Friday, March 15, 2013

Silver Is A Wise Investment Choice

By Craig Ragsdale


Right now there are many reasons why silver bullion is so attractive on a wide scale. The affordability of these vehicle and the intrinsic value that it holds make it a top pick for individuals who have concerns about the future. There is no single size fits all scenario when it comes to this precious metal, and no single amount or type that will fit well in all situations and circumstances. You will need to do some research and comparisons to identify appropriate options that work well with your objectives and strategies.

One way to invest in silver is through stocks, bonds, and mutual funds. Essentially, you can "own" silver without ever touching actual physical ores. There are also ETFs (exchange traded funds) that offer ownership as well. However one drawback to these paper ownerships is that it mirrors owning paper currency, being that it doesn't have the inherent security or safety of physical ownership.

Despite efforts by the US Government and the Federal Reserve, efforts at stimulating the economy have been futile, and many people, economists and citizens alike, suspect that currency devaluation will occur in due time. This could be a result of one of two different scenarios. One, quantitative easing may result in hyperinflation, which will naturally occur when money rates are no longer artificially kept up, and thusly paper currency will be rendered worthless. Two, the entire financial systems could simply collapse, for many reasons, which would also make paper currency useless and worthless.

Whether or not you are one who is concerned about the aforementioned situations or not, there are still many reasons as to why owning physical gold comes with many advantages. Choosing mining stocks and bonds backed by actual bullion bars can be a good move, however neglecting to own actual physical bars yourself may prove to be a big mistake. If and when there is a full economic collapse, only those retaining physical materials will have any actual worth.

Truly smart investors cover all of their bases well, and this is one of the major reasons that diversification is used so often as a strategy. Diversification means having many asset classes and sectors covered, and that you can experience gains in some areas even if you are experiencing losses in others. Although the risk of currency devaluation and hyperinflation may seems minimal, anything is truly possible. Therefore, it is important to understand the risks, and those who do will insist upon owning some amounts of physical form as well as other vehicles within the market.




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