Silver is a commodity whose attributes make it sought after for industrial uses and also as hard money and an inflation hedge. What is remarkable about silver is that at this point in history it will do well both in good economic times and bad ones. Should the world economy recover and move out of recession there will be enormous industrial demand for silver because of the growing applications it has for electronics, alternative energy, and medical uses.
If the world economy continues to deteriorate and inflation continues to be a serious problem, silver will be in high demand by people wanting to protect themselves from losing purchasing power. Dollar devaluation in particular is already driving record sales of American Silver Eagles and other silver dollars in the United States. It is has been said by Congressman Ron Paul and experts in the precious metals markets that as gold continues to go higher a point will come when most people will not be able to afford it and they will instead move to silver. This will put massive upward price pressure on silver as demand outstrips supply.
Added to these promising market fundamentals is the fact that silver inventories have been getting smaller over the years, especially compared to gold. In the 1960’s there was a ten year stockpile of silver. Currently there is only a three month supply of silver above ground. There is actually less silver above ground today than there is gold.
Many commentators continue to claim that gold and silver are in a bubble. But the facts directly contradict that claim. Only a very small percentage of the population is even aware of the facts about silver. Still less people with that knowledge have taken action by investing in silver. You can’t have a bubble without widespread ownership. Until that happens the future of silver investment will be very bright indeed.