If you’ve seen people talking about why silver is now a better investment than ever before and wondered what they mean, you’ll hear references to many things that make this prophecy an ever increasing reality.
In this post we’re going to briefly consider the economy and how that affects silver.
You’re probably aware that there are no new silver mines opening and that the silver mines there are have been largely depleted. This underlays the whole situation and means that because silver gets used in many processes and is not being discovered fast enough to replace it.
So, on to the economy – in particular the value of the dollar.
You may think that there’s not much difference between putting $1000 of cash in the bank for 30 years and holding on to $1000 of silver for 30 years – but due to inflation and socio-economic fluctuations, you’ll find that even if inflation and percentage of interest on your money might seem like it would increase in value over those years, but in reality what’s more likely is that even if the interest on your money meant the amount increased, what you could buy with it in 30 years wouldn’t really have changed (because prices go up constantly too).
With your silver – the demand outstrips supply and your silver would become increasingly more valuable over those years and end up giving you many times more real value in what the silver is worth.
The current climate sees the US dollar becoming increasingly less valuable. With rumours that global forces are intentially trying to tank the dollar in favour of using other currencies as the standard for quoting prices, the outlook for the dollar is not good.
Historically when this situation occurs people (the money) turns to precious metals and gem stones.
Silver, currently at around $20 an ounce has previously been to over $60 an ounce when the dollar was weak.
The future looks to see this situation on even bigger scales.
Andy
{ 2 comments… read them below or add one }
Andy,
what will be the resale value of silver. as we will get good resale value of gold.
Hi Rushali,
That’s the best bit about going for silver – it will rise in price faster than gold and because a similar size amount to gold is comparatively cheaper – it’s easier to sell.
Long term – it’s possible that silver will become worth more than gold as less and less of it is physically available, but short to medium term it will rise faster than gold, so what you can currently buy for $30 could very likely be worth $100 in less than a year, depending on how fast the US dollar goes down hill – which it’s already doing but it could easily change dramatically due to political events.
Andy