Silver is in many ways more practical than gold. Silver is much more affordable for the average person. As of this writing, you can buy silver for less than $20 an ounce.
Just like with gold, silver is a great hedge against inflation and a hedge against chaos. Like gold silver is also a great store of value. Unlike gold, silver may even be a good investment. While gold prices may rise dramatically in terms of their value in fiat money, the actual purchasing price of an ounce of gold changes little in the long term. Silver is a bit different.
Silver Can Be a Great Investment
Silver is used massively by industry for various purposes. Gold is used by industry certainly, but not nearly to the extent that silver is. It has been discovered that silver is a powerful anti-bacterial substance. The use of silver in medical applications is increasing annually. I told you that to tell you this, most of the gold ever mined is still in existence due to recycling. In contrast, silver is getting used up at a rapid rate.
Historically gold and silver have traded at approximately a 15 to one ratio. It took 15 ounces of silver to buy one ounce of gold. As of this writing the ratio is about 78. So today it takes 78 ounces of silver to buy one ounce of gold. With the fact that historically silver was worth much more compared to gold than it is right now, and silver is being used up quickly by industry, the potential upside in silver prices is very good.
Silver Is a Great Place to Start
Silver is also a great place to start with precious metals investing. It’s more affordable and easy to go to your local coin shop and buy a silver coin for a mere $20. Just like gold, you should buy bullion coins or rounds. Stay away from bars or collectible coins. With bars you will have to pay fees to have it assayed when you want to sell. With collectible coins, you really have to be an expert to truly know where the value is. Plus I’m more into precious metals for the value of having something tangible in your possession in the event of a major catastrophe that makes more mainstream financial instruments unusable.
Just like gold there are silver Exchange Traded Funds (ETFs) and IRA options that will allow you to put some or all of your IRA in silver. There are also vault services that will store silver for you around the world. Michael Maloney’s book on gold and silver is a great place to get more detailed information.
Investing is silver is a good idea. If you have a lot of money, you can buy enough gold to make a difference in your life. But if you’re like me and you don’t have much for net worth, buying any amount of gold is difficult. Buying silver is the way to go.
I want to live in a world where individuals control their own wealth and resources without depending on the vagaries of a central bank that will steal from them on behalf of their “leaders” in government. Silver can be a great way to get other people interested in real money and off the fiat bandwagon. I like to use silver coins as tips in restaurants and for services such as haircuts. An ounce of silver is a pretty generous tip for most services, but if it gets one more person interested in alternatives to fiat money, I’m willing to do it.