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Monday, June 6, 2011

Seven reasons to buy silver this year

By Graham Vidler
There is a growing body of evidence, ominous economic indicators and precious metals expert opinion that supports the notion that silver is massively undervalued. If correct, we could be about to see a silver and gold boom of unprecedented levels.

Are you positioned to take advantage of this boom and secure the financial well-being for you and your family? Here is a snippet of the indicators that the silver price is on the verge of an explosion:

The US Dollar - The phenomenal printing of money that is being conducted under the banner of Quantitative Easing and the resultant inflation this will cause (even hyperinflation), could trigger a rush to the security of precious metals, driving up the silver price.

The Plight of the Euro - The massive bailouts that are in motion to prevent countries like Greece, Ireland, Portugal and soon to be Spain from defaulting. Is this just an interim measure to an inevitable collapse of the Euro?

The Scarcity of Silver for Investment - Only a fraction of the amount of silver is available as bullion for investment. If there is a rush to Silver, the demand on such a small supply will cause prices to skyrocket.

Silver is Being Consumed - Unlike gold, silver is consumed in many industrial applications, including the ever-increasing boom in electronics. Most of this is uneconomical to recover, meaning global reserves of silver are shrinking. The fundamental economic principle of supply and demand means silver should be priced substantially higher than it is currently.

The China Factor - With the standard of living on the rise, this increases the demand for electronics and therefore silver consumption. China also represents a phenomenal pool of potential investors, a strategy actively promoted by their government.

The Manipulation of the Silver (and Gold) Price - There is a growing body of evidence supporting the notion that the silver price is being suppressed to maintain confidence in the US dollar, however the resources on hand to enable this to continue are running out. On top of this, the short selling practices conducted by the major banks to influence the silver price will be exposed and the public will demand an end to this practice.

Silver is Grossly Undervalued - A look back in history at the gold silver ratio shows that in the last 100 years this ratio is way too high and there are no good reasons for this. On top of that, the silver price has not kept pace with inflation and it should be much higher right now.

It is clear that silver is undervalued right now and there are looming economic conditions that simply will not permit this to continue. It is only a matter of time before silver must climb to its true value, as it has done time and time again throughout history.

For this reason alone, buying silver represents and amazing potential for capital gains. With the looming instability of the US dollar, silver also provides an excellent medium to protect against currency debasement (through inflation), protecting your wealth.

Are you informed and ready to protect your hard-earned assets? If any of this information comes as a surprise to you, we urge you to get yourself educated as soon as possible and determine if an investment in silver is the right option for you and your situation.
courtesy : EzineArticles.com

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