Why Buy Silver Now? Puzzling Silver vs Gold Report!

by Silver Advocate on September 15, 2011

Why Buy Silver Now? Silver vs Gold is puzzlingly under-exposed in the media. And whilst Gold is doing well silver prices could be set for higher gains

In this report from Mike Getlin at ibtimes.com entitled “The Silver Question” it’s encouraging to see the spotlight on silver. He covers some excellent statistical information about physical and industrial demand as well as the silver’s historical role as money.

So before asking questions like where can I buy silver or how do you buy silver it’s imperative we look at fundamental drivers for the question why buy silver?

From the article here is a brief extract citing one of the many dazzling stats for gold and silver….

“First, let’s look to physical demand and performance, and we’ll start with a little about our own physical silver sales to demonstrate the point. Between the years of 2000-2005, silver accounted for less than 5% of our total sales. It’s not that we didn’t stock it and make it available. There just wasn’t all that much interest. This all started to change in the latter part of the last decade. By 2008, serious concerns about the availability of physical silver began to come to light, and demand increased significantly. That trend is still developing, and we have had several months in the last year where silver sales have actually been higher than gold! Needless to say, demand for physical silver has increased dramatically in the last several years.

It’s pretty easy to see why silver has been so popular for individual investors. First off, gold has tacked on more than 225% in gains since the beginning of 2009. While stock and debt markets have stagnated at best, gold has been soaring and attracting attention from investors of every type. Then there is silver, which has gone up by a staggering 387% over the same timeframe! During the best two and a half years on record for gold, silver has actually outperformed its yellow cousin by nearly double.”

When you read the full article you will see essential industrial demands insights but I wanted to be sure you saw this…

“…. Thus many silver buyers are becoming more interested in silver as a precautionary asset. Don’t forget also that many of the massive naked short positions that held silver prices down over the last decade have come unwound over the last 12 months. All in all, silver has some extremely strong fundamentals for higher prices. Though there may be more swings along the way, the long term picture looks pretty strong…”

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