Should I invest in Silver in these times?

Question

Should I invest in Silver in these times?

Answer 1

I would hold.  You will need to see what the FED will do with interest rates over the next year, and if the estimated $1.5 trillion that is scheduled to be lost by banks over the next few years is a reality or just hot air (so far, $300 billion has been put down as losses).

But, I would also suggest looking into the supply and demand of silver.  Right now, there is less than 10 years of above ground reserves left (if we consume at the average rate for the past 20 years).  Governments like the US and China have sold virtually all of their reserves to keep the price down as long as possible to avoid a drastic increase in price.

Since we use silver in virtually all electronics and in the health care industry (not to mention jewelry and old coins), I can see why they would want to manipulate the price through selling reserves to keep prices down.

However, what will happen when there are literally no reserves left?  In other words, what will happen when our demand is so high, that virtually all the silver mined makes up the supply, forcing more and more silver to be melted by people that held on to it.

To give you an idea, the US had 10 billion ounces after WW2 ended in 1945.  Today, that number is around 250 million.

Like I said, I would hold and wait to see which way the economy goes.

Chances are, the next few years will not be good.  That may mean a price increase in silver or not.  All a guess!

Answer 2

It beats these stocks:

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Answer 3

No. For the time being all the commodities have peaked, and with the worlds' economies slowing down, it is not time to invest in the precious metals.

Pay attention to current trends. Don't invest in yesterday's hot movers.