Silver price is now just below $30 per troy ounce. Silver priced peaked in 2010 and reported a great year. January’s performance was lacking overall, but this is still a great time to buy silver bullion. Silver’s stability in the market, despite being a volatile metal that moves with the market, is proof of the metal’s high demand. If you’re still nervous about buying, consider four reasons to start buying this precious metal before the first quarter ends.
1. Silver is low-cost.
Silver doesn’t cost anywhere near the price of gold, and yet it is similar to gold in its hedge and store of value worth. You could easily purchase silver coins with the surplus of your week’s paycheck—unlike gold investment, which could cost you half a week’s paycheck. Silver’s low price keeps it accessible to Middle America, and of course, that’s the population who needs stability the most.
2. Silver is in a win-win situation.
Silver’s price may periodically drop, but this metal is still in a long-term win-win situation. If the economy gets progressively worse, the population will begin investing in silver, which increases the price and increases demand. If the economy improves, silver’s industrial and retail demand goes up, as there are just so many more uses for silver than gold.
3. Silver has the most popular U.S. Mint designs.
When you buy silver bullion through the U.S. Mint you can buy new and patriotic designs like the American Silver Eagle and the American Veteran’s for Disabled for Life silver dollar. These affordable and beautiful coins have a unique glimmer all their own.
4. Silver has better liquidability than gold.
Silver is the alternative to gold and it benefits from investment complications of gold—such as hoarding, rising prices and supply issues. Silver has less value than gold and thus can be more easily converted into cash. Gold on the other hand, is so valuable it’s an investment tool and is usually kept in storage or in a bank.
What about you? Have you made plans to buy silver bullion? Are you afraid of losing your investment? You actually stand to lose much more if you invest in the stock market or in mutual funds. Silver retains value as long as you keep the bullion pure; thus you can’t really lose any value, even if you store it for two decades. Silver is your way out of this recession! It’s time to start thinking about silver investment for 2011.