Lloyds Asset Management touts benefits of silver investing

March 2, 2011 - PRLog -- WEST PALM BEACH, Fla. – U.S. Mint silver sales surged to 6.4 million ounces in January – a 50 percent increase from the previous record.

Silver’s recent gains can be attributed to inflation and global economic instability. Since 2000, the U.S. dollar has lost 20 percent of its purchasing power. Since the Federal Reserve was created in 1913, the dollar has lost 95 percent of its purchasing power. Additionally, the Federal Reserve has approved another $600 billion stimulus that will be pumped into the market in 2001, causing further inflation on the dollar.

While the value of the dollar diminishes, China is increasing its silver and gold reserves in a push to make the yuan the new world reserve currency. For the first time ever, the Chinese government has given $1.6 billion Chinese citizens permission to purchase precious metals, causing a significant increase in investment demand.

“In times of economic instability, investors seek safe haven assets such as silver and gold,” said Max Rodriguez, senior metals analyst at Lloyds Asset Management. “With high unemployment, a continued housing crisis, low consumer confidence, and an overall global recession, investors worldwide will continue to seek precious metals for wealth preservation.”

Traditionally, gold has been a popular investment -- but since October 2001, silver has outperformed gold by over 235 percent. In that time frame, gold prices increased 540 percent while silver prices increased 775 percent.

Since 1980, above-ground supplies of silver have been reduced by 90 percent, while industrial and investment demand have continued to increase. Due to the introduction of silver-backed funds, investment demand for these funds has taken 25 percent of the annual silver mined off the market.

“As long as this recession remains in place, the overall upward momentum for all precious metals will continue well into 2011,” Rodriguez said. “We’ll see $40 per ounce for silver as a realistic price target by the end of 2011 as investment and industrial demand continue to support this market.”

For more information about how to invest in silver and other precious metals, visit Lloyds Asset Management’s website at http://www.lloydsmetals.com/.

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About Lloyds Asset Management

Lloyds Asset Management physical commodity investment firm was designed for individuals looking for the combined strength of high investment leverage and the security of storage at an independent depository. Lloyds specializes in helping investors diversify a portion of their portfolio into hard assets like gold, silver, platinum, and palladium, with advanced investment strategies designed to maximize returns through the purchase of leveraged physical precious metals. Lloyds has locations in West Palm Beach, Fla., and Los Angeles and can be found online at http://www.lloydsmetals.com/.