5 Reasons Why Buying Silver Is In Your Best Interest | Investments

5 Reasons Why Buying Silver Is In Your Best Interest

Written by Dennis Beaman

Thursday, 18 March 2010 19:37

by DennisBeaman

Don't get me wrong, I'm not against buying gold. But if you want to get the most bang for your buck, you've got to get on a regular silver coin saving strategy NOW! There really is no time to lose and I will give you five reasons:

1. The U.S. Government is bankrupt and when foreign investors finally realize it, we will see double digit inflation and double digit interest rates to go along with our double digit unemployment according to the economist, David Wiedemer, author of the book "Aftershock". If you continue to hold U.S. dollars or dollar-backed assets, you are in for a major loss.

2. Silver supplies above ground worldwide are at their lowest levels in 700 years according to silver guru Ted Butler. The U.S. Mint has to purchase silver on the open market to mint its silver American Eagle coins and had to suspend minting recently due to a shortage. As the demand continues to increase, the price will also, stimulating more demand until frantic buying sets in and prices then go vertical.

3. Gold is much more plentiful than silver. In the current precious metals bull market, silver can be expected to out perform gold. Many experts agree and are expecting a near panic buying frenzy in the near future. Israel Friedman, mentor to silver expert Ted Butler had this to say: (Based upon the estimate of only 500 million ounces of silver available for use)..."the first 100 million ounces of visible silver will disappear at a price of $60 to $100 an ounce. The second 100 million ounces will disappear at $250 an ounce, and the third 100 million ounces will disappear between $300 and the price of gold. We will be left with 200 million ounces of silver which the owners will not be taking profits at any price."

4. If any of the major worldwide currencies collapse, a barter economy may develop. Anticipating gold going to $2000 to $3000 an ounce in such a scenario would make most gold coins unacceptable for everyday purchases. Silver, on the other hand, though, would be much better suited for such use. Even at $200 to $300 an ounce, bags of junk silver would be useful for such a purpose. Pre 1965 dimes, quarters, and half dollars could serve the purpose should the unthinkable happen. Dimes contain approximately 1/10 troy ounce of silver, quarters contain approximately 1/4 troy ounce of silver, and half dollars contain approximately 1/2 troy ounce of silver.

5. Silver has a long history of being used as money. More so than gold. It is possible that the U.S. debt holders may demand a hard-asset for payment. If that happens, the amount of silver and gold the U.S. would need would cause such a silver shortage in the marketplace that the price silver would reach would be unprecedented. China is reported to be accumulating gold and silver. By just shifting a small percentage of the $682 billion into those metals could have a huge market effect.

These are just 5 reasons why many, many people knowledgeable in silver dynamics are predicting higher gains in silver than gold, platinum or palladium in the near future. Other reasons, which will be covered in later articles are the industrial demand for silver, the mining difficulties of silver, and the trading of ETF's or Exchange Traded Funds which affect the price of silver as well.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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