Minggu, 31 Januari 2010

Investing in Silver

Investing in Silver

Silver is a precious metal and has been regarded as a form of money just like gold and store of value. However, since the end of the silver standard, silver has lost its role as legal tender in the United States.

In 1971, the President Nixon has removed the gold standard and the silver standard and after that the US Dollar is just the tender. Modern Money is backed by the full faith of the governments around the world but does not have any intrinsic value in it.

China is the largest consumer of Silver since several centuries. However, recently China has started motivating their citizens to invest in silver. This may be because of the money printing activity of the US Government. Recently, the federal reserve has increased it’s monetary base from $ 800 Billion to $ 2 Trillion. In other words, the US Government has printed almost $ 1.2 Trillion out of thin air only.

And there is a potential danger that this will dilute the purchasing power of the existing money in the circulation. China is the largest holder of UD Treasury Securities. This means that China will be affected the most in terms of purchasing power because of the money printing activities of the US Government.

And that’s why the Chinese Government has started motivating their citizens to start investing in Silver.

US $ 5 Silver Certificate

American Silver Eagle Bullion Coin

How to Invest in Silver? -

There are various forms in which you can store the silver. Here are the various methods of  investing in Silver.

- Bars
- Coins
- Rounds
- Exchange Traded Funds
- Certificates
- Accounts
- Derivatives
- Mining Companies
- Spread Betting

You can invest in silver from the any of the above ways. According to many global investors, right now the silver price is undervalued and it will go high further and thus it’s the best time to buy silver at low price. Because you will never find silver at such low price.

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