Posted By Isaac Nuriani
Silver prices today and in the past - a short guide. I believe silver is probably one of the best investments currently going.
Silver is a good option as, in my opinion, it is currently widely undervalued and often ignored: which therefore means that it has the potency of being ready to explode in value. This means that silver is one of the best precious metals to invest in right now.
However, what precious metals are available to invest in right now?
With high inflation and the industry being largely ignored by the mainstream one could say that investing in all of them is a good idea.
However, there is one precious metal that we believe is really going to kick into gear.
In 2011 Silver was at a high, but is now selling for less than half that amount. It is for this reason that it is being ignored and everyone is paying attention to other metals such as gold. It is for this reason why one should begin to think about the potential of silver.
It could be a good idea to ignore the headlines that often appear in the mainstream media such as the fluctuations in the holdings on ETF, and the latest stance on open interest. This sort of information easily fluctuates on a regular basis and has no real long-term bearing on things such as price.
Let's consider why silver could simply be a massive pile of money waiting in the corner...
1. Silver is a currency that avoids the risks that printed money faces, including government enforced problems and other issues such as counterfeit money.
Government is steadily printing money: “quantative easing” is at an all-time high and will eventually make the dollar volatile. I believe silver will avoid this massive storm and stay true to itself, as a better form of currency, which may then rise in a similar way that gold has.
2. Silver is also a popular investment because of its potential in inflation adjusted prices. John Williams is famous for working at ShadowStats and has been calculating the price of silver throughout the month of May 2014.
We can see the adjustment for the silver prices, according to recent studies, which has been calculated by the bureau of labor statistics. These prices have been calculated according to a formula which was originally designed in 1980.
When silver hit its famous peak of $40 in the month of April 2011, it was at that point less than half the adjusted price of inflation from January 1980.
If silver does manage to hit a peak again, then people are likely to go crazy over it as a form of investment.
3. Now the margins have changed considerably as producers have had to reduce costs after the crash of silver last year.
Silver is now at its lowest point since the year 2005. However, the price of silver has traded well in history and often above the figure that it currently stands at.
4. All of the coins in the US that have been used for circulation have been effectively minted for decades from base materials.
The inventories that are currently available are extremely low. Therefore, if demand surged in a similar way as it did between 2005 and 2009, there would be little room for errors on the supply side.
5. So what conclusion are we to make of the bear market? A look at the six decades that have taken place throughout the bear market shows us that we are now near exhaustion.
We can now see from historical records that investing in silver would lead to, what is in my opinion, a low risk investment.
6. It is actually cheaper when one compares it to different commodities. Let's have a look at how the cost of silver compares when we look at other common precious metals.
Only the metal, nickel, is a step away from silver in terms of an all-time high.
7. China has also noticed the potential of silver and now it is not just gold that is moving from the West to the East.
Markets that were trading silver began to rise quickly in the last several months, which can be traced back to Shanghai futures exchange which led some overnight trading.
China is expected to rise with its silver trading and estimated to exceed ounces of up to 250,000,000 this year. This is an incredible rise since the year 2000, in which it traded 70,000,000 ounces.
China is the location that has the highest percentage of growth in applications that have been made from silver. This includes jewelry, electronics and silverware to name a few, as well as many other products.
After analyzing this data you may be wondering where to get silver from. Buying silver online is easy to do and has been a popular way of accessing silver to trade. One can also shop at the Augusta Precious Metals website as a good location to invest in silver.
So why not look at silver as something to invest in and add to your portfolio? It is now easier than ever to buy and sell metal in a network that offers competitive prices. Take a look on the web for trading options and buy silver online at Augusta Precious Metals before the boom take hold.
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