Silver is a very interesting investment, just like gold. Both are monetary metals. But unlike gold, which is primarily a monetary metal, silver is also an industrial metal with many, many uses! Add to the fact that silver investment demand is growing at as astonishing rate, and you have one absolutely compelling investment opportunity.
There is a reason Robert Kiyosaki has dubbed silver "The Best Opportunity I Have Ever Seen."Credit: APMEX.com
What is Silver?
Well, I didn't pay attention in chemistry but...I've always known silver was shiny stuff! Silver is a metallic chemical element with the chemical symbol AG and atomic number 47. According to The Silver Institute, Silver has the highest electrical conductivity of any element and the highest thermal conductivity of any metal. That is VERY important, because this means it is perfect for use in many industrial applications.
*There is no metal lsubstitute for silver, except gold. However the price of gold is currently much more higher than silver. Only if the silver price surpasses the gold price, would people consider using gold for current silver uses.
The Uses of Silver
You name it - Batteries, Solar Panels, Jewelry, silverware, coins, photography, medical applications, dentistry, etc. There is a long list for the uses of silver but it is primarily used today for investment purposes and in factories. Check out The Silver Institute website for more uses and info.
Why Invest in Silver?
Because quite simply, demand is growing (especially coins) and supply is dwindling. Now that the monetary aspect of the metal has really come into play, with Quantitive Easening and inflation fears thrown in the equation...this presents a rare opportunity.
Although gold is seen as the king of precious metals, it shouldn't be. Gold has primarily one use besides jewelery, and that is investment or hoarding. Silver is a whole 'nother story. If we are headed for inflation sometime in the future, which I believe we are, then we could be looking at a potential silver shortage.
Ways to Invest in Silver
Here are just a couple:
1) The coins or bullion - Buy online. Dealers such as APMex.com or Kitco.com are a pretty good bet.
2) Buy the stocks - Look up companies that mine the metal. As the price increases, the profit margins of these companies typically does as well. Do your due dilligence.
3) Buy Jewelry - Buying gold and silver jewelry isn't thought of as an investment by many, but it certainly is! If the price of gold and silver rises in the next few years, as I believe it will, so will your jewelry.
4) Buy ETF, Mutual Funds, or Futures.
The price of silver is VERY volatile, so investing in this metal is not for the faint of heart. I have been a buyer since it was in the low-20's. The price then shot up to $49, only to crash down to earth around $30, where it is today. It's important to think long-term and not get caught up in the day-to-day fluctuations in price!
Long-term I believe Silver could be worth well over $250. This is based on a gold price of at least $2,500. Considering that the average long-term ratio of the price of gold to silver is 16 to 1, I think this is reasonable. With gold at $5k, which many experts are predicting, that puts silver at $312.
Silver could even be worth upwards of $1,000 an ounce one day! Then we could be looking at the next huge bubble.
Think I'M crazy? Robert Kiyosaki, author of the best-selling Rich Dad Poor Dad, recently predicted a $6,000 an ounce price!
I wish you the best of luck in your investing.
Credit: APMEX.comCredit: APMEX.com