Most of us think of gold when considering whether to invest in precious metals. Yet, you can buy silver bars at a fraction of what you would pay for gold. Furthermore, you get the same hedge properties that gold offers by investing in silver. One fact many people do not know is silver is primarily an industrial metal. It can withstand high fluctuations in temperatures and is an excellent conductor of electricity. Silver is used in hospitals to treat infections.
The use of silver in industry has grown by leaps and bounds over the last 30 years to the point where the supply cannot keep up with production. In addition, you can also buy silver bars for investment purposes or use silver as a safe haven against riskier investments. The current spot price of silver is around $30 per ounce, and is a bargain at this price. However, the price will be trending upward so it is wise to buy silver bars now.
Both gold and silver are recovering from a price adjustment caused by the debt debacle in Europe. The euro is weak and the dollar has gained strength as a result. When the dollar is strong precious metal prices typically dip. However, this is a temporary situation because the debt crisis in Europe is beginning to stabilize. The euro will again creep back up and the dollar will start its decline. Silver will react by going up.
When you compare silver investing to the dollar, bonds or stocks you quickly see that silver is indeed a better investment. The dollar is a flat currency backed by only the government and the FED telling us it has worth. Stocks, bonds, and dollars are not backed by anything real. All three offer the potential of staggering overnight losses. Yet, silver has been incredibly stable for over a decade now, and will soon be going up as Europe fixes their debt problems.
Finally, most of think of gold when we consider investing in precious metals, however gold is indeed expensive. On the other hand, silver offers the same hedge qualities as gold but is much less costly to invest in than gold. The spot of silver is currently around $30 an ounce. The lower price was caused by the debt crisis in Europe as the euro weakened against the dollar. A strong dollar typically results in lower silver prices. However, the euro is expected to recover and the lower dollar will cause silver to rise. The time to buy silver bars is now, before the coming price increase.