Silver is Real Money Like Gold
Silver is real money. Plenty of people don’t think of it as that but it truly is. What most people consider real money has no intrinsic value. You can’t even use it as toilet paper. It only has value because our government says it does and requires us to use it via legal tender laws.
Silver is Unprintable By The Federal Reserve
While it’s true the US Treasury does mint silver coins they can’t do it anywhere near the rate that they can create new dollars. Now that we live in a computerized age the monetary supply can be expanded with a computer entry instead of having to start up the printing press which allows the monetary supply to increase just that much quicker.
When the Federal Reserve creates more money the money you have in your savings bank looses value. This happens because when the monetary supply increases the amount of goods and services don’t increase. The price of those goods and services has to go up when more dollars are chasing the same amount of goods and services. This is why it is a good idea to purchase silver because the Federal Reserve can’t create silver like it does paper money and so they can’t decrease the value of silver like they do the US Dollar.
Gold is More Costly Than Silver
I have read that silver is more hard to find then gold and contrary to that I have read that gold is eight times more rare than silver. At the moment, between silver and gold, the price ratio is about 60 to 1. That means one ounce of gold costs is equal to 60 ounces of silver. This is the reason why some people assume that silver is undervalued. Trading is more easier for the typical Joe because of the lower nominal price.
You Have Something of Real Value Just in Case
This means that hyperinflation can never be an issue because if that takes place, you will have a real store of value. This is not to frighten you so you will not buy silver. However, that can happen any moment. The internationally renowned investor Marc Faber believes it is a 100% certainty that the US will encounter hyperinflation though I don’t personally concur with this assessment.
As a smart addition to your portfolio, consider purchasing silver bullion even if you don’t believe hyperinflation will ever take place. Undoubtedly, the best price online is American Precious Metals Exchange.
Please note: I am not a financial advisor. Cautiously consider your options before investing.
Read more about why you should buy American Silver Eagle Coins.
