Should You Be Buying Silver?
In today’s current economic environment, many individuals are asking themselves a simple question – “should I buy silver now?”
Traditionally, silver has always traded at a lower price compared to gold, and while that remains true today, many people have been giving silver a second look as an affordable alternative to an investment in gold.
After all, silver is a precious metal just like gold. It has a proven track record of being a store of value since the dawn of human civilization. It is a hard asset that can be used to protect and preserve wealth in uncertain economic times. Silver is not beholden to the whims of Central Bankers, whose main inclination is to crank up the printing press at the drop of a hat. The supply of silver is determined solely by mother nature.
The global economy currently finds itself in the midst of a vicious debt cycle that can only be solved in one of two ways – either endure the pain and austerity measures that must be incurred to reduce debt, or issue new debt to to keep the old debt afloat, all the while hoping to avert a complete collapse of the financial system.
Policy makers around the globe have clearly decided to opt for more debt creation as the solution. How has the global economy reacted to these measures? Despite two “Quantitative Easing” programs instituted by the Federal Reserve, as well as ongoing measures by the European Central Bank to address the sovereign debt crisis in the Euro Zone, the global economy remains in a precarious position.
With all of the world’s major fiat currencies losing their purchasing power at the same time, how are individuals supposed to protect themselves should the unthinkable happen? The answer is to hold real, tangible assets, and buying silver is one of the easiest ways that individuals can insulate themselves from a total collapse of the monetary system.
The American Silver Eagle Coin Is An Easy Way To Start Buying Silver
In the event of a monetary collapse, it would be reasonable to believe that we would all revert to a system of commerce that existed long before the advent of the paper fiat currency that we find so commonplace today. Goods and services would be exchanged for other goods and services of similar value. In the absence of such goods, gold and silver would be used to facilitate trade since their intrinsic value is deeply rooted in our collective psyches.
Since the price of gold has climbed to all time record highs, many individuals have been priced out of the market. In contrast silver is relatively affordable to a majority of people. Even though the price of silver has increased to highs not seen in 30 years, it still remains an reasonably priced hard asset.
Historically, the silver/gold ratio has been approximately 16 to 1, meaning that the value of 16 ounces of silver was equal to 1 ounce of gold. Today’s ratio’s are higher to be sure, but once the ratio returns to its historical equilibrium, we will see an increase in the value of silver will will make today’s silver prices seem like an incredible bargain.
Should you be buying silver now? In light of everything going on in the world, how could you afford not to?