Why Buy Silver?
Why buy silver? How do you buy silver? How do you invest in silver? There are many questions to ask when making an investment, and these are some we can help answer. At United Gold Direct, we are the experts on silver investment advice and we enjoy sharing our knowledge with you.
Silver Market & Investment Information
Gold and silver have moved up incredibly over the past 9 years, but historically the ratio of gold to silver is about 1 oz of gold to 15 oz of silver. Currently, 1 oz of gold is equivalent to about 32 oz of silver. This gap is increasing and quickly.
Silver would have to be approximately double its current price, $102.40 to equal an ounce of gold (quotes taken the week of April 25, 2011). According to many financial experts, this statistic is important because in their opinion, silver is grossly undervalued in comparison to gold.
As technology advances, silver is prized for its usefulness as more than just money or currency. As our society becomes more advanced, silver and its magical properties and abilities will increase as well.
In an interview of Michael J. MacDonald of Wholesale Gold Group by Deborah K. Moskowitz, people looking for an investment vehicle should look to silver for the following reasons:
• Since 2000, global mining production has been on a steady decline every year.
• Silver use touches almost every aspect of life, whether in solar panels, pesticides or computers. There is no metal that has been able to replace it.
• With the imminent collapse of the dollar, transactions will be bartered in privately held silver coins, not gold.
• Silver has outperformed the Dow Jones by 400% since 2001.
As a society, we need silver because:
The United States Geological online survey speaks to the multiple uses of silver in many industrial applications, jewelry and flatware, automobiles and photography, among others. Electrical conductivity, malleability, and reflectivity are among the valuable and useful physical properties of silver. Miniature antennas in Radio Frequency Identification Devices (RFIDs) that are often used in casino chips, freeway toll transponders, speed purchase devices, passports, and on packages to keep track of shipments are all made of silver.
The benefits of investing in this precious metal, based on analysis of historical, financial and utilitarian uses of silver and how and why it makes a viable commodity in which to invest are:
1.For fifteen consecutive years, demand of silver had outpaced its supply. Deficits of silver have run as high as 200 million ounces annually in boom years, and, in years of recession such as we face currently, as low as 70 million ounces.
2.Less silver bullion exists for investment than gold bullion. The wise investor would see this one fact as reason to include silver as a commodity in one’s portfolio.
3.Diversifying investment assets and preserving your wealth against inflation is a wise tactic for the average investor and silver can be an effective means of accomplishing this task. Taking into account the varying value of silver, its intrinsic value is immutable and permanent. Many experts suggest silver should be included in investment portfolios.
4.Among commodity markets, the silver market specifically has outperformed both the stock and bond markets and shows no signs of reversal. If your currency investment was in gold you would have seen a 190% return on your investment since 2000. However, your investment into silver would have netted a 240% return. This shift is significant, yet few private investors are aware of this fundamental shift in the marketplace.
5.Unfunded liabilities like Social Security and Medicare increase the $10 trillion US debt to a deficit of $52 trillion. This could possibly lead to the eventual weakening and collapse of the dollar while silver will continue to rise.
The bigger picture as evidenced by the explanations above show why silver is an excellent investment for a company or individual choosing to diversify its portfolio. Silver market information provides a great reason as to why invest in silver. The facts about silver bullion, silver coins, silver bars, and silver dollars stand on their own. United Gold Direct is an expert on silver investment information, and we would love to put our knowledge to use for you.