Silver Investing - Is It Too Late?

Less than a month ago, when silver closed above $20, I posted an article titled "Silver Investing--Is it Too Late at $20?" On Friday, October 1st silver closed considerably higher than $20. I reasoned when I asked the "$20 question" that because of the massive manipulative short position that has existed for over two decades, the upward price potential was tremendous - if and when the manipulation was phased out.

Briefly; JP Morgan inherited the short position when it took over the failed Bear Stearns at the request of the U.S. government. Almost a month ago, JP Morgan announced that it will be closing its commodities trading desks. Those who knew of the huge short position are curious to know if it will be phased out. Early signs are promising. For over three weeks there has been no sign of manipulation, despite the steady price increase during that time.

During the month of September the price of gold increased about 4.9%, while the price of silver advanced about 9.9%! The price of silver made multiple 30-year records the past week and a half. After years of underperforming gold, some say because of silver price manipulation, it is telling that silver is outstripping gold recently. The price of gold is up because of fear of inflation and economic woes. However, economic woes should affect an industrial metal like silver adversely. And fear of inflation should not affect silver more than gold. Perhaps the price of silver has really been set free.

Speaking of inflation, there has suddenly been talk of deflation recently. Don't let it fool you, even if the talk gets traction. There is huge money at stake on Wall Street. Wall Street is not positioned for inflation. And because the precious metals markets are so small relative to the equities markets, and there is so much money to move, it will take months. I won't go so far as to say the government and Wall Street are conspiring, but if the public fears deflation, both the government and Wall Street win. The government wins because they hold off inflation that much longer. And Wall Street wins big by having time to reposition for inflation, that they know will come.

Despite public talk of deflation, private fear of inflation has pushed the price of precious metals higher. And the gold to silver price ratio moved from 63 to 1 down to 59 to 1 the last few days. Perhaps silver investing is getting back to the fundamentals. It's not too late now.

Learn how to protect yourself against the current (and impending) economic disater with silver investing. For more information: http://www.esilverinvesting.com

Silver Investment - More Reasons Why it Makes Sense

Silver is consumed in industry more than ever before.

People think of silver in terms of its price and value. The truth is that the industry uses more and more silver year after a year, so if you're really looking into a good investment, then silver is definitely a good option. One of the main reasons why we use silver is jewelry. We make necklaces, bracelets and other jewelry out of silver because it is pretty, as well as valuable. People will never lose interest in silver jewelry, so as long as it's made, silver will be needed.

It is possible that you don't realize that silver is used in medicine to a great extent. Dentists use it for dental fillings, and since philosophers wrote about the healing attributes of silver, we use it in wound dressings, and even Band-Aid. The truth is that silver does help us heal better, and because of that the industry will always use it.

Of course we use silver in high technology items as I mentioned before. Almost everything around you, be it a printer, a desk lamp, or even a TV screen, has some silver in it.

Another way we use silver is to make money. It is funny to think that until 1960 for most of the U.S. coins were made in 90 percent silver. Watch the videos mentioned in the introduction for a good historical summary of why that was.

When currencies get weak people turn to precious metals.

There is a tendency whenever the economy is bad and currency loses its value for people to turn to precious metals such as gold and silver. It's close to impossible for silver to devalue over any significant period of time. People understand this, and that is precisely why they invest in silver when they feel that the value of their currency or any valuable currency in the world is dropping dramatically. When they fear an economic crisis, they go to silver and precious metal brokers and increase the bias of their portfolio towards safe value storage that precious metals offer.

That's a tendency displayed by every nation for many years. Use this knowledge for your own gain.

Silver price keeps increasing.

The last reason why silver is a great investment is that the price of silver keep increasing. As I've mentioned before, silver is becoming more and more valuable and in just a few short years, it has doubled its market value. In 2005, it cost $7 to buy an ounce of silver. Now, it costs $17-$19 to buy an ounce of silver. The trend that you see here will not change. The price of silver will always increase, and the fluctuations will be minor within the overall context of silvers increasing scarcity and increasing demand.

The general tendency will be that gold will become more valuable and silver will follow but also have additional increases due to its unique additional uses. It is best for you to spend some money on gold and silver now so that you have a solid investment that you can realistically get back with significant increase in value in just a few years.

Coins As Mode of Silver Investment

For few people, making investment in the coins is just a hobby. They enjoy possessing these coins which are an in-separable part of our rich cultural heritage, or some coins which offer insight into other countries of the world. However, there are many other people who collect the coins for another reason; that is investment purpose.

Quite like many other collectibles; coins can also appreciate in their values over a period of time. An investment made wisely can help a person earn a large amount of money on his initial investment. It is a fact that other items like paintings, stamps or even baseball cards become valuable because lots of other people desire them, coins on the other hand are manufactured from the precious metals like silver and gold whose value appreciate with time apart from the additional value which it gains due to the interest and prestige attached to the coin.

When a person goes and buys a Morgan Dollar as an investment, he is getting two separate items in one item. If we see it practically, he gets a coin made of 24 grams of silver. As per the current market value of silver, this can provide a coin with a value which can be derived if it is melted down to be simply sold as silver.

But the Morgan Dollar is much more than it's silver. Most people collect it because of its eventful history- including that more than 0.5 million of them were minted but were never circulated between late 1800s and the early 1900s. This is the reason for their continuous demand, which is mint-grade Morgan Dollars.

As with any collectible product, you must first do thorough research and fully understand the functioning of the market before proceeding with making any investments in the coins for money generation.

You must remember that investment in the coins in a long term one and you can get into serious financial troubles by trying to make a large profit in short term by buying or selling these collectible coins.

Michael has been writing articles online for 10 years. Check out his latest website Stokke Sleepi Crib which help people find more about Stokke crib.

Silver Investing - It's Not About America Anymore

For the last couple of decades, the primary driver of the price of precious metals has been the value of the U.S. dollar. On days when the dollar moves up against other major currencies, the price of precious metals moves down. On days when the dollar moves down against other major currencies, the price of precious metals moves up. This inverse relationship exists because all precious metals are denominated in U.S. dollars, and because there hasn't been a lot going on the last two decades that would cause people to put their money into precious metals instead of the U.S. dollar. Owning the dollar has been more desirable than owning gold or silver by most because U.S. bonds pay interest. Not only does owning physical gold and silver not pay, it costs to store and insure.

That may have all changed on November 30, 2010. The markets opened lower on European debt fears. Ireland got its bailout. But now Portugal and Spain are a concern. Out of habit, money flowed into the dollar, pushing it up about one percent against the euro. But an unusual thing happened simultaneously; the price of gold and silver, in U.S. dollars, moved up too. Instead of moving opposite the dollar as usual, gold and silver moved the same direction. At one point midday, the price of gold was up 1.3% despite the dollar being up about 1%. At that same time, the price of silver was up 3.9%, three times the percentage increase of gold.

Why did the price of silver and gold move up despite the rising dollar? A number of European investors put their money into precious metals instead of the dollar. That's why. They are losing faith in the dollar. They, as I, would rather pay to own silver that be paid to own dollars. Because the gold market is tiny compared to the global bond markets, it doesn't take a very large percentage of the available capital moving from bonds to gold to affect the price of gold. And the silver market is a tiny fraction the size of the gold market.

Add to this the fact that despite our huge economy and tremendous disposable income, Americans only account for about 20% of the precious metals purchases the last few years. We Americans tend to analyze investments within the context of the American economy and values. But in precious metals, America does not dominate.

Gold, in U.S. dollars, was $35 below its all-time high today. Silver was a similar percentage below its recent 2010 high in U.S. dollars. But in Euros, gold made a new all time high.

It seems that Quantitative Easing, compliments of the Fed, has delayed the day of reckoning for the U.S. and its debt crisis. Which means it will be a while longer before many Americans begin to wake up to the fact that their dollars are on the way to devaluation. As the debt crisis unfolds in Europe, depend on Europeans to drive the price of silver higher, even in the face of a strengthening U.S. dollar. Then, when the dollar begins to weaken, the weakening dollar will continue to drive the price of silver.

Learn how to protect yourself against the current (and impending) economic disaster with silver investing. For more information: http://www.esilverinvesting.com