While the government tells us the economy is improving, the data is mixed. One month new unemployment claims decline, then the next month they go up. Full-time jobs are scarce and pay raises for those who are unemployed seem to be a thing of the past. In other words, the economy is still not good. Many have decided to invest in the current high flying stock market. Indeed, the stock market has been setting all kinds of records, and even on its down days is at a historic high level. However, what goes up must come down and stocks will eventually tank. You really must protect your paper assets by investing in gold and silver.
Market Watch says that silver is becoming a more popular investment, especially in China. The Chinese are buying more silver because gold topped out last year, and physical silver is now available at only $24 an ounce. Furthermore, silver is undervalued when compared to gold and supplies are fast shrinking. The US Mint even ran out of American Silver Eagle coins in early 2013. Silver’s current discount price is your gain, because both gold and silver are expected to rebound during the second half of 2013.
According to Thomson Reuters GFMS the retail demand for silver in China is expected to be robust in foreseeable future. If it is good for China, then US investors should hop on the silver band wagon too. It would seem the increased demand for Silver Eagles and even silver ETFs indicates investors are looking for ways to protect their paper assets. As mentioned, stocks are high but the reason is uncertain. Stocks will sink, because the market always does. When this eventuality occurs expect silver and gold too to go up.
Not only does tangible silver protect your assets from the ravages of inflation and a down economy, but precious metals add diversity to investment portfolios. This means if one component of your portfolio falters, another element picks up the slack. Silver and gold have always provided a hedge to investors, and investing in these two metals is a prudent move. Diversity and balance is what you must have if you expect to be successful when it comes to investing.
Zerohedge.com states that the silver market has become an exercise in contradiction. Silver’s spot price has certainly disappointed thus far in 2013. As a result one would expect silver ETFs to experience overflows. This has not occurred. The low silver spot price has caused the US Mint to sell record amounts of Silver Eagles and may sell 52.8 million ounces of silver in this year. To put it differently, silver is the best discount investment going and will protect your stocks and bonds when they come tumbling down.
Finally, silver currently trades just below $24 an ounce. Stocks are currently riding high, but expect this bubble to burst this year. As a result, gold and silver will do what they always do, rebound and protect your paper assets. If you have been ignoring physical silver, perhaps you should take a second look.
