The logic for investing in silver is very similar to the logic for investing in gold — as a hedge against inflation. It is a real asset--something you can hold and keep, not just paper currency with arbitrary value.
However, silver now has two advantages as an investment compared to gold. First, silver has many more industrial uses than gold. It is used in cars, cellphones, computers, solar panels, water purification systems, mirrors and much more. Silver is even being incorporated into medical papers used by medical professionals, because of its antibiotic characteristics.
Of all the metals, silver is argued to be the best conductor of electricity, so it has many uses in electronics. And, of course, it is used in jewelry. Because more silver is consumed by industry than produced by mining and recycling combined, the price of silver is likely to continue increasing.
Silver has historically traded at a low price relative to gold, which means it offers more potential for some investors. In addition, because the media has covered gold extensively in the last few years, investors have focused more on buying gold, making it relatively more expensive than silver.
At one time in history, the price ratio between gold and silver was 16:1 and it rose as high as 81:1. It is constantly changing. Investors are realizing this potential. We believe the price of silver will soon begin to rise again. This could be the time to buy silver at a low price in order to sell high later.
Some analysts report that the U.S monetary base has more than doubled from 2008 to 2010, and U.S banks have increased their reserves by more than $1 trillion. Inflation could hasten once banks start lending out all of their reserves. If this happens, the world could be drowned in new money and prices will rise. We believe the best hedge against losing the hard-earned value of your money is investing in precious metals, such as silver. Silver protects wealth and, over the long term, it consistently increases in value.
Increases in the monetary base tend to increase silver bullion prices. As you can see in the chart, the price of silver shot up around 2008 when the Federal Reserve dumped trillions of dollars into the money supply.
As banks release more and more money into the monetary system, the price of silver may greatly increase. We believe gold and silver will remain an important part of every American’s portfolio, including for some investors the rolling over of an existing IRA, 401(k) or other retirement plan into a gold or silver IRA. Use the Augusta™ Gold or Silver IRA to defer income taxes AND get all of its unique advantages.
Rest assured, Augusta will only use your email to send you our SEE, TOUCH & HOLD brochure or for the purpose of communicating with you in connection with our services.