Why Silver

Junk Silver

There are many good reasons to buy silver.

Perhaps first and foremost is because the Federal Reserve is destroying the purchasing power and value of the dollar.

  • printing moneyCurrently, the US is printing more and more currency out of thin air in order to pay its current debts.
  • The US debt level is mathematically impossible to pay off.
  • The US can either default and declare bankruptcy, or they can print their way out of debt, which will lead to hyperinflation.
  • Concerns about the outlook for the global economy, worries about U.S. inflation because of two quantitative easing programs by the Federal Reserve, and uneasiness with the size of the debt in Western nations has caused many people to seek comfort in silver and gold.
  • With Global economies on the brink, the world is “Beginning” to wake up to the importance of owning silver and gold coins as a preservation of wealth. Silver and Gold coins are not only a preservation of wealth but have the unique potential to dramatically increase in value during volatile economic times.
  • Nations like China and Russia have started moving away from the Dollar in trade, which signals the end of its role as the global reserve currency.

Silver is seen by many to be the most undervalued metal in history with supply at an all-time low and demand at an all-time high.

  • There seems to be new uses for silver invented every year. Besides a store of value, silver has a second role as an industrial metal, so manufacturing activity can influence its price. When manufacturing starts to increase, silver can see price support from increased usage.
  • Silver’s use in the medical field has been growing as it is used to purify water and has anti-bacterial qualities. It’s also a good conductor of electricity. While there is industrial demand for silver, the investment demand has been driving prices higher and will likely continue to do so, said David Morgan, independent precious-metals analyst with Silver-Investor.com.
  • Much of the industrial silver is used up and not recovered.
  • Ted Butler asks, “If you knew something that only “one-tenth of one percent of the world’s citizens are aware of – the fact that silver is rarer than gold” wouldn’t it be a good idea to be in a business that should benefit as more people learn about silver?”
  • Silver is becoming more scare and the premiums we pay for it reflect that fact.  Several times in recent years the U.S. Mint has suspended it’s production of Silver American Eagle coins because of the shortage of bullion.

Silver is real money… a real store of wealth, unlike fiat paper currency.

  • Throughout the ages, silver and gold have stood the test of time being used as money. The forefathers of America knew this and adopted it into America’s Constitution known as the “Gold Standard”.  The U.S. Constitution Article I, Section 10, Clause 1 says, “No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
  • Silver can be bought in both bullion and numismatic physical versions. Like gold, it can be a store of value and a hedge against inflation.
  • Silver is much cheaper to purchase, giving it the moniker of the “poor man’s gold.”
  • Because of the familiarity of the American Eagle coin, they are easy to resell.