US debts are hitting ceiling again. Most of you probably know that with the excessive money printing, it is better to invest in gold to preserve wealth, but do you know silver is actually even better than gold? Do you know there is less above ground silver inventory than gold? Silver is rarer than gold from the inventory perspective. And silver is extremely undervalued comparing to gold. The mining ratio of gold/silver is 1/10, but the gold/silver price ratio is 55/1. If you value silver by mining ratio, silver still has room to go up five folds for its price to catch up with the gold price. However, if you value silver by the inventory availability, silver can go up 55 folds in price to catch up with gold. More information about the severe silver shortage here: http://www.youtube.com/watch?v=-IiarVvZguY
You should have a long-term view and be prepared to ride out the ups and downs when investing in silver because silver prices like other commodities are volatile. If you can hold on to silver, it can bring you huge profits in the coming decades.
Take a look at the Congressional Budget Office web site: http://www.cbo.gov/ftpdocs/122xx/doc12212/06-21-Long-Term_Budget_Outlook.pdf Look at how the long-term Federal Debt (first page) will go totally out of control in the next few decades. That is when the real parabolic silver rally will begin. Believe it or not, the dollar will become worthless with the U.S. deficits totally out of control. Silver will be your best guard against the devaluation of the U.S. dollar in the next few decades (not just years).
There are a few ways to invest in silver:
1. Buy silver future contracts: If you can trade futures, you can buy silver futures. This is the most risky way to play silver due to leverage. You can win or lose big in short period of time.
2. Buy silver funds: SIVR, PSLV and SLV are all silver funds. They hold actual silver in vaults. So it is a simply way to own silver indirectly.
3. Buy Ultra Silver fund (Symbol: AGQ): AGQ is also an aggressive way to invest in silver. AGQ is designed to move at twice the rates of the silver prices. If silver is up 1% in price, AGQ is designed to go up 2%, vice versus.
4. Buy silver miner stock (Symbol: SLW): SLW is the largest silver streaming company in the world. When silver price goes up, SLW profits go up too. It reported 470% increase in earnings in the last quarter of 2011. Despite the huge growth, its PE is only 18. Very profitable company and extremely undervalued stock.
5. Buy silver coins from the US Mint: I recommend to invest in high concentration silver coins like American Eagles Silver coins: http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?langId=-1&storeId=10001&catalogId=10001&identifier=1000 However, due to the severe silver shortage, even the US Mint is experiencing difficulties in obtaining silver to make coins sometimes and does not have them available at all times anymore. You need to buy them when they are available. The alternative is to buy lower concentration silver coins: http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?langId=-1&storeId=10001&catalogId=10001&identifier=2000 Lower concentration silver coins have better availabilities, but they can be sold out from time to time too. Be careful, not all coins are silver coins. You want to buy silver coins, not regular coins. And if you are new to coins, only buy from the US Mint, not internet sellers. There are many fake silver coins on the net.
Good luck to all!
LOL. That is right. Silver doubled in price in the past two years, and it is going very strong again this year. With the U.S., Europe, Japan, China all printing money like no tomorrow, silver is sure to go up.
Who loves silver?
Silver has been one of the best performing asset class this year. It is up more than 20% in January. Looks like silver is going for double or triple price this year just like 2009 and 2010.
I love silver.