Diversify, diversify, diversify. This can be true not only as it applies to types of investments, but can be true when investing in precious metals as well. If you own more than one type of precious metal, you will be better able to ride out the normal ups and downs of the financial market.
Lorimer Wilson, Editor of FinancialArticleSummariesToday.com and munKnee.com listed 29 reasons for owning silver over gold, and he said his list is still growing. While we won’t go into all 29 of his reasons, we’ll mention a few of them here to whet your appetite. (Read his complete list here.) Top of the list was that the silver battle is much easier to win due to its smaller market size.
Central banks have no physical silver to use to manipulate the market. Most silver mined is consumed in industrial uses while the amount of above ground gold grows each year. Silver is in higher demand for day to day life due to its many industrial uses.
Due to the lower cost of silver, the average person is better able to afford it in greater quantities as a means of investment than he could gold. Silver has also been in a supply deficit for over 50 years, making the demand higher. Few investors have physical silver in their possession.
Due to the value of gold, there have been more counterfeiting issues relating to gold than there have been for silver coinage. Gold confiscation laws are still on the books in the US, but there are currently no silver confiscation laws. If any of these reasons appeal to you, then you may want to consider adding silver to your portfolio to help diversify and protect your assets.
Tags: Precious Metals, self directed ira
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