Dear Money & Crisis Reader,
I’ll say it once and I’ll say it again: Investing in physical Silver is one of the best ways to reinforce your finances against a crisis.
Small pieces of silver are perfect for trading during a catastrophic event when you can’t access your bank accounts.
It’s one of the few investments that can climb fiercely during a recession.
And it’s more versatile and divisible than Gold — which should also hold its value, but can be difficult to trade with because even a small piece is so valuable.
And right now, silver is on sale.
Olivier Garret, the CEO of the Hard Assets Alliance is here to give you the 411 on the best bargain in Precious Metals today.
All the best,
Editor, Money & Crisis
P.S. Click here to claim your free step-by-step guide to taking advantage of the #1 bargain in precious metals.
It’s Time to Buy Silver
By Olivier Garret
People love bargains.
They will travel miles for a good sale.
But this behavior is rarely present in investing. Driven by fear of missing out (FOMO), all too often investors follow the herd and buy assets in a bubble.
Do you remember the investment craze when Bitcoin was trading above $19,000 last December? Folks were buying up Bitcoin left and right… and the mania quickly turned into devastating losses.
On the other hand, when Goldman Sachs was trading at $52 in November of 2008 or GE under $7 in March of 2009, few investors had the guts to buy amid collapsing markets.
Only true value investors, like Warren Buffett, were buying.
My point is that forward-looking investors should always look for value in unloved assets that are trading near lows. That’s especially important in a world of low yields.
Today, gold trades under $1,300/oz. It’s been out of favor for more than seven years after it reached all-time highs in 2011 and some pundits were predicting $10,000 an ounce or more.
Gold is now trading at a 35% discount from its previous high. It is a true bargain in a world laden with record levels of debt and artificially inflated financial assets.
In the long run, therefore, gold has nowhere to go but up. However, there is an even more attractive investment you can get into today.
The Best Bargain in Precious Metals
Silver is trading under $16/oz as of this writing, which is down two-thirds from its 2011 high of $49.
Today, silver’s value relative to gold is more attractive than ever since the Great Recession. The gold-to-silver ratio — which measures silver’s price compared to gold — is more than 76 to 1. That means it would take 76 ounces of silver to buy one ounce of gold.
Compare that to an average of 62 to 1 over the last two decades, or 47 to 1 throughout the twentieth century.
Yet few investors are paying attention to silver due to its “unattractively” low price.
Meanwhile, silver continues to be one of the most important industrial metals — with few cost-effective substitutes.
The metal has higher electrical and thermal conductivity than any other element. Which makes it an important component in most electrical applications.
In fact, silver is the critical part of many high performance batteries, solar panels, and printed circuits whose demand is skyrocketing as renewable energy picks ups momentum.
Silver also remains an important element in the manufacturing of mirrors, photography and printing. And can even be used to kill bacteria, algae and fungi.
They are used to purify, sanitize, preserve and filter all sorts of liquids. All in all, silver demand in manufacturing is expected to reach 680 million ounces in 2018, up 27% since 2013.
But while silver demand is growing, its supply has been limited.
Global silver mining production has since declined by 50 million ounces since 2015. That’s bad news for manufacturers but good news for investors as the silver price is likely to soar under constrained supply.
Silver Will Beat Gold in the Next Recession
Silver is still a bargain but that will change soon.
History shows that as precious metals come into favor again, silver is likely to beat gold.
Between 1970 and 1980, gold appreciated by 24 times its value… but had you been holding silver, your investment would have grown 30 times.
In November 2008, when the housing bubble burst, gold bottomed at $730/oz and silver at $9.3/oz; by April 2011 gold reached $1,890/oz and silver $49/oz, up 2.6 and 5.3 times respectively.
The reason silver tends to rise faster than gold is that the silver market is much smaller than gold’s. And a small increase in investment demand results in shortages.
As such, it’s reasonable to expect that during the next rally in precious metals, silver will the best metal to hold.
You can learn everything you need to know about investing in silver for a crisis in this FREE e-book: Investing in Precious Metals 101: How to Buy and Store Physical Gold and Silver.
Learn how to make asset correlation work for you, how to buy metal (plus how much you need), and which type of precious metal makes for the safest investment. You’ll also get tips for finding a dealer you can trust and discover what professional storage offers that the banking system can’t.
It’s the definitive guide for investors new to the precious metals market. Get it now.
To golden opportunities,
Founder and CEO
Hard Assets Alliance
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