Five Reasons to Buy Silver Now

Five Reasons to Buy Silver Now from Schiff Gold

Silver is generally treated like gold’s little brother, and tends to get lost in the shuffle. But a recent Business Insider article listed five good reasons to buy silver.

Like gold, silver is money. It’s historically been a good safe-haven investment and a hedge against inflation. But it also serves as an industrial metal. Silver is used in energy production, computers and electronics, and the biomedical industry.

As Peter Schiff pointed out in a video last month, silver is extremely undervalued right now. The current silver to gold ratio stands at 75:1. This means you can buy almost 80 ounces of silver with one ounce of gold. Consider that the historic average ratio is around 16:1.

So, the fact that you can buy 80 ounces of silver for one ounce of gold is an incredible buying opportunity. This is silver on sale. It’s one of the greatest silver sales of all time, relative to the price of gold. This is an incredible buying opportunity.”

Business Insider offers five additional reasons that silver prices will likely surge in the future.

The Stock Market Bubble Is Going to Burst

We recently reported that bankers around the world have started to express concern about the rapidly inflating stock market bubble, and its future impact on the world economy. Business Insider points out that a lot of the rise in stock prices have no grounding economic reality. Take Netflix for example. It expects a negative free cash flow of $2 billion this year and will add another $800 million to the more than $2.2 billion in debt it already has.

It’s no secret in investment circles that Netflix doesn’t really make money, a negligible fact that hasn’t kept the stock from skyrocketing.”

Social media giants such as Twitter and Snapchat are also giant money pits.

Of  course, there is no way that this can go on. And as stocks are being caught out in the rain, gold and silver will get their day in the sun, as has historically been the case.”

China Solar Boom

Silver serves as an integral role in solar panel production, and solar energy demand in China is surging. In its 13th Five-Year Plan, Beijing aims to triple its solar capacity by 2020. Last year ranked as the strongest on record for solar-related silver demand.

This comes at a time of tightening supply. Total silver mined in 2016 fell by 0.6% to 885.8 million ounces. Silver scrap supply fell to 139.7 million ounces in 2016, despite higher silver prices. It was the first decline in overall silver production since 2002.

Winds of War

The US and North Korea continue to saber rattle, the Middle East as always remains a powder keg, and it appears Pres. Trump plans to ratchet up US forces in Afghanistan. On top of that, US relations with Russia have sunk to lows not seen since the Cold War.

Historically, silver prices rise in times of war. Governments must borrow and print money to finance their military actions. This tends to lead to price inflation. Silver prices, along with most other commodities, rise due to currency devaluation. Silver is also used in war material production.

It doesn’t have to come to war, though, for precious metals prices to rise. The threats and growing tensions are enough to drive more investors to the safety of gold and silver—yet another reason to get some bullion now.”

European Banks Are Still a Mess

Last month, the Telegraph reported that “Italy’s long-simmering banking crisis has erupted again. The  emergency plan to wind down two Venetian lenders at a cost of up to  €17 billion is a fiasco of the first order.” Analysts say this could push Italian debt to 133% of GDP.

According to a Reuters article the problem isn’t just limited to Italy. Analysts say, “the total stock of non-performing loans (NPL) in the EU is estimated  at over €1 trillion, or 5.4% of total loans, a ratio three times higher  than in other major regions of the world.”

Clearly, this is a level that is unsustainable in the long run. And if you don’t believe that Italy’s problems could have a major impact on US investors,  remember how the US subprime mortgage crash and subsequent financial crisis affected the entire world. In today’s interconnected global  economy, any severe financial crisis in one part of the world can cause tidal waves in another. And when that happens, gold and silver are the ultimate safe-haven assets.”

States Embracing Sound Money

As we’ve reported, states are passing measures that chip away at the Federal Reserve’s monopoly on money by facilitating and encouraging the use of gold and silver.

Several states, including North Carolina, Arizona and Louisiana passed bills this year repealing taxes on the sale of gold and silver bullion. While repealing state sales taxes on precious metals may seem like a relatively small step, it removes one barrier to owning gold and silver and eliminates a penalty on the use of sound money.

If this movement continues to grow, it will certainly help stimulate demand for silver. The white metal is ideal for conducting business. Because of its lower value-to-weight than gold, silver is ideal for small, in-person transactions, like grocery shopping.

Time to Buy Silver

These five factors take together, coupled with the fact that its extremely undervalued, make a compelling case that now is the time to buy silver. On top of that, the fundamentals also point to a bullish future for the white metal.


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Peter Schiff

Mr. Schiff began his investment career as a financial consultant with Shearson Lehman Brothers, after having earned a degree in finance and accounting from U.C. Berkeley in 1987. A financial professional for more than twenty years, he joined Euro Pacific in 1996 and served as its President until December 2010, when he became CEO. An expert on money, economic theory, and international investing, he is a highly sought after speaker at conferences and symposia around the world. He served as an economic advisor to the 2008 Ron Paul presidential campaign and ran unsuccessfully for the U.S. Senate in Connecticut in 2010.