Why Is Silver a Buy?

Here are ten reasons that silver may never be a better buy:

  1. Silver Outperforms Gold in Bull Markets. Silver is a relatively small market. When big money moves in and out, silver prices move further and faster than gold.
  2. Silver is near a Strong Support Level. Silver’s recent drop in value is directly tied to the anticipated recession. As the economy bottoms out and turns, Silver will become quite resilient. Silver’s first to react to a slowing economy and will be first to recover.
  3. Silver is Massively Undervalued. During the 20th Century, the Gold to Silver ratio averaged 47:1. Over the past 20 years, it has averaged about 60:1. But in March of 2020 the ratio has eclipsed 120:1, blowing away the previous record of 90:1.
  4. Silver Inventories are Falling. This is strictly due to lower demand and lower prices. When the market and demand turns, the time it takes to reopen mines and renew production will cause a severe backlog that will result in very rapidly increasing prices.
  5. Like Gold, Silver Bullion is Real Money. It can’t be created and therefore can’t be depreciated like paper or digital forms. It has a 5,000 year history as a universal currency. It’s also very easily spendable for daily needs, particularly in emergency situations.
  6. Silver’s Biggest Uses are Industrial and Jewelry. These are the first industries to suffer in a recession, usually ahead of the curve, but also the first to recover.
  7. Physical Silver is a Hard Asset. Silver has been a physical hard asset throughout history. It serves as a tangible hedge against all forms of cybercrime and hacking.
  8. Mines have been Shutting Down. Lower prices have forced a great number of mines globally to shut down unilaterally. Closing mines is relatively easy, opening is not.
  9. World Demand was Growing and Will Return. The world has a voracious appetite for silver, particularly China and India. As China recovers, so too will their growing demand.
  10. The Gold/Silver Ratio Favors Silver. Following peaks, Silver has historically performed well. Following dramatic peaks, Silver has performed historically well.

The coronavirus caused a premature entry into an unavoidable global recession. World currencies are going to falter and traditional financial instruments are going to falter, but the recovery time for all of those instruments are going to take much longer to recover than previous recessions due to the extended and artificially supported fundamentals utilized to keep the bull market going for as long as it did. When the stock market bottoms out, world famous hedge fund manager Ray Dalio has suggested it could be fifteen to twenty years before many of those instruments regain what will be lost in this recession. The drop will be relatively sudden, but the recovery will not. Today’s lower prices make silver a better buy than possibly any other time in the lifetime of most Americans. The professionals at American Bullion stand ready to help any investor protect their portfolio, family and legacy. Call (800) 653-4653, NOW!

Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.