Is Now the Time to Buy Silver?

by Lear Capital EditorialApril 22, 2016
Is Now The Time to Buy Silver?

Silver has had a rough ride in the past year or so. Deeply undervalued, silver was trading at below the all-in mining cost. We thought at those silver prices, considering its value as a “double play” metal, with both industrial uses and inflation hedge appeal, it was time to buy silver in bulk, if you could! Sure enough, our silver sales were through the roof at that time, indicating that the low silver price was not a problem of low demand of silver. Seasoned investors and new silver investors alike were interested in purchasing silver coins.

In fact, the US Mint and mints all over the world were experiencing silver shortages and running out of silver coins regularly. There were periods where it was difficult to buy Silver Eagles online, and still the price stubbornly didn’t budge! Popular silver coins like Morgan Silver Dollar, Silver Peace Dollar and Silver Polar Bear were harder to find and purchase. Where do you find silver when everyone is out of it?

Recently there were some earth-shattering admissions from Deutsche Bank about fixing the precious metals markets, including silver, and the industry’s theories were confirmed. Someone has been messing with the price of gold and silver all this time. Will it stop now?

The silver shortages are easing, even though silver is still trading at about all-in production costs. It is still a great buy, and silver is indicated to go much higher until market equilibrium is really reached.

Unlike traditional investments, the price of silver moves throughout the day according to supply and demand. There are several variables that affect the worth of silver:

  • When traditional investments are performing inadequately, silver tends to offer a better investment.
  • Gold is noted as a main force behind silver prices. When the market is strong, investors are generally interested in silver and all major precious metals, which lead to an increased demand for silver.
  • Any news that negatively affects the global monetary system positively impacts silver prices.
  • Silver, being an industrial demand, always faces industrial shortage. When there is a shortage of silver, industrial users will rush to maximize their inventory, which increases silver prices.

Precious metals, including gold and silver, have outperformed the Dow by over 300% over the past decade which begs the question ... why wouldn't you secure your accumulated savings by adding silver to your portfolio?

For centuries, investors and collectors have owned silver for a variety of reasons:

  • Silver is considered a potential hedge against inflation and an eroding dollar.
  • Silver is internationally recognized as a monetary and financial asset.
  • Silver is able to be passed on to future generations of children and grandchildren.

If you are looking to invest in the precious metals market, including silver, we pride ourselves on being the internet's best silver provider for investors of all kinds. We would welcome your business and look forward to answering any questions you may have on silver and other precious metals. For silver investors interested in selling, we also buy silver coins. We make the process of buying silver and gold easy, and take the time to educate our clients. Call us today to get started.

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