What Are Some Good Reasons To Invest In Silver?

1. 67

   PhoenixVposted 12 years ago

   What Are Some Good Reasons To Invest In Silver?
   
   What Are Some Good Reasons To Invest In Silver?

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2. 71

   Theeyeballkidposted 12 years ago

   Generally the reasons are pretty similar to gold
   - It has intrinsic value, it cant be printed or manipulated by central bankers, politicians and governments.
   - Silver like Gold it has been a stable form of currency and store of value for thousands of years, it is a hedge against inflation and money printing.
   - The cash cost to mine silver varies but averages around $18-20, in theory that should put a floor under the price, if the price goes under this level it becomes uneconomic to mine it.
   - Unlike Gold, silver is primarily an industrial metal and most of it is consumed in industrial applications, therefore reducing the amount of silver supply in circularion and increasing the price.
   - The gold/silver ratio favors silver at the moment this means that in relation to gold silver is undervalued (on a historic basis)
   
   These are just a few reasons there are others but also bear in mind that silver has had an impressive run over the past decade so could be due a correction. Long term however I think the fundamentals of silver are incredible and if you are buying to hold it long term the current fall in price presents a pretty good opportunity (Just my opinion, there is always risk the price could fall further)

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3. 60

   duffsmomposted 12 years ago

   Silver is fairly steady and will likely remain so.  I wouldn't say it is a huge money maker given the fees one has to pay when purchasing...but it does remain fairly steady hovering around $28-$30.

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