There are many experts who believe silver is a superior investment to gold. Silver has some benefits that gold does not have.
Historically during a precious metal bull market silver generally has a greater percentage increase. There have been times when silver has tripled while gold has only doubled. In fact, between January 2010 and December 2010 the price of gold increased approximately 27%, while the price of silver increased more than 80%.
The demand for silver is built on three legs: 1) jewelry and silverware, 2) coins and metals and 3) industrial. By far the largest of these categories is industrial. Silver has far more industrial applications then gold.
This industrial demand pushes up the price of silver. New high-tech uses for silver add to the strain of existing supplies. Then factor in countries like China and India becoming more and more industrialized the demand for silver is great and continues to grow. Many experts are concerned that mine production and secondary recovery methods will not be able to keep up with demand.
Some experts have even predicted that a silver shortage will occur. Even if no shortage occurs it is a good bet that increasing worldwide demand for silver will continue to push the price of silver up. This makes silver an attractive asset.
The other major advantage to silver is price. Many people considering a precious metal purchase cannot afford gold, which right now is well over $1,400 an ounce. On the other hand silver is around $36 an ounce. The price point for a silver coin makes silver affordable for everyone to acquire.
One practical option for the limited investor is to purchase newly minted and graded coins. For example for around a hundred and eight dollars anyone can buy a 2011 certified MS70 U.S. Silver Eagle Dollar. These coins come encapsulated for protection. The fact that the coin is certified as mint state 70 gives it some numismatic value. Keep a coin like this for 10 years and you may see some increase in value, even if the price of silver does not go up.
Like gold, silver has never been worth zero. Also like gold, silver can be a hedge against inflation. I am not touting silver has a great investment or even a safe investment. Nothing is risk free. What I am saying is that the price of silver allows anyone to invest. You can buy 10 certified MS70 American Eagle Dollars for less then an ounce of gold will cost.
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