5 Reasons Silver is a good investment

Reason # 1 - the application of the money is on the rise

In the first two months of 2011, the US currency sold as much $ as did gold dollars. Only Chinese demand is 20%. Now, they are importing 112 million ounces. That should tell you how valuable money is.

Reason # 2: demand for Silver is in the sector of technology

Industrial production of money increased by 18% in 2010. It was the demand to increase money in the technology sector. More we see that the money used in computers, cell phones and other electronic devices. The health sector is also beginning to use the money more antibiotic properties. It is already used in clothing and several medical devices.

Reason # 3 - there is a shortage of money

A shortage occurs when there is more demand there is supply. Although there are millions of ounces of silver in the ground, it is not enough available on the market. The fact that it takes two weeks for the silver medal for hit shows that is not enough available inventory.

Reason # 4 - too much money on the world market paper

The US Federal Reserve and central banks around the world are still dealing with the high debt. They try to solve the problem by pumping more paper currency in the global market. Thus, the value of paper currency will continue to decline and the value of gold and other hard assets will continue to rise. Given that the Federal Reserve was created more than 100 years ago, the dollar has been on a steady decline. It has lost more than 90% of its value, and will continue to lose its value over time. Thus, the value of money will rise.

Reason # 5 - we are in a financial crisis

Inflation is often regarded as the main reason for hard assets such as place of gold and silver in value. However, this is not always the case. Take for example the 1990s, while inflation was between 1% and 6% per year. During this time, the price of silver and gold is a not move much. Why? Because no there was no demand. And no there was no application because that during this time the United States is experiencing a boom.

But currently, the US economy is not growing. In 2008 where everything seemed to collapse around us, made investors there was a serious problem and has chosen to invest in safer assets such as silver and gold. So that more and more people begin to realize that the Government cannot manage the current crisis, the price of silver will be arrow.

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