Why Silver?


More than 90% of people are concerned about rising prices and inflation, and will be looking for ways to protect their money. Silver is a natural choice. As paper money continues to falter, people will buy silver and gold without regard to price, or they will buy simply because prices are going up!

Silver is the only real money that there is. Gold, historically, is just too valuable to use as money if an ounce of gold is worth a year's salary, or a modest home. When gold becomes too expensive, and when paper money fails, silver is the only thing left to use as money. Nothing can replace real silver that you may need to spend on food during a time period of a market crisis. It's even been said by some experts that everyone should consider having at least $5000 worth of silver.

Most people today are trend investors. Silver's price action so far is a good trend, and more than justified by the fundamentals. The amount of actual silver available for investment has been variously estimated as between 60 million to 600 million oz. Or as much as 4 billion oz. if you include all silver jewelry, flatware and tableware.

There are many fundamental reasons why silver will go up in value - 10,000 reasons, since there are probably 10,000 industrial applications that use silver. Even a marginal increase in investor demand could drive prices sky high.

Between July 1, 2003 and November 30, 2006, the price of gold increased approximately 84%, while the price of silver increased more than 200%! The silver price, per ounce, in 2008 averaged a strong $14.98, a nearly 12-percent increase over the 2007 average price of $13.38; the best average annual price since 1980. Some analysts forecast silver may soon surpass $50 per ounce.

There is a compelling argument for silver investing because the economic and monetary fundamentals in place today are even more bullish than the conditions of the 1970's when the silver price exceeded $50 per ounce. The extraordinarily bullish fundamentals of the Silver Market suggest, at current prices, that investing in silver could offer investors one of the single best long-term investments today.

The Wall Street Journal (December 31, 2008), in the Return on Investment Column, stated that silver is one of the ten investments to watch in 2009. “There are many ways in which to invest in silver, from silver bullion in coin or bar form, to exchange-traded funds, to mining company shares, as well as additional investment opportunities."

The historic price ratio of silver to gold shows that about 10 ounces of silver would buy one ounce of gold, a 10:1 ratio. Recently, the ratio is about a 50:1 ratio (with silver at $20/oz., and gold at $1000/oz.) As the silver to gold ratio returns to historic values, from 50:1 to 10:1, you may make over 5 times more money investing in silver, than gold!

Historically, silver has been the most affordable precious metal. It increases your portfolio's diversity by bringing balance because it's value often moves independently of stocks and bonds. It offers liquidity, meaning it's easy to buy and sell. In this fast paced world of electronic investing, silver is a tangible investment that has beauty and artistry you can literally enjoy in the palm of your hand.

Some are saying that the key is to obtain silver anywhere you can while the prices are relatively low. In other words, don't wait for the price to go up! Once the dollar collapses, chances are that nobody will part with their silver... except when they may be buying up all your worldly possessions in return.

Like the dollar, silver is welcome in major investment markets worldwide. You can even include silver in an Individual Retirement Account (IRA).

Note: Since 1997, IRA participants in the United States can invest a portion of their portfolio in silver bullion coins and silver bullion bars. Prior to 1997, the only forms of physical metal approved for investment in IRA's were American Gold and Silver Eagles. With the change, bullion and bullion coins of a fineness equal or exceeding 99.9% became eligible for retirement accounts. While the American Eagle is still the only coin specifically approved for investing, Canadian Silver Maple Leafs and similar soins are also eligible. Pre-1965 US 90% silver coins of any kind are not eligible for IRA's. Only a certified depository can hold your silver IRA investment.

* Please take special note that many experts feel that your physical silver is most protected in a safe at your home.