The opportunity for creating and preserving wealth has never been greater, the owning of these precious metals has provided the average person with the means to create wealth and for the rich to preserve and grow their wealth. This presents a monumental time in our history where the poor has an opportunity to climb themselves out of poverty. Nothing is guaranteed, but the potential is great, particularly for the long term investor.
Historically gold and silver used to be the only true form of money, where these precious metals have significant value as opposed to our current system of paper money which does not have any intrinsic value. As governments perpetually print more money, the value continuous to go down while gold and silver will forever maintain it’s value.
Gold and silver prices will fluctuate from time to time, sometimes significantly as it moves with the markets and seeks to correct itself. These times should not be cause for panic decisions, but for a time to reflect and perhaps seize the opportunity as and when they arise.
These precious metals should be looked upon as an important measure of true wealth, as paper money is unpredictable, unreliable with it’s value undermined by the continuous printing of more money. As cost of living goes up and the value of paper money goes down, we just get sucked deeper into a black hole. Saving money in the bank seems a fruitless endeavour as it doesn’t grow in any way, it just sits there devaluing over time. The longer you leave it in there, the less you will be able to buy with it.
The Case For Investing in Silver (The Poor Man’s Gold)
As I write this in April 2011, the price for silver is £27.64 per ounce, 5 years ago it was £5 per ounce. This presents a fantastic opportunity as the price continues to rise year in, year out. if you feel that you have missed out when the price was £5, take heart that there is still massive potential as the trend continues to grow in the right direction. The only people who are missing out are those who choose not to invest in these precious metals. As gold currently stands at £917.80 per ounce and is also growing steadily, silver is significantly cheaper so it makes sense to invest heavily in silver.
One of the most compelling reasons for investing in silver is the supply and demand factor – there is limited supply and a huge demand for silver as it is used to make hard goods such as computers, mobile phones, household goods, industrial electronics and much more. Silver is continuously consumed and gone forever, couple that with the huge demand from investors. The universal law of supply and demand means that the price can only go no way but up. The possibility of the price sliding back downward is extremely unlikely.
When deciding between gold or silver, I’d say buy both if you have significant amounts of cash, if not, invest most of your savings and disposable income into silver.