WHY BUY SILVER?
BUY SILVER FOR THREE IMPORTANT REASONS:
1. The available supply is DECREASING.
2. The worldwide demand – BOTH industrial AND investment – is INCREASING.
3. It costs less than GOLD and therefore is more useful in trade and barter.
Securing your financial future requires that you take a look at the long-term trends in the markets, AND THEN TAKE ACTIONS TO BENEFIT FROM WHAT IS LIKELY TO COME.
When you look at the chart above, you can compare the recent increases in the prices of many commodities – including gold and silver – with the increasing U.S. debt. Does it look to you like the prices of gold and silver are out of line?
One of the main trends facing the global economy is an unfolding BOOM in tangible assets.
Not only is the world population increasing at an accelerating rate, but the percentage of that population that is increasing their consumption of materials is increasing even FASTER!
Add to this trend the horrific and ongoing devaluation of currencies – primarily the U.S. Dollar (the world’s reserve currency) but also that of many other countries around the world, including the impending failure of the Euro!
(The news has been following especially the PIIGS: Portugal, Iceland, Ireland, Greece, and Spain that are receiving bailouts – that is, imaginary, digital Euros – from the European Union AND backed up with more imaginary dollars from the U.S. Fed! Add to these the imminent default looming in Italy.)
Dr. Robert Mundell is a Columbia University professor and Nobel Prize-winning economist. He has been described as the world’s foremost expert currency systems. A recent Wall Street Journal editorial quoted Dr. Mundell’s warning that ALL global fiat currencies are in big trouble:
“We’ve never been in this unstable a position in the entire history of 3,000 years.”
It is a fact that the available supply of silver will decline. While new mining operations continue to be developed, the “EASY silver” is long gone. Take a tour through the western states of the U.S. and you can view dozens of abandoned silver mines. There are hundreds of virtual “ghost towns” that once housed thousands of miners and their families.
The rich veins of silver have played out.
The remaining silver is so dispersed – and the costs of extraction are so high (assuming permits could even be secured!) that the silver will never be mined in quantities matching the prior eras.
Now add to this reality the fact that technology is discovering hundreds of new uses for silver every year.
Silver is an ESSENTIAL component of thousands of industrial processes.
Consider just these three examples:
1. Silver is a critical component in ALL electronic systems. Silver is the best electrical conductor and silver “solder” is REQUIRED in the manufacture of cell phones, computers, cameras, as well as industrial electronics, medical electronics and every other electronic device you can think of. Do you think the demand for electronics is INCREASING? Then the demand for silver must also increase.
2. Silver is a critical component in energy technologies, including solar cells. There is an obvious heightened demand for additional solar energy resources based on the continual upward trend in fossil-fuel energy prices. Added to this is the incentives that governments are adding to stimulate the production of solar technologies. Do you think the worldwide demand for solar technologies is INCREASING? Then the demand for silver must also increase.
3. Silver is a critical component in the processing of food and water-purification and medical devices. Silver has natural anti-bacterial and anti-virus properties. It is thus an important component in the processing of meat, milk, cheese, and baked goods. Silver is unmatched in industrial and municipal water purification. Is the demand for clean food and water INCREASING worldwide? Then the demand for silver must also increase!
For all these reasons, silver MUST continue to increase in cost. (Not that the day to day market price won’t fluctuate.) The long-term trend can ONLY be UP!
Gold is a great store of value. (See the related page, WHY BUY GOLD?) But you are doing yourself a disservice if you own ONLY gold. Why? Because silver has the advantage of wealth building!
Like gold, silver is a legitimate form of money that holds real purchasing power – unlike fiat money or even shares of stock.
But silver is also EASIER to buy! Silver is simply far less expensive than gold – about 40 times less expensive per ounce. This means it is MORE attractive to the AVERAGE buyer. And this also means that the potential “upside” is also higher. (Don’t forget to factor in all the industrial uses mentioned above that are driving demand upward.)
If gold rises to $2,500 per ounce (as predicted by many noted experts) silver could rocket past $100 per ounce.
For reference, consider that silver reached $50 per ounce during the inflation spike of 1980. In today’s inflation-adjusted dollars, that 1980 $50 level equates to $143!)
So if one ounce of gold reaches $2,500 or more, how is that useful when you need food or gas for your car? Gold is a store of wealth but not a very practical currency (except for gram-weight alternatives to one ounce coins.
But silver is a legitimate form of money that carries REAL purchasing power. As the dollar continues to unravel, more and more “regular Americans” will see the need for an alternative form of money, and common sense suggests that they will choose silver.
Silver needs to be included in EVERY investment portfolio!
For information on investing in silver, precious metals, and other strategies that will protect you from the coming hyper-inflation that ALWAYS follows debasement of the currency, see The Elevation Group section of this blog, or click on the image below…