With huge deficits in the U.S., Europe and Japan. All major currencies are printing money like crazy. Most of you probably know that with 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.
Silver has more than doubled its price in the past two years, but I believe the real major silver rally has not even begun. Take a look at the U.S. Government Spending web site: http://www.usgovernmentdebt.us/debt_deficit_brief.php Look at how the U.S. government debt has gone totally out of control in the past few decades. And it is still getting worse. The government is still piling on more than a trillion dollars of deficit every year. Believe it or not, the dollar will eventually become totally worthless. 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 22. Very profitable growth company and extremely undervalued stock.