Introduction
In recent times US has been focusing heavily in buying precious metals mainly silver. It is common that when big nations like US is buying silver like hell other smaller developing countries will emulate it. This has caused a dramatic increase in the price of silver since last one year. The price of silver has increased by 30% as compared to that of 17% for gold since Feb’2010. Generally Investors all across the world is advised to maintain at least 5% silver in their portfolio; imaging the ecstasy of those investors who has managed to accumulate silver and gold in their portfolio, truly fantastic.
For many years the demand for silver is US always surpassed its supply. Silver miners were never able to compensate the demand deficit. In such case SU government stepped in and used to flood market depleting their silver reserves. There is also a big forecast by geologists of the world that silver is the first element of the periodic table which is going to get extinct. This is going to happen very soon, may be in next 15 years by 2025. Little for guessing that silver mining will get costlier day by day and its price is sure to surge if demand is stable. It will be best for investors to start accumulating silver as the price are going to go up dramatically (as speculators say).
Silver Vs. Gold Investment
Silver is not only a precious metal for investors its application has found several utilities in industry like glass, electric conductors, normal lead acid batteries, solar panels, mobile hand-sets, computers etc. Till today we do not have an alternative of silver in our industry. Moreover silver is also used in several life saving medicines. The point I am trying to make is, silver is getting scarce and its applications are increasing. Starting from investors to industries to medicine every body desperately needs silver. This is one good reason for investors to accumulate silver than any thing else.
India, China, US all are making big publicity of gold and silver investment. People are encouraged to consider silver and gold bullions as an investment options.
Silver is considered as a poor man’s gold, because as compared to gold which is currently traded at $1200 per ounce, silver trades at just $20 per ounce. Gold is purchased by investors or nations for the sake of accumulating alone but silver has several other applications. This makes silver a better utility metal than gold. Each and every ounce of gold ever mined has either been stored in the central banks of the world or in our personal lockers. Gold finds no use in industry and even negligible in medicine. The price of gold has always been trading at exorbitant prices due to huge imbalance of demand and supply. Even the global trend and its brand name have contributed to its exorbitant pricing. But silver is still traded at very economical price and even small investors can go ahead and start accumulating one. Even champion investors like Warren Buffett was said to have bought $130 million ounce of silver and accumulated.
Since President Bush became the US president till today he has managed to bring a thoroughly thriving nation forma a surplus reserves of $230 billion to a deficit of $13 trillion. Even Mr. Obama stands charred trying to manage this growing debt. It is said that in next five years (2015) the debt will cross $20 trillion mark. This is one of the biggest reasons why people have begun shift their focus towards gold and silver investment. As gold being most undervalued, it has attracted the attention of majority.
Conclusion
Investors who have extra money shall convert all their cash into silver or at least gold. The timing today is just about right, a delayed start will make silver and gold even costlier. Truly speaking the actual price surge is still to come, but do not believe the speculators. We see minor corrections in near future. Wait for that correction and put you money in silver or at least gold.
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