Silver Bullion is of the opinion that an investment in physical silver, especially over the long-term, offers a low risk investment despite volatility in the silver price (spot price of silver). Needless to say, if you’re going to concentrate on movements in the silver price, which can be pretty volatile at times, then chances are great that you’re going to be seriously sceptical about us writing that physical silver offers a low risk investment. In fact, we shall forgive you for thinking that we’re as mad as snakes. This is why it’s necessary to dig a little bit deeper… 

The moment one digs deeper, it becomes clear that silver market manipulation is having a huge impact on the silver price (at least at the time this was written). In fact, it has been proven that silver market manipulation totally distorts the silver price. This can give potential silver investors the idea that silver is first of all, not that valuable, and secondly, that an investment in silver is risky. Nothing can however be further from the truth. Silver is very valuable, especially if one considers that silver is in short supply (demand outstrips supply), silver is money and that silver is used in many applications (industrial and otherwise). This is not reflecting in the current silver price of around $18 per fine ounce (at the time this was written). In fact, the dumping of paper silver unto the market cannot add a single troy ounce of physical silver to the market. If you understand this, then it should be clear to you why we are of the opinion that an investment in physical silver not only offers a low risk investment, but the opportunity of a life time to buy or acquire physical silver at ridiculous low price levels (around $18 per fine ounce of silver at the time this was written).

Silver Bullion doesn’t recommend that investors invest in paper silver (silver exchange-traded funds, silver shares, silver certificates, silver accounts, silver derivatives, silver spread betting, etc.). Yes, paper profits can quickly be made (and lost!) by means of paper silver, but it simply doesn’t offer the same qualities as physical silver. E.g. the day the derivatives bubble pops, it will surely destroy not only the U.S. economy, but the entire world financial system. On that day paper silver and non-redeemable paper notes (fiat money) will become utterly worthless. In fact, on that day the majority of people will realise that silver and gold have intrinsic value and can be used as money (or a medium of exchange). Needless to say, you want to sit with as much physical silver as possible when that day arrives. It’s not a question of “if” it will arrive, but rather when “it” will arrive. Warren Buffet referred to derivatives the other day as “financial weapons of mass destruction” (Buffett warns on investment ‘time bomb’, BBC News, 4th March 2003). If that doesn’t get the alarm bells ringing, what will it take to convince people that we’re sitting on a ‘time bomb’ and that they need to be prepared? And what best way to prepare than to get your hands on some silver?

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