Why Invest In Silver?

hargaoffer

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Silver to become a rare earth metal , it is Extremely undervalued. Silver to become extinct by year 2020 according to geologists only 300 millions ounces left! Silver is consumable industry metal it is used up : 95% gold ever found is still around 75% of silver is a by-product of mining other metal only 25% is primary product of mining,In 1480 the price of one ounce of Silver was equal to one ounce of Gold, Low supply, high demand Price to skyrocket get your silver and stay long!
 
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hargaoffer

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What Does A Precious Metals Bubble Look Like? -- Michael Maloney

Before you answer that question, take a minute to think about it. Does demand rise in a calm and orderly way, or is there a mad dash for metal as prices spike over and over again?

A gold and silver rush is unlike a rush into, say, stocks or real estate. The two most powerful emotions of markets are greed and fear.

A bubble in stocks and real estate involves only one of those base feelings—greed—a very powerful emotion. Tulipmania, The South Sea Bubble, The Florida Real Estate Craze, The U.S. stock bubbles of 1929, the ‘60’s “’tronics” bubble, and the tech bubble were all driven by the same emotion—greed.

The word bubble is often associated the word mania*—a word that connotes that the public has lost touch with reality. History is replete with manias of all stripes—canal manias, bridge manias, technology manias, and stock manias—and most of them involve a touch of madness when viewed through the rational passage of time.
But a bubble in precious metals will be unlike those manias because it combines both fear and greed. Profit-seekers will see rising prices as a sign to jump into the fray, and people just looking to preserve their purchasing power will make a mad dash as well. It is one of the very few bubbles that combine the madness of greed with the thrashing of panic.

Most of us are familiar with the greed. We have invested in tech stocks, or flipped homes, or jumped into a stock that was rising to meteoric levels. But do we really know what a panic looks like?

Michael Maloney loves to show this photograph because it’s one of the precious few examples that vividly shows the panic part of the equation.

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“In December 1948, Life magazine sent Cartier-Bresson to China to document the turbulent transition from Kuomintang to Communist rule. This photograph captures the pandemonium incited by the currency crash of that month, when the value of paper money plummeted and the Kuomintang decided to distribute forty grams of gold per person. Thousands waited in line for hours as the police made only a token gesture toward maintaining order, resulting in ten deaths by suffocation. Cartier-Bresson deftly captured the desperation and claustrophobia of the scene by compressing the mass of people within a tight frame as they propelled themselves toward the bank building just beyond the right edge of the picture.”

And you might think, “This time is different,”—we have brokers, the internet, and smart phones, after all—people will never stand in line to buy gold and silver. We call it the greatest wealth transfer of all time for exactly that reason—most people aren’t expecting it.

Greed and fear individually are powerful emotions, but when you combine them, you will be experiencing a completely different type of bull market.
 

hargaoffer

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I haven't seen the picture before, great stuff btw --> Thank you very much..! have lot of information about silver, but can't share it at this moment duo to newbie can't post link here...!:(
 

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Silver as a Safe Haven Investment

As investors look for save havens in precious metals amidst fears of currency inflation across the globe, a bullish outlook is projected for silver as a more affordable alternative to gold, though some analysts warn that even if they have been following similar recent price trends, the two metals should be viewed as unique and separate assets.

“Gold is money, and silver isn’t. It kind of has a mind of its own.” said Richard Briggs, a Senior Market Strategist at Lind-Waldock Canada. “Silver should have a good future, but it certainly is more volatile. So if you’re an aggressive trader, you might prefer silver.”

Gold is used by private investors, institutions and even governments as a hedge against potential currency inflation, and the yellow metal has been garnering much attention for this quality surrounding the ongoing debt ceiling impasse in the United States, the euro zone’s ongoing financial crises and worries about the Chinese rise in inflation. The central banks of the US, Italy, and even the International Monetary Fund have huge stores of gold in their vaults for such a purpose, while none of them stock silver bullion as an investment.

Silver has long been associated with gold, and for hundreds of years more or less maintained a ratio of 15.5 to 1 as a bimetallic standard. Today, the silver to gold ratio is around 41 to 1, and this obviously fluctuates widely depending on market activity.

“Bimetallism died about a hundred years ago or more,” says Briggs. “There’s a correlation between gold and silver because people to a certain extent perceive silver as a precious metal. A lot of people believe in it and a lot of people think it’s under-priced.”

According to The Silver Institute, more than 95 percent of annual silver consumption emanates from industrial and decorative uses, photography, and jewellery & silverware, leaving around five percent of total use as store value, depending on whether jewellery is considered an investment. Compare this with gold, where about 60 percent of use comes from jewellery, 30 percent as an investment and around 10 percent for technological and industrial applications.

“Silver is theoretically an industrial metal and its claim as a precious metal is not that concrete,” says Briggs. “You’d think it would be less volatile, but as long as I can remember silver has been significantly more volatile than gold. It’s just the nature of the marketplace.”

Briggs says that he believes the largest factor for today’s differences in the gold and silver market has to do with who are the players doing the bulk of the investing in the respective metals. He says that silver’s lower value appeals more to investors looking to make money on the short term, because the fluctuations are more conducive to quick buying and selling.

“The people who trade silver tend to be more active, and more aggressive,” he says. “The people taking concrete steps for the longer term are typically in gold. I’m sure there are a lot of people who have put silver aside for the longer term, but compared with gold there’s a lot of fast money in silver.”
 
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