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Should you Invest in Silver?

22 November 2011no comments featured

Learn the secrets of how to buy and sell silver.

Growing trends in Industrial, Electronics and Financial Assets could propel current Silver prices to new records!

Learn how to double or triple your MONEY if silver prices return to its previous record price of $49.50 troy once.

For more information,  receive our FREE Silver Investment Guide by filling out the form.

Here are a few key factors that must be understood for how current silver prices could go to $49.50:

America, Inflation & the Rising Price of Silver

Silver investors are becoming more and more concerned with the present global economic situation and particularly with North America. Many Americans and international investors are becoming interested in silver as an investment because they are old enough to remember what it was like back in the 1970′s and why silver super spiked the last time.

Professional precious metals analysts and investors are labeling silver investment as a safe bet with enormous capital growth potential as they are watching and waiting for some sort of a super spike to happen in the current price of silver at any moment, just as it did over 30 years ago.

Below are some of the commonalities between today’s economy, and how it was like the last time the price of silver exploded and some of the new reasons why the silver price trend could rise.

High Unemployment & Inflationary Concerns

The United States has an average 9% unemployment rate. The Fed thinks the answer is to print their way out and create more inflation to stimulate growth. As the Fed continues to print more money, unemployment could continue to rise and the middle class of the United States could continue to vaporize because of inflation. As inflation lowers the nation’s purchasing power, it decreases consumer spending for which accounts for 2/3 of the economy. In other words, as discretionary income is diminished, that may lead to falling demand which would translate to layoffs and higher unemployment and stagnating growth. Silver is a hedge against rising commodity prices as it could rise in tandem with other rising costs. In the 1970′s the US had soaring Consumer Price Index (CPI) numbers (+12%) which lead to crippling unemployment by the mid 70′s (9%). By 1979 CPI soared to almost 15% which equated to almost 11% unemployment within 2 years.

Cognitive Dissonance at the Federal Reserve

Most are acquainted with the idea that the US Federal Reserve must juggle two themes: they need less volatile prices, while at the same time job creation. One of the Federal Reserve Chairman’s mandates has taken lead importance as Ben Bernanke has obviously been more ambitious in his attempt at job creation. Ben seams to be trying to inflate our way out of unemployment as prices in his eyes are stable as he has been denying inflation at all costs. In fact, when he speaks about inflation, his speeches are starting to sound like a factory voice that Steve Jobs put in the first Imac “Inflation is benign…inflation is benign…inflation is benign…inflation is benign…”

Problems in Washington

Just like in the 1970′s the folks in Washington can’t seem to agree on anything. They haven’t been able to accept that good employment and stable prices can co-inhabit the US Economy. History has shown us that rising inflation causes rising unemployment. If you have more individuals producing goods and services, this in and of itself never leads to an environment of overall inflation.

Disproportionate Increase of Money Supply

Look at the times the Federal Reserve has printed more money to inflate the money supply. Each time this has happened, consumer prices have rose and inflation sets in. The following chart shows the potential for hyper-inflation as a result in the drastic increases in money supply since 2009.

Today in America, there is undeniably a very similar economic situation to the 1970′s. Those who chose to invest in silver saw a super spike when the metal skyrocketed in value within a very short period of time. The Fed has only to do one thing: stop printing money and let employment come back. Otherwise, I guess the only smart thing to do if you can’t beat the Fed, would be to join them. Time to buy some outright physical silver or better yet lock the price of 100 ounces for the next few quarters by investing in an option contract paying a premium for as little as $1,000 dollars.

 

 

 

 

 

 

 

 

 

Why invest in Silver?

When speculating on the price of anything one must first study the supply and demand.

Read below to understand more about the limited supply and growing demand of silver and see the fundamental reasons why an increase in the current price of silver may be imminent:

Limited Supply

Every year 1/10 the reserve base of silver worldwide is mined, therefore, there is a real possibility that the world may run out of silver.

The amount of silver in storage has been steadily declining year over year.

A long lag time for the final product to hit the consumer market. In other words, a timely process starting from developing mines, refining silver, and lastly bringing the bullion to the end user.

Growing Demand

The vast majority of technology we use today is dependent in some way on silver.

There are special properties found in silver that are not found in any other metal. Its unique properties as an electrical connector and thermal conductor secure manufacturing demand as it is a material that cannot be easily substituted.

It has been reported by the U.S. Geological Society that the global supply of silver is waning and could be among the first precious metal to be considered extinct. It seems to be that silver will become more rare than gold at some point because of demand.

Because of some of the unique similarities between silver and gold, silver can be used as a cheaper substitute for the more expensive precious metal in many industrial manufacturing processes. As gold becomes more expensive silver demand as a cheaper gold substitute could rise accordingly.

Silver is a versatile consumable precious metal with ubiquitous demand as it is widely used in the manufacturing of popular goods like electronics.

Silver has been used as currency for hundreds of years and is known as an investment for preservation of wealth.

It is easy for investors to take possession of silver as it is available in a variety of forms like Bullion, Coins, Futures, Options or Exchange Traded Funds.

Silver is affordable and as such is affordable by a majority of people. When you have an investment that is affordable by a majority of investors then silver price trends could be higher over the long-term.

There are many affordable ways to capitalize on the rising silver trend or trading the volatility. Financial products like Exchange Traded Funds, Futures, Options, Contracts for Differences (CFD), silver coins or bullion can provide solutions for the investor. However, which one is right for you? Best Market Investment can educate you in regards to which financial product is best for you. In fact, our Free Silver Investment Guide could give you market insight and a greater understanding on how to make money in today’s lucrative  silver industry.

For more information, receive our FREE Gold & Silver Investment Guide by filling out the form. Our guide includes:

  • How to Trade
  • Seasonal Patterns
  • Current Market Fundamentals
  • Key Industry Developments
  • Fund Managers Price Targets
  • How to use Leveraged Financial Products
  • Investment Strategies
  • How to choose a Broker
  • Current and Historic Price Charts
  • Gold Price Charts
  • Trend and Price Predictions

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