As they say – A little knowledge is a dangerous thing.
Ok. Lets talk about my theories RE: precious metal investing.
Gold is your big boy obviously. Platinum, Palladium, Rhodium are up there too. But we have we have an unsung here amongst them as well.
Here’s a few reasons why precious metals make great investments.
- Limited supply – you can’t make more gold unless your Rumpelstiltskin and have a thing for hair.
- Great in an uncertain economy – people stockpile gold and silver when they’re unsure of the economy. Demand outweighs supply and the price goes UP UP UP.
But here’s the real kicker for why silver is the darling of the precious metal game:
- Industrial Application.
Small quantities of silver are used in a vast quantities of electronics.
What does this mean?
When electronics are thrown away there is too little silver in them to make it worth salvaging. I.E the silver in a digital camera might be worth $1 but the cost of getting the silver out of the camera is $1.50.
The silver in stuff thrown away (most electronics) is silver that is taken out of the economy forever.
Over time there is less and less silver available, and because no one is really discovering massive quantities of silver in the ground any more, eventually demand overtakes supply and the price of silver goes UP UP UP.
Right now the Silver price is at an all time low. Some people would get scared. Most people get scared. I say now is the best time to buy!
We’re at the ground floor baby, there’s only one direction to go!
If you got here from my other article, get back to it here.