Though most people turn directly to gold when they begin buying precious metals for investment purposes, there are several reasons that you should consider buying silver instead. Gold has long been the standard for the value of money, but you can be sure that other metals have the potential to reach soaring heights in the near future.
To understand the future of silver, you must first understand its past. The truth is that silver has always enjoyed a great deal of respect, and has been used as currency for thousands of years by almost every civilization. The power that this metal once had was close to that of gold. Its beauty and intrinsic value was never questioned, and people sought it out for monetary and luxury reasons.
Prices began a steep decline when the major silver strikes of the late 1800s were made. Mining companies suffered the flood on the market that the Comstock Lode and other strikes caused. When the prices dropped, many companies were left broke, and the government eventually had to step in and buy up great stores of the metal. This was in an effort to stabilize the prices, but it has taken a long time for those prices to begin rising again.
Investors are seeing prices on the rise again, though, for several reasons. There are hundreds of uses for silver, from industrial to medical, that have nothing to do with decorative uses. Many of these uses actually render the metal useless in any other form. This is especially true for the medical uses, as silver has natural antibacterial properties. Once the metal has been purposed for burn and wound care creams, it can never again be used in any other form.
As you might imagine, these industrial, medical, and electronic uses have put a strain on the stores of precious metal that the government owns. Mining companies are, in fact, struggling to keep up production so that supplies can meet the demand. As any economics student can tell you, when the supply is low and the demand is high, the prices will go up. Those investors that already have stores of precious metals are seeing excellent returns.
It’s not too late to take advantage of the precious metals market. Other metals, such as gold, platinum, and palladium, are all experiencing appreciating prices in the market, and you can enjoy the profits.