Is it wise to invest in Silver?

Question

Is it wise to invest in Silver?

Answer 1

Yes, But invest by buying stocks of silver producing companies , but don't do it until the beginning of Sept.

Answer 2

How does it fit into your overall asset allocation?

If you invest 5% of your assets you should be OK. But more than that would be risky.

If you don't know what an asset allocation is, go here:

http://www.saveyournestegg.com/diy.html

Answer 3

yeah id recommand gold

Answer 4

I don't think silver will necessarily go up in price during bad economic times.  Unlike gold, silver fell in price during the 1930's depression.  

Neither silver nor gold are used to back any currencies now.  And if there is prolonged deflation due to debt destruction.   Then both silver and gold may go down in price.

Perhaps silver will go up in price if the economy manages to recover and begin to grow again.  But in that case, stocks probably would be a better investment than silver.

If you expect a lot of price inflation in the near future.  Then perhaps silver, gold, oil, land, and any other physical goods would be a good investment.  Because inflation destroys the value of money, but the value of physical goods remains the same or even increases.

Answer 5

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Answer 6

Yes right now is a really good time to buy silver. There are many reasons to do so. Gold doesnt do as well as silver for many reasons. This is fom one of the medal dealers website and this is 100% correct....Click on the links Ive included at the end of this post.

First, silver has always produced a greater percentage increase during precious metals bull markets. In some precious metals bull markets, silver has tripled in price while gold has doubled. In some moves, silver rose four times while gold doubled in price. Additionally, silver has more industrial applications than gold does, with more uses being developed.

Industrial uses provide an underpinning to the price of silver. So great is the industrial demand for silver that mine production and secondary recovery have fallen short of industrial demand since 1990. According to CPM Group, a New York metals consultancy, between 1990 and 2003 new production and secondary recovery fell 1,899.9 million ounces short of meeting industrial demand. Add in the silver used for coinage, and the 1990-2003 overall deficit swells to 2,214 million ounces.

Not only has production and secondary recovery failed to meet demand each year of the last fifteen years, but aboveground supplies are critically short. Some analysts say that supply will fall far short of meeting demand over the next decade, and that much higher silver prices will be the result. According to accepted statistics, more gold rests in the vaults of the world's central banks than there is aboveground silver.

The drop in reported silver holdings around the world shows just how much the production deficit has eaten into aboveground supplies. In 1995, Comex stocks stood at 260 million ounces; today Comex stocks are struggling to stay above 100 million ounces. In 1991, estimated silver inventories in London and Zurich were 350 million ounces; today that number is closer to 50 million ounces. In 1980, world governmental silver stockpiles totaled some 325 million ounces; today, few governments hold any silver.

Finally, many people think first of gold when the subject of "hard money" arises. Yet, more people have used silver for money than have used gold. In something like fourteen languages, the words for silver and money are the same. In the United States, gold coins ceased to circulate as money with Roosevelt's 1933 call-in. However, the U.S. Mint continued to turn out silver coins until 1965.

Throughout history, silver has served mankind as a primary monetary metal. It is durable, divisible, convenient, has utility value, and cannot be created by fiat.

However, unlike its fellow monetary metal—gold—silver is most commonly used today as an industrial commodity. Industrial demand for silver has grown consistently for the past three decades because of silver's many unique properties, including its strength, malleability, and ductility...its unparalleled electrical and thermal conductivity...its sensitivity to and high reflectance of light...and its ability to endure extreme temperature ranges.

In addition to its industrial uses and qualities, silver is also used in numerous health care products because of the unique antibacterial characteristics that it possesses. The "Silver Bullet" is used by hospitals to prevent bacterial infections in burn victims. Wound dressings and other wound care products incorporate a layer of fabric containing silver for prevention of secondary infections. In a world that is showing increasing concern about the spreading of disease and potential pandemics, silver is increasingly being tapped for its microbicidal qualities.



It is estimated that more than 95% of all the silver ever mined throughout history has already been consumed by industrial use. That silver is gone forever, unrecoverable at any price. In 1900, there were approximately 12 billion ounces of silver in the world. Today, that figure has fallen to about 300 million ounces of above-ground, refined silver. This means that at current prices, it would only take about four billion dollars to purchase all of the above-ground silver in the world today.

Anyone who follows world headlines is certainly aware of increasing and ever-present geopolitical instability. This, combined with the evolving macroeconomic landscape, can be viewed as bullish catalysts for the silver market. Silver's historic role as a store of value and investment, and its increasing demand in an environment where growing industrial use exceeds available new supplies, further suggest a bullish trend for this versatile metal.

Some of the world's leading financial analysts believe that silver is one of the world's most important commodities, with unparalleled investment opportunity for the future. Silver's unique properties, which make it ideal and essential for global industry, create a situation where there is simply no substitute. In addition, silver prices at times have been extremely volatile, making silver an attractive investment and trading vehicle.

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Answer 7

Precious metal commodities do well in the face of (1) fear in the general market and (2) inflation. With that said, now is a pretty good time to invest in precious metals gold more than silver, but silver as well. However, don't expect huge returns!