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Why Buy Silver Now
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Why Buy Silver Now

Is Now The Right Time To Buy Silver

The prudent and forward thinking Chinese government has been encouraging its citizens to buy both gold and silver for some time now and both metals can be bought quite easily in very small amounts simply by walking into a large shopping mall and making an over the counter purchase.

You might recently have been thinking about starting to buy some silver yourself, either as a means of diversifying your portfolio or perhaps you’ve been looking at the advantages of saving in silver as a store of wealth. But why buy silver now, is it the right time to buy. While you’re pondering the question you might want to look at the following data about silver and decide for yourself.

1 Silver, along with gold is considered to be money and has traditionally been used as such for the past 4000 years only recently being replaced by paper currencies as a means of exchanging goods and services.

2 It’s cheaper than gold. 1oz of silver costs just over $32 at the time of writing and even those on a tight budget putting aside just $1 a day could afford one coin a month.

3 Silver is currently in high demand, not only from savers and investors but also from industry. It has a broad range of commercial purposes including: computers, water purification, jewelry, cell phones, solar panels , RFID chips, batteries, it is even used in for health purposes in the form of colloidal silver. So far there is no known substitute for silver.

4 Running alongside the fact that silver is in high demand is the fact that the world’s above ground silver resources are decreasing. We use more silver than we mine, silver inventories are close to all-time lows and physical silver shortages are predicted at some point in the future.

Is There Potential For Financial Gain

For the above reasons many consider silver to be undervalued and a bargain at its current price. They believe there is great potential for gain over the coming years and that there will be a price explosion at some point in the future as paper currencies continue to lose value and people flock to precious metals and push up the price.

So Should You Buy Silver Now

For those people looking either to hold some silver bullion in their portfolio or start saving in silver in addition to cash and looking to hold it for the long-term, then buying silver now may be a sensible step to take. If you’re looking to invest for a guaranteed quick profit at some point in the near future you might want to stop and look in broader terms at what is currently happening in the economy.

As hopeful as we might like to feel about economic recovery we should also take into consideration the effects of a slow, no or even negative growth economy. In this scenario the industrial demands for silver will likely decrease due to a reduction in consumer purchasing power and a possible fall in price for silver. Many financial analysts believe we may experience a period of deflation before inflation.

Whatever the economic future holds just looking at the above data alone suggests that at its current price it is undervalued and holds the potential for possible long-term gains for those who start accumulating now on a dollar cost average basis. It may be unwise to use leverage in the current climate of uncertainty and note that historically it has been volatile compared with gold. But is now the right time to buy silver, it certainly could be.


Street Talk

Hi Cynthia, yes gold has definitely kept up with inflation. Hold on to it if you can though, although nothing can be guaranteed we may yet see some interesting price moves upwards.

Reply
  about 7 years ago

Penny, If the Chinese government has its citizens buying up silver and gold, the sheer volume of people should push the price up steadily. Interesting side effect? That puts the current price firmly in the realm of politics. For the Chinese government can change the price instantly by simply suggesting, "Sell 10% This Month!" That said, having had gold items to Sell for the Melt Value certainly helped me out the past few years. blessings, Cynthia

Reply
  about 7 years ago

I've been thinking of investing in silver but would prefer not to go through a big broker. Any ideas?

Reply
  about 7 years ago

Hi John, if you have a quick read through my article 'Are Gold And Silver Wise Investments For 2012' I talk about various ways you can buy silver without needing to go through a broker. The easiest way is to find a reputable bullion dealer near you and buy some Maple Leaf or American Eagle coins over the counter. Alternatively you could buy them online from somewhere like Apmex and have them delivered. A lot of people like to hold the 'physical' metal itself to keep it outside the financial system, but if you don't like the idea of home storage have a look at BullionVault or GoldMoney, where you can start buying in small amounts. Again check the article for the pro's and con's of doing it this way. I hope this helps. Thank you for your comment.

Reply
  about 7 years ago
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