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

Did you ever ask yourself, as an individual or investor, why you should be buying gold or investing in silver (not jewelry, but precious metals as an investment or wealth preservation)? The answer to that question is simple: you just need look around you in today’s world, e.g. by opening a newspaper or listening to the news on the radio.

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.

How can you as an individual or investor protect yourself against this financial crisis (debt crisis)?  There is one safe way out of this mess: buy gold and silver. Yes indeed, this is a historic moment, never before have the fundamentals been so strong to buy gold and silver.

7 reasons why you should be buying gold and silver

  1. Protect your savings against currency devaluations
  2. Protect your purchasing power as inflation is steadily rising
  3. Protect yourself in case a collapse in the banking system occurs
  4. Protect your portfolio and wealth if an economic collapse occurs
  5. Protect yourself against the massive money printing by governments
  6. Make use of the benefit of having no counterparty risk
  7. Buy gold and silver because “the trend is your friend”, just look at the prices of both metals since 2002.

Investing in silver

While both gold and silver can preserve your wealth, investing in 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 quickly move down as well. So investing in silver is not for the faint-hearted.

Why is this an exceptional time to invest in silver? 

Every investor should keep a close eye on an important parameter : the gold/silver ratio. That’s simply the gold price divided by the silver price. At the time of writing (May 2012) this ratio is 55 to 1, which is very high from an historical perspective. The ratio has a natural tendency to move towards 30:1 or even 20:1. From that point of view, investing in silver now could make for a good investment when this ratio adjusts over time. We are not saying that the ratio will for sure reach 20:1, but that’s a reliable historic average measured over a very long period of time.

 


 

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