Why buy silver bullion?
The comments regarding economic uncertainty apply equally to a Silver Bullion investment. Many analysts are even more bullish about Silver than Gold.
So, why buy Silver?
1. Silver is also reverting to a currency again. Like Gold, Silver has also historically been a currency. It is expected that due to the uncertain financial times, Silver will once again revert to a currency as it has been for thousands of years.
2. The collapse of the US Dollar. The US dollar is the world’s reserve currency and thereby anchors the world’s monetary system. It would appear that the chances of the US emerging from its bad financial position is remote meaning continued debasement of the US Dollar.
3. All major currencies, the US Dollar, the Euro, Yen, Australian Dollar, Canadian Dollar and the Chinese Yuan have all depreciated against Gold over the last 20 years. So, the bottom line is that there is no safe haven in any fiat currency today. In order to preserve one’s wealth, it is important to move out of any currency and into physical bullion.
4. The chances of hyperinflation is becoming a reality is getting stronger. As a result of the Global Financial Crisis between 2007 and 2009, the world’s Governments were forced to step in and bail out the financial sector, while propping up the private sector to prevent a total collapse. Widespread Quantitative Easing was undertaken by all Governments around the world. This policy will continue and the fiscal deficits in many countries are now reaching percentages of GDP that will eventually result in currency collapse and hyperinflation.
5. Silver has through the ages traded at 1/15 the price of Gold. Many analysts are of the view that the price of silver will adjust to this ratio. Should the Gold price rise, the increase in the Silver price will be even more pronounced.
If you are not convinced yet, here are some quick facts for potential silver bullion investors:
- Silver, just like Gold is highly liquid. It can be converted to cash quickly.
- The price of Silver is readily ascertainable and the value of one’s investment is visible at any time.
- No GST is payable in Australia.There are more than 10000 (yes ten thousand) Industrial uses for Silver. In fact, Silver is the most common element found in all new patents registered in the USA today. Most of all annual production of Silver is consumed, leaving very little Silver available to investors.
- Silver, as in the case of Gold, has been one of the best performing asset classes over the last 11 years.