Are you ready for what’s coming?on September 5, 2011 at 18:06
It is believed that silver investors are going to be experiencing a huge shift in mentality and it could happen at any time. Due to the economic upheaval, it will not only be regular investors investing in order to make a fast buck, many other investors are going to realize that fiat money is in trouble and real money is needed.
People who place their faith in fiat-based currency systems can expect to lose their life savings. The world central banks have done much to affect the performance of currencies such as the U.S. Dollar. Investors will shift towards tangible assets once they come to the realization that politicians are squandering money and the bankers are merely printing more non-redeemable paper notes (fiat currency) in a bid to pretend to correct the situation.
Some quarters believe that there will come a point where silver will be unavailable at any dollar price. This is because there will be a realization that there is immense fraud being committed in the silver industry. When this realization materializes, no sane person will let go of what silver they have in exchange for paper currency. It is at this point that people will not want to engage in debt money, they will only want to trade with real money. It is after all no secret that physical silver, especially in the form of silver coins, is real money.
Investors who have hoarded vast amounts of physical silver will be amazed at the appreciation of their investment. It will be the same as catching the lottery. At the same time the economic reality will be horrific as people run around with worthless paper currency (fiat currency). There will be a shift in wealth that has never been experienced before. All the scorn about buying silver over the years will come to nought as the silver investors will have made their case.
Sadly, as the debt-based economy sinks even further, there will not be much investing going on. People will be hesitant to invest during these times as political and economic uncertainty prevails. This will be a time where patience is required and he who is most patient will win.
At this time, paper investors will be quick to look towards silver as an investment vehicle. This will make a great change in the investing habits of people who have traditionally sold on investing in paper currency (fiat currency). Sadly, it could be too late then as the silver price is sure to rocket to new heights. Investors will begin to panic and this will cause a dash for silver which in turn will only push the price up even further. Debt cannot be dealt with by incurring more debt, printing more fiat money (non-redeemable paper notes) will not make the debt go away. At this point it will not be multi-billion dollar corporations that suffer; it will be nations that are in trillions of dollars in debt. Currently, shocking as it may be, only about one percent of investors invest in silver. It will be interesting to note the change in dynamics when this figure changes to say about twenty percent.