Is the silver industry a solid investment?

I have been doing quite a bit of market research lately and my conclusions have lead me to highly distrust the dollar. For several years before I enlisted in the Navy, I have always intended in investing in gold, however, I never made enough money to consistently fund that investment making minimum wage and all. Now that I have a steady income which I can allocate to investments, gold is simply too far out of reach for me. Not only that but it seems far overpriced, with it's value being less than 0 short of platinum. That aside, I know it still has a long way to go before it reaches it's peak.

On the other side of the coin, silver is only /ounce. My research has lead me to speculate that with gold's price skyrocketing out of the average investor's reach, most will look for a more cost effective alternative means of preserving their wealth. My prediction is that the next commodity to see a major bull run is silver. Not only is silver a precious metal fit for storing wealth but it seems to have a wide range of industrial uses which should in turn supplement the demand for it. I have also heard (but am not sure) that the available silver left on the planet is far less than a couple decades ago and that it is even more scarce than gold.

I can also see the industrial demand backfiring on the price of silver. If and when our economy collapses, it would be a wise prediction that the industrial demand for silver will fall because the industries involved with it will have a hard time maintaining the costs to run day to day operations.

With that in mind, I have still been quite bullish in the silver industry. Not only have I been purchasing 1oz silver bullion bars(99.99% purity), but I have also bought shares in Silver Wheaton (NYSE:SLW). It is firm which funds the construction of mines for other businesses with the terms of the contract being that the mine has to sell them back the silver for a set price which I believe is about .00/oz. It then flips that and sells it for over 7 times it's value to distributors. That being said, I think it's rather obvious why I see this as a good investment.

That being said, I'm looking for input on these options which are currently 100% of my new portfolio. I know this breaks the number one rule of investing(don't throw all your eggs in one basket), however, I'm willing to bet that if these investments will not grow, they will at least for the most part, be able to retain their value, unlike the dollar.

The reason why I am steering clear of investing in any dollar based securities, for now at least) is because I have zero faith left in the dollar. It is a fiat currency which is backed by nothing but our GDP which is far exceeded by our county's debt. If my math is correct, currently our country is in so much debt, that even it taxed all American citizens 100% of their income, it wouldn't be enough to cover the bill. With our country's financial health on life support, it will only be a matter of time before the dollar loses it's status as the standard currency for world trade.

Anyways, if you're still with me any comments or constructive criticism on my aggressive investment strategy will be greatly appreciated.
bd. I am only 19 years old making less than 25,000 a year. Although it is all for the most part disposable income, I can not (yet) afford to make that kind of investment.

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I have a bunch of pre-1965 silver dimes and quarters I want to sell for their bullion value. The best deal I can find would pay me 75% of the current silver spot price. So if silver spot is per ounce and I have a dollar of face value to sell I would receive X 0.72338 X 75% = .70. Is that too low? In other words I realize dealers have to make a profit but 25% seems a bit much. Thanks.

Section 9006 of the Healthcare Reform Bill seems to state that "entities" which are observed as self employed, businesses, corporations, etc. must fill out an IRS form 1099 for any gold or silver (not limited to these) coin or bullion purchases totaling over 0 per year. My question is rather simple, does this affect me - an average joe citizen - who simply buys physical silver online to protect my assets in the event the US dollar collapses? Does this bill mean to say that I, must fill out a 1099 if my purchase of silver exceeds 0 in one year?

If not, then does it mean the business I am buying from has to fill out the 1099? And if so, do they include my name or address, or any other identifiable information on that 1099 form that could potentially allow the IRS to monitor how much silver I have?

The wording in the bill is confusing to me, I hear mixed answers from various blogs and forums. I'm only concerned about myself having to fill out a 1099 for buying physical silver online as a private citizen joe shmoe. And if not, I want to also know if the business I buy from that DOES fill out a 1099, does so including any information pertaining to me that could allow the IRS to monitor my silver purchases. (Keep in mind I don't buy big - just 1 ounce or 5 ounce at a time I never spend more than 0 at one time).

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