To invest in silver means to make one of the smartest decisions among investors today. Many people are unaware of the benefits of investing in silver. Silver is quite possibly the most undervalued asset in the world right now, and with so few people in the know it’s a great time to buy. I’ve outlined the top 5 reasons why silver is a great investment.
• Shortage – Those who want to invest in silver need to know that a major shortage exists right now. Since it is an industrial metal, most of it has been consumed in electronics, batteries, water filters, solar panels, etc. This provides a great opportunity for higher prices to those investing in silver.
• Industrial Demand – Over the past 30 or so years, most of the above ground supplies have been diminished to shockingly low levels. The levels have gotten so low in fact that the USGS stated that silver would be the first element to go extinct. Demand for solar panels is huge and is weighing heavily on the market.
• Investor Demand – People who invest in silver have driven the U.S. Mint to stop production of certain coins due to the demand. In January, 2010 the U.S. Mint produced the most American Silver Eagle coins in its history.
• Price Suppression- To invest in silver right now could mean a massive price explosion in the near future due to price suppression by banks. It is widely known in the silver market that large banks have been shorting the silver market, thereby allowing them to push the prices down. The demand for silver will eventually lead to the end of the price suppression, and will make those investing in silver very happy.
• Paper Silver – The amount of silver sitting in vaults around the world is leveraged 100:1, meaning there is 100 times more paper silver contracts than actual physical silver. With the advent of silver etf’s and Comex contracts with cash settlements, there are way more silver holdings than real silver.
I am really rather excited about seeing the price of silver explode since I’ve been patiently waiting the silver market out for some time. The price of silver has actually increased over 400% since 2000 due to inflation and demand.