Is Silver Now A Better Investment than Gold? Precious Metals Update

Oct. 17, 2011 - PRLog -- Is Silver a Better Investment Than Gold

There are many different approaches in which people go about investing their hard earned money. Some prefer to go for equity investment, others try out real estate and many opt for shares in publicly traded corporations, but one thing that is common for most serious investors is that they invest at least 20% of their portfolio in precious metals.

Silver is consumed and gold is hoarded - Robert Kiyosaki

The reason for this is simply that investing in precious metals is the best way to stabilize one's finances and counter the twin threats of market volatility and economical instability. Notably, as precious metals means gold and silver, most people get confused as to which one they should go for and end up trying out a random mix of both.

The answer is the latter because of the following reasons.

1.  The demand for silver is high and constantly rising:  

The demand for silver is extremely high because it has multiple uses in the world. This is especially true when silver is compared to gold because silver has uses in both commercial processes as well as scientific processes.

2.  The stock pile, ground reserves and production of silver are all dropping:  

Owing to the number of uses that silver has in various types of processes, the total amount of silver in the world is constantly dropping, whether you focus on over-ground silver or underground silver. The problem is so serious that there are now large scaled operations underway for recovering or reclaiming used silver through silver scraps and chemical compounds.

3.  Appreciation in the value of silver is high:  

Finally, because of the above mentioned reasons, the appreciation in the value of silver is much faster than that of other precious metals like gold. In simpler words, the percentage increase of silver prices would be significantly higher than that of gold if you compare the two over the last few decades.

Terry Sacka, Accredited Asset Management Specialist at Cornerstone Asset Metals, states "Back in the 1950's you could take a paper dollar and redeem it at the bank for just short of an ounce of silver. In those times that same paper dollar would purchase 5 gallons of gas."  He goes on to say "Today silver is no longer redeemable at all by paper dollars, however you can get approximately $35.00 for an ounce of silver. That same $35.00 redeemed from an ounce of silver will now buy you about 8-9 gallons of gas, but today's paper dollar bill will not even buy you one gallon of gas."

Clearly this example demonstrates the value of silver as an investment .

This does not mean that gold is not still a sound investment however when weighing your options in the precious metals, one must objectively evaluate a) the current market conditions and b) how precious metals investments fit into their current investment objectives. For more information see the resources below.

Resources:
http://ezinearticles.com/6549722 - "Is Silver a Better Investment Than Gold?", Terry Sacka AAMS
http://answers.yahoo.com/question/index?qid=2011072521412...