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Silver Shortage

Updated on May 1, 2011


Through a difficult life experience I have learned that silver is a fantastic investment.

There is a coming silver shortage for many reasons. Common knowledge is that when experiencing economic hyperinflation, such as today, the value of the US dollar will continuously dwindle (along with the rest of the world’s currencies as they attempt to adjust away from the US dollar), and that the values of commodities will rise. Commodities include precious metals, such as gold and silver. It is of my opinions that in the end, silver will be victorious over gold, and return the greatest investment to you. Although I recommend you purchase both gold and silver if your budget permits, as both will be good investments.

Silver will triumph because unlike gold, silver will have a physical shortage. Here are the following factors that will help drive up the price of silver:

  1. The collapsing US dollar
  2. Hyperinflation from the Federal Reserve printing money
  3. Investment fever into all precious metals
  4. Currently an affordable price tag, opening up silver investing to all economic brackets, including populations of the developing world in some cases.
  5. The Chinese are currently stockpiling in silver.
  6. The most important reason of all, silver is required for several industrial and commercial applications.

The majority of silver stock is still used for industrial purposes.
The majority of silver stock is still used for industrial purposes.

While 1, 2, 3 apply to both silver and gold, it is in points 4, 5, 6 where silver pulls ahead. While gold too is used for industrial purposes, it is next to nothing compared to silver.

The chart illustrates well that currently only a tiny fraction of silver is being used for investment. As the demand for investment increases, silver will be squeezed on all counts, the price will skyrocket.

-Donovan D. Westhaver


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    • amillar profile image

      amillar 5 years ago from Scotland, UK

      Hi DonDWest,

      The thing about silver - here in the UK - is that it has 20% vat on it. Gold is vat free.

      BTW, is it still looking like a good investment? I see this hub was published in 2010.