For more than four thousand years, silver has been regarded as a form of money and store of value.
TOP TEN REASONS TO BUY SILVER
- Buy Low; Silver is Nearly 40% Off All Time High
- Silver Is Liquid and Unattached to Any Debt
- Global Economic Uncertainty Leads Investors into Defensive Commodities (e.g. Silver and Gold)
- Current Central Bank Record Deficits
- Current Overvalued Stock Market
- Silver Is Universal and Will Never Go to Zero
- Silver Is A Great Hedge Against Inflation
- Diversification; Don’t Keep All Your Assets In One Basket, Diversify With Silver!
- Long Term Potential Growth
- Buy an Asset With A Proven Record; Silver Is Up Over 40% In the Last Decade With a Demand Only Increasing.
The gold/silver price ratio is often analyzed by traders and investors looking for buying opportunities. Historically the average ratio of silver compared to gold has been about 15 to 1 (15 ounces of silver would buy 1 ounce of gold). With the current silver to gold ratio being approximately 77 to 1 (77 ounces of silver will buy approximately 1 ounce of gold), many analysts insist that silver is a bargain.
Silver Sales Hit 29-Year Record High In Q3
At near six year lows physical silver is selling fast. We are in a very gloomy economic climate causing investors to seek shelter in tangible assets. The US mint posted coins sales that hit record highs last seen in the late 1980s! Demand for physical silver has exploded, squeezing supply so tightly that the mints across the globe are scrambling to meet orders. Both the US and Canadian Mint had to ration the sales of silver to keep up with increased demand in 2015.
Investment Opportunity of a Lifetime
Silver is 56% below its all-time high giving investors a sense of a bottom and making it an opportune time to buy. Soaring national debt combined with a volatile stock market has prompted many experts to warn of a historic bubble that will soon burst. Famous billionaire investor and business man, Jim Rogers, who in 2007 accurately predicted the mortgage crisis said “we are living in a fool’s paradise” in regards to the free tax payer money that has been given to Wall Street.
The 2008 housing bubble that was the catalyst to the U.S. debt ceiling crisis that led to a major market crash in 2011. During this time gold and silver skyrocketing as investors moved into defensive commodities (e.g. silver or gold) driving up prices. From 2008 silver moved from around $13 per ounce to $43 per ounce in the summer of 2011.
Many leading experts in the financial industry, including Jim Rogers and American billionaire business magnate and investor, Carl Icahn, agree that we are on the verge of another major market collapse that could be worse than 2008.
This is another reason why experts claim that silver is the sleeping giant about to wake. This year silver has been trading at a price that is far under production cost, perhaps explaining why JP Morgan is loading up on the shiny precious metal, purchasing over 50 million ounces of silver since 2012.
Industrial, Commercial, and Consumer Demand
As silver continues to boom for industrial uses, less of the metal is available for physical bullion for investment. Currently we’re seeing a surge of applications for silver-based biocides in all areas: industrial, commercial and consumer. New products are being introduced almost daily. Established companies are incorporating silver based products in current lines – clothing, refrigerators, mobile phones, computers, washing machines, vacuum cleaners, keyboards, countertops, furniture handles and more. The newest trend is the use of nano-silver particles to deliver silver ions.
China currently has a commitment to install 100 gigawatts of solar by 2020 to fight smog and pollution. This short 5 year plan, claims that in order to meet their goal, they must accumulate 731.6 million ounces of silver. This is very likely a prime explanation as to why China has been buying extraordinary amounts of silver. The Chinese project will require more silver consumption than what they produce as a nation, giving great expectations that the silver price will be dramatically impacted.
The expansion of the middle classes in emerging economies aspiring to Western lifestyles and products may also contribute to a long-term rise in industrial and jewelry usage.
Hedge Against Financial Stress
Silver, like all precious metals, may be used as a hedge against inflation, deflation or devaluation. As Joe Foster, portfolio manager of the New York – based Van Eck International Gold Fund, explained in September 2010: “The currencies of all the major countries, including ours, are under severe pressure because of massive government deficits. The more money that is pumped into these economies – the printing of money basically – then the less valuable the currencies become.”
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