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Perhaps one of the best investments you can make in your lifetime is to buy silver bullion. Silver is in the midst of a major commodity boom. Resources in general are ratcheting higher. Silver, in particular, has a number of unique factors that make it a particularly superior investment relative to other natural resources.
Silver bullion has been the subject of alleged price manipulation. In sum, the accusation is that J.P. Morgan Chase, a curious bedfellow of the Federal Reserve, has been naked short selling massive amounts of paper silver in an effort to contain silver prices. The motive, of course, is to keep the failing U.S. Dollar from looking so pathetic.
However, in 2010 the rumors about the short selling began to widely circulate. Silver began to escape containment. Whereas the historical, “normal” gold to silver price ratio might have been 1:15 or so, silver’s spot price was severely suppressed relative to gold. That ration began to correct. In just nine months from summer 2010 to March 2011, silver bullion had essentially doubled in price. In just about a year’s time, the price had nearly tripled!
Buy Silver Bullion Because The Supply Is Low
One of the reasons is makes so much sense to buy silver bullion is simply the size of the market. The silver market is extremely tiny. Industrial uses consume most of what is mined each year. This leaves relatively little to satisfy investor demand. Moreover, above-ground silver stockpiles are said to be at twenty or thirty year lows. With such a surge in interest, and such a small market, it doesn’t take much buying pressure to push prices higher. This creates an excellent investment opportunity.
In addition, silver has also been the target of a number of new investment vehicles. Chief among these are various exchange traded funds (ETFs). One of the largest is SLV, or iShares Silver Trust. Out of convenience, investors who know very little about silver can readily purchase shares in an ETF silver fund. Someone may not even know where to buy physical silver, but they can purchase “silver” through an online transaction. The ETF in turn stockpiles silver. The huge inflow of cash into these ETFs is further gobbling up bullion. SLV alone has taken hundreds of millions of ounces off the market! So, getting bullion direct from a reliable supplier will give you some of an increasingly scarce commodity.
Buy Silver Bullion Because The Demand Is High
You also want to buy silver bullion because of demand. Juxtaposed against vanishing supply is growing demand. Demand is projected to remain strong from both industrial and investor needs. This has already put silver bullion demand above mine output.
Astute nations, such as China, are actually encouraging their citizens to buy precious metals. It is further reported that Chinese mine workers are taking at least some of their pay in precious metals. Whereas folks in India have always treasured gold jewelry, the people are now turning to precious metals for investment purposes.
On top of investor demand, silver is a key metal used by industry. As developing nations seek to satisfy the increased living standard of their people, the need for silver in the various gadgets and luxuries of life rises. Silver is hard to replace in industrial application, as it has very beneficial properties. It is excellent at conducting electricity and heat. In addition to great conductive properties, it is remarkably reflective as well. It is strong, yet malleable. On top of all of this, silver has interesting anti-bacterial properties and is prominent in products such as colloidal silver.
Buy Silver Bullion Because It’s An Unassailable Store Of Value & Wealth
It’s important to buy silver bullion as a form of real money. Fiat currencies around the world are losing their favor. This sends informed people looking for real assets. Chief among these are the precious metals. Silver is known as the “poor man’s gold.” Silver is simply an affordable hard asset, at least for now, and is convenient if needed to be used for trade, payment, bartering, and so on. Silver enjoys worldwide acceptance and appeal, unlike the pieces of paper in your wallet. In fact, Federal Reserve Notes are not only losing popularity with foreign countries, they are also losing purchasing power even as inflation overtakes the necessities of life and pushes prices higher.
Buy Silver Bullion And Make Sure You Get It In Your Hands
Be sure to buy silver bullion before you buy any proxy for it. In fact, I don’t buy “paper” silver at all. One hundred percent of my silver allocation is either in physical metal or in mining stocks. I either want the real thing, or the leverage of miners who produce the real thing. ETFs are ultimately intended to be redeemed in the native currency, as demonstrated by the massive quantity required if you want physical delivery. There could be risk in the amount of bullion backing the investment. Further, while more funny money is better than less, I’d rather own a piece of the companies producing the real thing, as well as buy silver bullion outright.
