The only way to truly diversify ones portfolio is buy silver and other precious metals. Having a diversified precious metals portfolio is important if you wish to increase the portfolio’s value and strengthen it against inflation. While stocks, bonds and CD’s are often the defaulted paper investments of choice, they are merely backed by the U.S. dollar, an ever weakening fiat currency. To buy silver is to invest in a tangible precious metal asset that is scarce and cannot just be printed at the direction of the Federal Reserve.
Investment brokers and analysts have been stressing the importance of maintaining a diverse investment portfolio for years. Smart money investors know that the only way to diversify an investment portfolio is to buy silver and other precious metals. Silver is a wealth-preserving asset that is unique among precious metals. Silver is a highly-utilized metals found prevalent in manufacturing electronics due to its high electrical conductivity. Silver has increased 169% in recent years and should continue to rise as manufacturing escalates.
There are 6 contributing factors that are fundamentally favoring the undervalued silver market. We believe these driving forces are going to cause the price of silver to dramatically rise over the next few years.
1) Gold to Silver Ratio – Historically the Gold to Silver ratio is 16/1, meaning it takes roughly 16 ounces of silver to purchase one ounce of gold. Today, the Gold/Silver Ratio is approximately 48, proving silver will likely go much higher in value compared to today’s price. Silver will likely outperform gold over the next few years for many of the following reasons indicated below.
2) Inflation — Just as gold is a great inflation hedge, so is silver. As you know silver has been known as the poor man’s gold. The U.S. dollar is lost more than 98% of its purchasing power since its creation. Based on current economic trends and fundamentals, the U.S. is creating trillions of dollars in fiat money of out thin air. Silver is real money just like gold, and will continue to outperform inflation for as long as inflation exists. It is still time to get positioned for the inflation tsunami and load up on silver while you can and while it’s still cheap. There is no end in sight and they plan to print more dollars until their little printing press breaks.
3) Increasing Silver Industrial & Investment Demand — Silver investment demand is on the rise as well and perhaps may soon surpass that of industrial demand. Just like people are turning to gold in the great flight to safety, silver is also a trend setter by demand from investors. Demand for electronics and industrial uses is not going away anytime soon. One of the biggest Countries buying up this precious metal is China. Until recently, the Chinese government did not allow its citizens to buy precious metals. They have done a complete reverse and now highly encourage all of their 1.3 billion citizens to buy for wealth preservation. Their neighbors, India, another country that has a 1 billion plus people have a long history and tradition of buying both gold and silver. We believe silver demand in India will increase as the price of gold rises as well.
4) Dwindling Silver Stock Piles — Going back in history, governments around the world use to have huge silver stock piles. Around the 1950’s, the US government alone had 3.5 billion ounces of silver, the largest stock pile in history. Since then according to the CPM group, just about all of these stock piles have been sold off/consumed. The CPM data shows that world silver stock piles have gone from over 2 billion ounces in 1990 to under 300 million ounces in 2010. Furthermore, silver demand has outpaced silver production by 156% annually for 20 consecutive years. According to Ted butler’s article, Why Silver is more valuable than Gold, more silver has been consumed than produced for over 60 years now. Available silver stockpiles have tanked to an estimated 140 million ounces or only a four-month supply of silver! No matter whose estimates you believe, the real point to get from all of this is that the quantity of silver has been disappearing at an alarming rate while demand is substantially increasing. Conditions are ripe for a shortage. Now contrast this to gold, which after mining for the past 5,000 years, we still have about 90% of all that gold still here with us. All the silver mined over the same period is now mostly gone!
5) Eventual Comex Short Squeeze — Some people just like to play with dynamite for one reason or another. There are a handful of bullion banks that fit this description that hold excessive short positions in both gold and silver. However, the short positions held for silver are much larger, in fact, the largest for any commodity. At varying points, there has been a silver short position 80 times greater than gold short positions. These bullion banks according to Ted Butler and Gata.org are primarily led by JP Morgan and HSBC. Although it is hard to imagine anyone willing to make such stupid bets, the bullion banks known as commercial traders have shorted more than 200 percent of all known silver inventory!
Summary — Silver is perhaps one of the greatest investments one can make at this point in time. Investors looking for a safe and very profitable investment should definitely have silver as a part of their investment portfolio.
Investing in silver is easy. Follow these three simple steps to buy silver today.
Step One: Call United Gold Direct at 1-888-502-3222 and speak with one of our asset protection experts. Our team is highly educated and can respond to your individual questions and needs.
Step Two: Decide which precious metals investment is right for you. Our experts will provide you guidance through every step of the process to help you develop a diverse portfolio. When you buy silver you are diversifying asset holdings of physical precious metals.
Step Three: Once the portfolio options have been explored and your order placed, wire transfer the appropriate amount to United Gold Direct and your order will be in process. Physical metals can be delivered directly to your door, fully insured.
Silver purchase options begin in amounts of $10,000 or more and are suitable for both physical delivery and IRA’s. When silver is used to back your IRA, the metals are physically delivered to the Delaware Depository on your behalf. We work with a variety of IRS-approved custodians to help you buy silver within your self-directed IRA.
United Gold Direct offers numerous methods by which to secure payment for you to get started:
Bank Wire Transfer (the fastest and most secure method of transferring funds).
Direct Deposit or transfer into Comerica Bank
However you decide to buy silver, it’s essential that you get started today. Silver is forecasted to rise dramatically in the months and years ahead. Call today at 1-888-502-3222 to get started!