Buying Silver is a Safe, But Volatile Investment

As an individual or investor, you are taking a wise decision when buying silver. We are in a severe financial crisis: governments are not able to pay back their debt, there are massive bank runs around the world, and there is social unrest in many Western countries. In short, the banking system and governments are running a systemic risk. This is a historic moment, as the fundamentals to buy silver and gold have never been better than now.

Making a silver investment

While both gold and silver can preserve your wealth, buying silver in particular can increase your wealth. That’s because silver is much more volatile than gold. The silver price can move up aggressively. The flip side however is that the silver price can move down quickly as well. So investing in silver is not for the faint-hearted.

Why is this an exceptional time to buy silver? 

Every investor should keep a close eye on a couple of important parameters. First, people are investing currently the same amount in silver as in gold (expressed in a currency), while the silver price is currently 50 times cheaper than the gold price. While there is 6 times more silver available for investment than gold, people are buying silver at a 50-to-1 ratio. Yes indeed, we are moving to a point where there will be a physical shortage of silver. When applying the natural law of supply and demand, you can imagine what will happen with the silver price and your silver investment at such a point.

Next: the gold/silver ratio (simply the gold price divided by the silver price) is, at the time of writing (May 2012), 52 to 1. That’s a very high ratio historically. The ratio has a natural tendency to move towards 30:1 or even 20:1. From that point of view, making a silver investment now could make for a good investment when this ratio adjusts over time. We are not saying that the ratio will for sure reach 20 to 1 in the short run, but based on a reliable historic average, we can expect with a high probability that the silver price has much room to move upwards in the years ahead.

Check these recommended companies when making your silver investment

For individuals or professional investors seeking to make a silver investment, we’ve created a listing that contains only trusted companies : buying physical silver (bullion), buy silver coins or get involved in a silver investment fund.

 


 

Beginners’ Guide – All Articles

 

INTRODUCTION TO THE WORLDS OF GOLD & SILVER

What’s This Financial Crisis About and What’s The Link With Gold & Silver?

Physical Gold: antidote against the ongoing global debt crisis

7 key benefits of owning gold and silver

7 Ways to Invest in Gold  and  7 Ways to Become a Silver Investor

Is Silver a Safe Investment  and  Are Silver Coins a Good Investment

Buying Silver is a Volatile Investment  and  The Value of Silver

Why To Buy Gold Bars as a Gold Investment

Understanding Gold Coin Prices

Understanding Gold Price Per Ounce

 

7 TIPS TO INCREASE YOUR WEALTH WITH GOLD & SILVER

Introduction: Now is the time to invest in gold and silver – 7 tips to increase your wealth

Tip 1: Gold and silver is for everyone – You too should own it

Tip 2: Be sure to have physical gold & silver

Tip 3: We are in stage 2 in the long term gold & silver bull market

Tip 4: Be prepared to see sudden price drops

Tip 5: Timing when buying is crucial

Tip 6: This is the century of silver

Tip 7: Gold & Silver stocks can have high yields

 

IS NOW THE TIME TO BE BUYING GOLD & SILVER?

7 facts proving we are in a long term powerful uptrend in Gold and Silver

Is This the Best Time to Be Buying Gold and Silver?

Gold Investments in 2012

 

THE BEST GOLD & SILVER INFOGRAPHICS

Is gold a bubble? Look at this Infographic for the answer.

Own physical Gold? This infographic explores Vaulted Gold as one of your options.

Infographic: all you need to know about Gold in the world