Why invest in silver?
Historically every major fiat currency such as the U.S. dollar and the British pound have self-destructed in what is popularly called hyperinflation (that is, extreme decreases in purchasing-power) caused by either unlimited increases (or printing) in the supply of that fiat money by the issuer or accelerating loss of public confidence in the continued value of the money or the economic or political fortunes of its issuer, or both.
What is Fiat money and how is it created?
Fiat money is paper money or a medium of exchange composed of some intrinsically valueless substance which the issuer does not promise to redeem in a commodity or a fiduciary money. The link below does an excellent job on how the U.S. and other governments are creating fiat money out of thin air
(In particular, begin with Chapter 6 of this video):
http://www.anglofareast.com/crash_course.php
HERE ARE SOME EXCELLENT MODERN DAY EXAMPLES OF HOW FIAT CURRENCY WILL NOT PRESERVE YOUR WEALTH DURING A NATIONAL OR GLOBAL FINANCIAL CRISIS:
http://www.thefinancialphysician.com/blog/?p=1100&cpage=1
http://www.mydigitalfc.com/currency/fiji-devalues-its-currency-military-asserts-control-850
http://www.belreview.cz/articles/3252.html
http://www.rferl.org/content/Switzerland_Becomes_First_Major_Western_Currency_To_Devalue_Currency/1509618.html
http://www.creditwritedowns.com/2008/12/russia-devalues-currency-again-as-foreign-reserves-plummet.html
http://ezinearticles.com/?Japan-is-About-to-Devalue-Its-Currency—Heres-How-to-Profit&id=1889130
AMERICA’S HIDDEN DEBT PROBLEM (Halfway down the screen is a video showing an interview of Senator Alan Simpson and Former White House Chief of Staff Erskine Bowles)
http://money.cnn.com/2010/03/01/news/economy/budget_debt/index.htm
GREECE’S ECONOMIC CRISIS IS AMERCIA’S ECONOMIC WARNING:
http://news.yahoo.com/s/ap/20100310/ap_on_an/us_power_and_debt_analysis
I choose to invest in silver because silver is money. Real money that has been in circulation since 700 BC. It’s a very unique investment that wins whether the economy is doing well or is doing bad. When the economy is doing bad and everyone is printing money, as demonstrated by the links listed below, silver is an excellent hedge against inflationary or deflationary pressures:
http://finance.yahoo.com/news/US-debt-will-keep-growing-apf-219502322.html?x=0&sec=topStories&pos=5&asset=&ccode=
http://www.federalbudget.com/
http://www.marketoracle.co.uk/Article15521.html
http://www.japantoday.com/category/politics/view/japans-new-stimulus-likely-to-require-y72-trillion
http://www.wiseupjournal.com/?p=826
http://atimes.com/atimes/Southeast_Asia/KI22Ae01.html
http://mises.org/story/3390
And when the economy is doing well, then the industrial demand for silver will increase, especially with all the new (and old) ways silver is being used today. See the links below:
Silver Used In Batteries
http://blogs.computerworld.com/apple_to_pioneer_use_of_silver_zinc_battery_technology
http://gizmodo.com/5060103/silver+zinc-batteries-coming-in-2009-with-40-better-run-time-than-lithium+ion
Silver Used In Solar Energy
http://www.nanomarkets.net/perspectives/articles.cfm?articleID=169
Silver Used In Medicine
http://www.medicalnewstoday.com/articles/158575.php
http://www.sterling-silver.ws/articles/about-silver/medicinal-uses-of-silver.htm
http://www.silversinus.com/historical-current-antimicrobial-uses-silver.html
http://www.doulton.ca/silver.html
http://www.silverinsights.com/_pages/_uses/uses.html
Peak Silver
According to a U.S. Geological Survey, silver will be the first of the elements on the periodical table to go extinct by 2020.
http://www.financialsense.com/fsu/editorials/stangelo/2009/1111.html
http://www.kitco.com/ind/morgan/aug072009.html
http://seekingalpha.com/article/4410-is-us-silver-mining-in-irreversible-decline-proposed-etf-ticker-slv
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