Sunday 30 September 2012

Investing in Gold and Silver

By Calvin Quinten


Investing in precious metals has become a necessity for financial security as the global economy struggles to maintain strength. Making matters worse, the United States is in the middle of deficit spending like nobody has ever seen. Although investing in gold and silver is not yet common, it has become the preferred investment for many people who fear that the creation of paper money will not stop until the dollar is worthless.

Sadly, the history of money is that governments print it until it's worthless. Throughout the last thousand years, most episodes of printing money have been followed by periods of inflation or even extreme cases of hyper-inflation, either severely destabilizing the nation's political stability or ending in warfare, dictatorships, or a political collapse.

If you take a look you will see that those who benefited from these unique periods were holders of monetary metals such as silver. Even if you believe these possible outcomes are not likely to happen, ownership of physical silver in the event will provide you the opportunity to not only protect your wealth but appreciate it significantly. Like an insurance policy, while the event probability is low, when failure strikes, the benefits largely outweigh the cost.

Precious metals such as silver offer the ability to posses real money, a physical store of value with the potential for huge gains in the years to come based on it's current trend. Investing in silver with intrisic value will protect your family from the wealth destructive policies of governments and big banks alike.

In precious metals bull markets, investing in silver instead of investing in gold provides better percentage gains because silver generally outperforms gold in those situations. In short, in rising precious metals markets silver proves to be a better investment than gold. Adding to the appeal of silver to investors is the huge--and growing--industrial demand for silver, which means that investing in silver could be profitable for years to come.

The acquisition of silver is much more attainable for the global populations compared to gold. As silver prices continue to rise, investor's will further shift away from other investments such as real estate, stocks, and bonds. The affordability of silver makes it the "common man's gold" as it begins to make news and investment becomes widespread.

In the last two decades alone, the use of silver has increased substantially to include an array of electronic and digital products such as cell phones, cameras, laptops, monitors, etc. Medical appliances use silver due to its anti-microbial properties. Even with all these consumers, the silver is never replenished or returned to stockpiles. As our information age progresses and silver's chemical uniqueness is more fully understood, demand for this irreplaceable metal will only continue to rise, further depleting the current stockpile.

In todays markets, silver appears to be an abundant commodity but thats not the case. The physical markets are actually quite constrained and limited for silver. The current above ground supply of silver is merely a fraction of what it was three decades ago when silver hit an all time high. Supply continues to be limited as consumption continues to grow.

Investing in precious metals, especially silver, is a smart investment for accruing solid and protected assets. Gold and silver bullion is a perfect way to get started for the general consumer. Consider rolling your IRA into precious metals for an added retirement benefit as well. Precious metals will be a strong and stable investment for years to come and should be considered by any serious investor looking to protect his wealth.




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