Top 5 Reasons Why We As Christians Invest in Silver:
A portfolio must be diverse. It should include stocks, bonds, deposits, commodities and precious metals. The recent investor flight to precious metals, notably gold and silver, indicates that these two precious metals will now be at the top of all investment strategies for a long time. So, why buy silver or gold at all, why is it considered such a safe haven?
Here are the top 5 reasons for investing in silver:
1. The Nature of The Metal
Since the earliest writings in the Bible, man was instructed to be in God’s money (Haggai 2:8) and not the money of man, (Proverbs 11:1), with at least a portion of their portfolio. Silver is a “precious metal”. Since the dawn of time silver has been considered the store of value as a form of money. It is scarcely found and possesses superior properties. It does not corrode easily, can efficiently reflect light, is malleable and an excellent conductor of heat and electricity. Owning silver is owning status and wealth. It is a reflective white metal full of romanticism.
Silver makes for an excellent hedge against inflation. In August 2005, silver was at $6.75 per ounce; In August 2011, it is trading at around $43 per ounce. That’s an appreciation of 637% in 6 years – more than 100% appreciation per year. Gold was going at $434 per ounce in August 2005; today, in August 2011, it is at $1,880 per ounce. That’s an appreciation of 433%. So, though both gold and silver make for excellent hedges against inflation, statistics prove that silver has made more money for investors.
3. Protection against geopolitical jitters
There is a whole lot of unrest in the world. Investors are looking at turbulent times ahead what with all the recessionary noises in the developed nations, talks of China’s economy hard-landing, and the unrest in a few Middle Eastern kingdoms. Though the sky will not fall and things will stabilize over time, investors are placing their bets on precious metals like gold and silver. It seems this investment trend will continue for sometime, and therefore it seems like the value of both precious metals will continue their upward march.
God say’s in Proverbs 11:1 not to partake in dishonest weights and measures it’s an abomination, honest scales are a delight. Paper dollar money is a dishonest weight and scale managed by the Federal Reserve which is nothing more than an IOU. Gold and Silver is considered an honest scale, an ounce is an ounce! Haggai 2:8 says “the gold is mine, the silver is mine”.
4. Silver Will Always Be in Demand
eBay is arguably the largest online marketplace that exists. Charting from 2007 to Q1 2011, precious metals sales of Gold & Silver have skyrocketed with the demand for silver outperforming both gold and platinum.
4.1 Industrial Demand
In addition to consumer demand, commercial and industrial demand for silver is rapidly rising. If it keeps going at the way it is going now, chances are that the rate of increase in silver’s value will be much faster than the rate of increase in gold’s values. Silver is no longer just a beautiful precious metal – it is much more than that.
Silver is also an industrial metal. Though its use in the photography industry has been dropping because of the advent of the digital camera, its use continues to gallop in the following areas:
1. In electric appliances (Plasma TVs, mobile phones, computers, washing machines, and more), because silver has the lowest resistivity as compared to other industrial metals.
2. In photovoltaics, because silver is one of the highest reflectors of light.
3. In soldering, because the EU has banned using lead in the soldering process.
4. In medical equipment.
5. In clothing.
6. In other uses like in RFID tags, water purification and in food hygiene.
7. Now, the latest trend is to use nano-silver particles in order to deliver silver ions.
4.2 Fabrication Demand
It is estimated that over 25% of silver is used to create jewelry and cutlery and the demand for these commercial items is ever increasing. The Chinese are buying silver like never before. In 2010, the Chinese bought over 14% of the global silver (according to Chris Berry, the founder of Mountain House Partners). Today, they are trying to get their hands on the physical metal and stock it as an investment.
The total fabrication demand for silver in 2010 was 878 million ounces. 20 countries could supply only 735 million ounces. Recycled silver met the shortfall. The demand for silver continues to surge, while an increase in supply does not seem to be forthcoming. There is no doubt that silver’s market value will continue to skyrocket in the years to come. The same cannot hold true for gold, because it is regarded as a safe haven and not used in industrial applications the way silver is.
Robert Kiyosaki explained why he believes silver is the biggest opportunity he has ever seen, even bigger than real estate because it is God’s money and does not waver to the tides and turns of the economic downturns that affect paper currency.
The main difference between gold and silver is that gold is hoarded and silver is consumed as an industrial precious metal as previously learned. It has value as a metal that is consumed by the entire world in high demand and limited supply. They are not finding much more of it today.
These are some of the top reasons that make silver an attractive investment. Every discerning individual should consider including silver in his portfolio for making gains and protecting the value of his investment.