Is Silver a good Investment?
Is silver a good investment? This is a very common question, and especially so given the current global economic conditions we face. The honest truth is that like any other investment, there are good times to buy silver and times when you should avoid it. Silver bullion is a hedge against inflation and it possesses industrial applications as well as collector demand from an aesthetic standpoint. With this in mind, it would be beneficial to consider the current economic and geopolitical conditions when asking is silver a good investment.
It is safe to say that the global economy is very unstable at this time. Developed economies are being forced to keep their economies liquid and competitive by printing money and devaluing their currencies. Worldwide sovereign debt levels are so high that the next debt crisis is likely just around the corner. All of these issues are being compounded by the fact that politicians continue to fight for power rather than fix things. With no credible plan for reducing deficits and lackluster economic growth figures, it is safe to say that our global economy has many year of struggle ahead before we see any kind of meaningful improvement.
So given these conditions…is silver a good investment?
Silver has an inverse relationship to paper assets such as currencies and bonds so if you’re still asking yourself “is silver a good investment at this time?” the answer is yes. Not only has the US Dollar vs. Gold and Silver been declining in value over the last year, but it appears poised to continue to do so long into the future until some kind of meaningful deficit reduction plan can be put into place without stunting the growth of our economy. There is an even greater threat looming on the horizon should the United States fail on a bond auction. If this were to occur, it is safe to say that the US Dollar would be assaulted on all fronts, driving inflation to record highs. It only makes since to protect your wealth with tangible assets at this time.
Silver vs. Gold
Gold has been showing investors an annualized return of 15% or better every year for the last 10 years. There is no doubt that gold is a desired asset, but now might be the time to acquire silver considering the trend that is taking place with the Gold Silver Ratio. If you read this section you will be educated on how the ratio has returned to 16 on three occasions this century, meaning silver becomes 1/16th the cost of gold. Given the strength of Gold, it is safe to say that 1500/oz prices are here to stay for the long run, meaning silver should reach roughly $80 if the ration returns to 16 once again.
Precious Metals are an ideal asset to own given the uncertain economic and geopolitical conditions we currently face. Whether or not you are adding gold bullion to an investment portfolio, or preparing for retirement by setting up a gold IRA, precious metals such as Gold, Silver Platinum and Palladium have proven to be a secured investment. If you are asking yourself “Where can I buy gold?” Our gold inventory consists of American Buffalo Gold Coins, American Eagle Gold Coins, Austrian Philharmonic Gold Coins, Mexican 50 Peso Gold Coins, Canadian Maple Leaf Gold Coins, South African Krugerrand Gold Coins, Chinese Panda Gold Coins, Pamp Suisse Gold Bars, Credit Suisse Gold Bars, World Gold Coins, Indian Head Gold Coins, Liberty Head Gold Coins, Saint Gaudens Gold Coins, and Gold Proof Coins.
If you have additional questions, call a PGC account representative at 1-855-655-GOLD or request a Free Investment Kit.
