene- governments into debt, leading to rating major downward pressure on bankruptcy. gold prices. This is why it is certain that the paper- In 1945, 68 % of the world’s gold was money system, founded on debt, will held by Western central banks. In collapse. This has already happened 2003 the figure was 20 %. dozens of times in the past. Today it is near 0 %. These banks the- Government borrowing carries the refore have no ways left of reducing risk of payment default. Kenneth Rogoff, the price of gold through additional author of the book This Time Is Diffe- sales, especially with some Asian rent: Eight Centuries of Financial countries increasingly hoarding the Folly (2010), studied hundreds of fi- metal. nancial crises in 66 countries over the course of eight centuries and found Investor demand that State failures are frequent. The reduced size of the market (US$ Since the 15th century, 609 curren- 6 trillion) does not correspond to the cies have been withdrawn from circu- sums invested in the equity and bond lation, 153 of them destroyed by markets (US$ 40 trillion and US$ 110 hyperinflation. trillion, respectively). If the equity or bond markets were to crash, capital Gold, a safe stock would flee to gold, causing a dizzying climb in its price. Gold extraction is declining as mines Just imagine what would happen to become depleted. The exploration of the price of silver, when you realize new reserves is very costly: it takes on that the silver market is even smaller average two to five years to begin (US$ 0.03 trillion)! constructing a mine after the disco- very of a sufficiently promising gold deposit. 4

What you need to know about the fractional reserve principle The main commodities market (COMEX in New York) is incapable of delive- ring all futures sales as they come due, because its stocks of gold and 7 reasons to silver represent only a fraction of the total volume of transactions. So put your trust long, however, as speculators are happy being paid their profits in US in the silver metal dollars, the "fractional reserve” of the metal can suffjce. But if too many people at once ever demanded phy- ◗ Silver is five times scarcer than gold. sical delivery of the metal, this mar- ◗ Silver mines will be exhausted by ket would go bust. This fractional about 2025/2030. reserve system is also practiced by ◗ There will be no more reserves left in certain Exchange-Traded Funds (ETFs). stock within a very few years. They have One US bank alone "short sells” a shrunk from 10 million ounces to 1 mil- third of the world’s annual gold pro- lion in 60 years. duction. ◗ Industry and medicine consume large Any single physical silver ingot is quantities of silver: mobile phones, sold 50 times on paper. This levera- computers, cars, solar panels... This ging will fail the day that sellers of silver is rarely recycled. paper certificates can no longer ho- ◗ The recycling of old coins and silver- nour the demands for physical deli- ware is gradually dwindling. very, as their “fractional reserves” ◗ Silver has stronger upward price-po- will have become insufficient, due tential than gold. In October 2014 the to the depletion of available global ratio was 1:71, whereas the historical reserves. average is 1:15, i.e., one ounce of gold should be worth 15 ounces of silver. ◗ Silver is a little-known investment. Only a few well-informed people hoard it. Its value is therefore underestimated. www.euporos.ch 5

Silver will cost more than gold Between 1900 and 2000, world gold stocks rose from 1 billion ounces to 5 billion, as the gold extracted from mines was hardly ever consumed but was hoarded in the form of ingots and jewellery. In contrast, over the same period of time, silver reserves declined from 12 billion to 1 billion. Part of the production of this metal was consumed by industry, without being recycled. Silver is used for, among others, microelectronics in cars, computers, mobile phones, solar panels, and so on. In 1900 there was 12 times more silver than gold, whereas in 2010 there was 5 times less silver than gold. As silver is 5 times more scarce, it has a higher intrinsic value than gold. But then why is the price of silver so much lower than gold? Silver prices are kept artificially low Global reserves of gold and silver by a few American banks which sell, 1900-2025 (billion ounces). on paper, metal that they do not at all possess. As needed, they dip into glo- bal reserves to satisfy the physical delivery requirements of the odd in- vestor here or there. But physical re- GOLD serves of this metal are continuously shrinking, as industrial needs are greater than mine output. The short- SILVER fall is in the order of 150 million ounces a year. Some 965 million ounces remained at the beginning of 2010 (part of it held by long-term in- As a result, available reserves will vestors, therefore unavailable for in- have disappeared by about 2017. dustrial consumption). 6