There has never been a better time in history than now (2011) to buy silver bullion.
Why buy silver though? Before I explain, if you are just looking for the best place to buy silver from, then MoneyPress recommends GOLDMONEY, these guys are the market leaders and who we buy silver from ourselves.
In this article I’ll walk you through why buying silver is a wise move and also the best way to do it, even if you are a first time buyer and have no idea how to buy silver or are an experienced investor you’ll find valuable infomation here to guide your investment.
Buy Silver UK
The GoldMoney company, based in the British Channel Islands, is very well trusted and one of the largest precious metals dealers worldwide, storing over 1 billion dollars worth of precious metals for its customers.
However, as I’ll discuss below in this article, you absolutely MUST buy physical silver, and not paper silver, such as EFT’s and other forms of virtual silver, which is why buying from GoldMoney is the way to go.
GoldMoney store your silver and gold, palladium and platinum for that matter, in their secure vaults across the world.
They’re audited regularly by a third party, to ensure all the silver they have on the books is actually in the vault, so the ratio is exactly 1:1. I’ll explain the reason this is important in more detail for you below.
Why Buy Silver Bullion?
There are numerous compelling reasons to invest in silver. I have listed some for you below:
- The general public have recently in the UK and US especially been hit hard in the stock and housing markets and are now looking for other options, such as silver and gold, which is pushing prices up.
- The amount of physical silver above ground is actually very small, and the amount of money starting to pour into this market is staggering, and when the masses work out the potential in the coming months it will sky rocket the price
- The last major run on silver and gold happened in the 1970′s and a silver boommed upto almost $50 an oz, but back then there was only 10% of the people today in the market, now there is a lot more, which has potential to push prices very high very quickly. Also there is about 10 times more fiat currency in the world to spend and people are more investor oriented these days.
- Silver is used in industry, such as computers, phones etc…so as these demands increase so will the price of silver.
Even just taking the fact that there is approximately x10 more money in circualtion today than in 1980, where silver reached a high of almost $50 an oz, I believe a silver price of $100 USD is still way too low. You can’t look at the price back then and expect the same result now, because circumstances are very different, and the inflation rates in the US and UK and also higher than what we the public are being told.
For the readers that are not aware of what is currently happening in the silver market, I will now explain why buying silver is a great choice right now. To understand why silver prices continue to break through to new record highs almost weekly in 2011, you first need to understand the situation with the US dollar and how this also effects the British Pound and other global currencies.
The US dollar continues to lose it’s buying power and as the Federal Reserve Bank of America (privately owned company by the way) continue to progress with their quantitative easing program, which is essentially printing more US dollars. What this causes is a dilution of the money supply and and reduction in it’s purchasing power, and hyper-inflation is inevitably on the doorstep for the US economy in the not so distant future if this continues.
Similar situations were experienced in Weimar Germany in the 1920′s and also more recently in Zimbabwe and Yugoslavia. The key point here is that people are very quickly losing faith in the US dollar, which is the world reserve currency, and buying silver and gold to protect their wealth.
At the moment silver prices are around $42 an oz, but we have seen nothing yet, because as the masses wake up to what is happening with the US dollar, which will have a knock on effect to all global currencies, they will run to the safe havens of silver and gold, which will shoot the price of these precious metals sky high.
However reader take note, the last time the world experienced a boom in silver was in 1980, when it reached $80 an oz, and this was caused by investors running to buy silver bullion and also gold to protect their wealth as the stock market faultered.
Today we are moving into another identical scenario however with one giant difference.
The last time the price of silver was pushed up was due to North American and Western Europeans buying silver.
Back then the Russians and Chinese and the rest of the world were not able to join in, yet now they can because they have access to buy precious metals now. What this means is the masses running to silver to protect their wealth is a lot larger in number than in 1980, which means the price of silver will be skyrockted.
Furthermore the Indians in 2011 have been selling their gold and reinvesting the money into silver, as they are starting to wake up the massive potential gains that silver potentially has.
This is known as ‘Bull Market’ and we are now in the most exciting phase of this market, which lasts the longest and experiences the largest gains. If you own physical silver and also gold you stand to make very large gains in the coming months and years. In 2011 alone silver has gone from $22 an oz to over $42!!
Many respected economists adn investors such as James Turk, not main stream central bankers as they will only try and hide this from people, believe $8000 an oz for gold and $1000 an oz silver is very possible.
History Repeats Itself in the Silver Market
As any wise investor knows, it is always good to look at the past to see how a potentil investment has performed. If we look at the track record for silver we see a very interesting picture unfolding which is destined to repeat itself.
In 1980 the silver price was $80 an oz, and you could buy an average single family home for under 1000 oz!! The interesting thing however is that back then Gold was at the $800 mark, and today Gold is over $1400.
The balance betweem the two metals is skewed, and a correction is on the horizon, as silver it well under valued right now, even at $40 an oz, and a great bargain right now. I also believe investing in gold is a good move also, and having a mix of gold and silver in your portfolio is a good idea.
What is also important to note is that currently all currencies around the world are now fiat currencies, which is currency that is backed by nothing except the governments decree to back them up, and if we look at all fiat currencies in the past they have all eventually been debased and gone to ZERO!! Not one has survived and the same fate awaits the US dollar and British pounds, plus all other currencies in the near future.
If all your wealth is in these currencies then you stand to lose everything, which is a scary thought, but unfortunately a very real one. All one needs to do is look at the examples of Zimbabwe, Yugoslavia, Weimar etc…and learn from this. This again is why investing in physical silver and gold is such a wise move, as they are a good store of wealth, and a hedge again hyper inflation.
There will come a time when silver is eventually over valued, yet we are no where near that point yet in 2011, however when silver does reach that point,which could potentially be at the $1000 an oz mark, I personally would sell and use the cash to invest in real estate.
Dark Clouds on the Horizon
If one was to only watch the main stream media channels and listen to the distorted truths from central bankers such as chairman of the US Federal Reserve Ben Bernanke, you could be forgiven for thinking the global economy is on the mend and the global financial crisis of 2008 is all but over.
Unfortunately this is far from the truth and this editor can only see the worst yet to come. Since 1971 when US president Richard Nixon removed the US dollar from the gold standard, the global economy has been like a freight train out of control and about to be derailed.
Before this fateful move in August of 1971, the US central bank was not allowed to print US dollars unless there was an equivalent amount of gold to back it up, hence the name ‘gold standard’. When this tie to gold was removed it gave the central bank free reign to create as many US dollars out of thin air as they wanted, which is exactly what we are seeing today with the US federal reserves Quantitative Easy (printing money!).
Considering all global currencies are pegged to the US dollar, this move to remove the US dollar from the gold standard effects every country, so living in the UK does not protect you from these runaway activities of the US federal reserve.
Since the fed have been engaging in this quantitative easing or creating more US currency, the buying power of the dollar has been weakened, and we are seeing clear signs of hyper-inflation of the horizon. Just before the Weimar hyper-infaltion in germany, and the Zimbabwe one also, the stock markets rallied due to the influx of created money that these governments were printing.
This is what we see today and one of the best ways you can protect your wealth from the imminent financial disaster about to hit the world and potentially wipe out the middle class of the UK is to buy silver and also buy gold which have historically proven to be excellent storage of weath and protection against inflation.
If you want to buy silver or gold, we buy from and highly recommend using GOLDMONEY they also have more articles on why to buy silver.