In this page why you should be investing in silver will be documented. There is a time for certain investment vehicles and a time to move in other directions. Now is the time to be investing in precious metals.
So you know, I had no preconceived notion of whether investing in silver and gold was any better or worse than the stock market. I had a very general knowledge of the history of currency after 1971. But I did know that my IRA was not performing well enough in the stock market. There was a time for that vehicle. But not all the time.
So I sought out information. "Knowledge is the new money." And the information led me to the decision that I needed to be investing in silver!
On this page you'll read the factors describing why the time is right for silver investing. You'll see a historical update on when silver coins actually increased in value and when they decreased. The same timelines will apply to gold investing as well.
I do feel that for most people silver is a better option than gold because the price of silver is less than gold prices. You can begin by buying silver coins, or you can move your retirement accounts into silver. Yes, you can have precious metals in your IRA!
There are actually even less known deposits of silver than gold. And silver does have industrial uses. But most of all, silver coins and gold coins have been held for centuries as the true instruments of real money.
Stick with this page and you'll see why investing in silver will be a vital financial protection tool for your future. It is a better investing idea.
Right off, I'll tell you that there is plenty of Web chatter telling you that investing in stocks is still the best vehicle. They will point to gains made by the stock market in the past months. They will make vague references to stress tests given to the big banks regarding stock market corrections. Odd that they never mention stress testing bond market collapses. Hmmm?
If you remember about a week ago, we used the Latin phrase "cui bono" in a page about deflation vs. inflation. That phrase translates into "As Benefit To Whom?" Try to keep that in mind as you sift through information.
There will be large piles of money made everyday by brokers and big banks if your money continues to flow into the stock market. If the market goes up, that is a plus. But in the end, as long as your 401K, or your pension, or even just your "well diversified" portfolio continues to place your money in their hands, it is to their benefit.
Here is a short time line just to show you how to coordinate investing in silver along with national debt levels.
1.) In 1971 Richard Nixon removed America from the gold standard. Our currency was no longer backed by equal value in physical gold. This caused the fiat currency supply to expand rapidly. (The beginning of the current problem!) Silver and gold prices went up by a factor of 20 in the early decade of the 1980s.
2.)The federal reserve raised interest rates and killed inflation and changed the economic environment. After rates were allowed to lower a bit, there was the beginning of a large rush to stocks. Retirement accounts were pouring dollars in the stock market between 1982 and 2000. Silver and gold prices declined.
3.)The stock market crashed in the early part of 2000. This was the start of an asset drain from those retirement accounts. The attack on 9/11/2001 added to the downturn.
What followed was massive debt, enormous federal spending, a war, (that would be followed by another war), and an increase in the size of government.
Silver and gold did what they always do in times of unsustainable debt and overtime driven printing presses belonging to the American central bank. They began another bull market run that will continue for sometime yet.
Millions of dollars in asset value was lost from stock mutual fund accounts. Broker fees continued however. That is why you'll seldom hear a stock market broker advise against stocks. Even in a losing game they still get paid.
So the math is simple. Higher debt means higher silver prices. Below you'll see a graph to highlight this fact. This graph is a little older. The debt has gotten much higher, so the silver line will also follow much higher.
Governments understand this as well. Interest rates and currency supply are not the only areas they try to control and manipulate. Silver and gold prices are on their list to control as well. If precious metal prices were allowed to grow based on free market principles, there would be a rapid exit from stocks and bonds.
The big banks would not like this, so the US government will try to hold down both gold prices and silver prices. They can for a while, but the combination of too much currency and too much debt, will not allow this manipulation forever.
Here is a short video which further explains this issue. And so you know, this video was made a while back. He references silver and gold prices at that time. Since then both metal prices have gone up, making his case even more powerful!
So there you have it. It is time to invest in something. You aren't even keeping pace with inflation if your money is in a bank.
But first expand your education. I would suggest two books for you to study. Then make an informed decision.
Read "The Aftershock Investor", by Robert Wiedemer first. This will explain what we are most likely in for in the future.
Then read "Guide To Investing In Gold And Silver" by Mike Maloney. This one will explain how to do it. And it will expand on the "Why" regarding investing in silver.
As I've mentioned on another page, you won't hold silver coins just to have them in a box. You won't invest in silver just to accumulate it. You'll invest in silver because that will be the best protection for your retirement. Then when the time comes, you'll use that protected asset account to move into the next correct vehicle.
As I've written before, when it comes to any federal government, watch what they do. What they say is quite often just a distraction. China and India are buying up gold at a record rate. Other countries as well. The greatest transfer of wealth will be upon us. It can either move toward you or away from you.
I'd like to see it move toward you!