Silver investment Investing in Silver
Gold and Silver Investment - Silver investment
Silver is known as a precious metal but not many people pay attention to it as a form of investment. Many take it In fact, how many people do you know, who owns silver. How about yourself - Do you own any silver? Look back at history. For thousands of years, silver, not gold, was the coin of the civilized world. One of the most complete histories on silver can be found in the book “The Silver Bonanza” by Franklin Sanders and James Blanchard. The book begins with the following quote from Milton Friedman: “The major monetary metal in history is silver, not gold.” There are evidence of silver being used as money way back to 4,500 years ago. From the book “The Silver Bonanza”, silver was already mentioned in the Bible. During the reign of King Charlemagne, silver was the only legal tender metal. The early colonial America preferred silver over gold and rigged the gold-silver ratio to encourage the flow of silver into the US. Back then, it ratio was about 15 to 16 ounces of silver to exchange for one ounce of gold in the rest of the world. Silver which is used widely for commercial purposes known as "industrial metal". And because it is so common, not many people are aware that it can be used as an investment and as a safe hedge. Silver functions often as a better inflation hedge fiat money but few investors believe it. For over four thousand years, silver has been used as a form of money and store of value. Dating to to the Roman empire, coins were made of silver and gold. It was in the late 2007 that Silver started to pick up momentum and in the financial crisis of 2008 that Silver was in such demand that many coins stores and silver supplier ran out of silver. This is a fact. Since then, the interest for silver has generated much attention and the price of physical silver has a high premium about spot price. It used to be on par of even below. Even today, while Silver is still below $20, it is still a good investment because it is under-valued. It is relatively cheap compared to gold which has risen to more than a $1000 per ounce 
for granted that it is common. "Money is still king" as the saying goes.
Take a look at the chart of Silver for the last 10 years. In year 2000, if you had invested in 1000 ounces of Silver near $4, it would have cost you $4000 plus, perhaps a month's salary for some. In early 2008, when silver was at $20, your silver investment would have reaped a $16,000 profit. Even when Silver was at a low of $10 in 2009, you would still have made $6,000 profit. And there are many factors that are driving up Silver, Gold and other precious metals.
24 hour $US Dollar price per ounce.
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
These are some reasons why it is worth considering investing in silver.
1. The Declining Dollar
The purchasing power of the U.S. dollar has steadily declined over the years and US is in debt to the tune of "Trillions". 1 trillion is 1000000,000000. That is one million, million - 12 zeros.
Ponder over this - when the government needs more money, they can make it out of thin air. Just run the printing machine and your get millions and millions or paper money
This was a speech by Ben Bernanke -
What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm
2. Supply and Demand
Silver is widely used in the industrial sectores than other precious metals. It is used from car industry, electronics, jewelry, superconductivity, water purification, airline .. and the demand is increasing where as the silver production from mines are not producing enought for supply. Gold has already gone above $1000. Silver will be the next precious metal to follow.
