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Top 12 Reasons For Buying Silver Bullion – part 2

Here is the second part in a two part article on the reasons for buying silver bullion.

We continue with our list of the top 12 reasons for buying silver bullion today.

Here are the final 6 reasons.

7. Industrial metal

Silver is an industrial metal which ensures an additional demand component to gold. Silver has hundreds of industrial and medical applications – as the best conductor of electricity it’s used in switches, medicine, batteries, plastics solar cells, water purification, computers, cars etc. There is furthermore a continuous growth in the applications for silver.

8. Silver is cheaper than gold – the “common man’s” gold

Silver is cheaper than gold and is often referred to as the common man’s gold. Even if the price of gold recently has fallen just below $1400, it’s still considered as being too expensive for many. Silver on the other hand currently has a price in the $22.30’s area, which makes it much more affordable.

9. Silver is still not well known as an investment

Silver, similar to gold, is still not a mainstream investment. For most people, owning silver in paper form is uncommon, not to mentioned actually buying physical silver bullion. Securities such as bonds and stocks are the dominating asset classes for the majority of investors. When it comes to physical gold and silver we are instead flooded with advertisements to sell them at cheap prices. Once this trend is reversed it will add a strong catalyst for rising silver prices.

10. Silver has more price potential than gold

Silver prices are more volatile than gold prices in general, which can work to both your advantage and disadvantage in the short term. The silver price has increased with approximately 19% per annum since 2002 – gold by 15% per annum. If you buy silver bullion today, with the drivers for all precious metals being so strong, silver can offer you a very attractive potential, and “pick-up” to gold, over the coming years.

11. Silver is undervalued compared to gold

One ounce of gold currently buys 61 ounces of silver. Over the years this ratio has varied a lot. Since 1687 it’s been between 14.4 and 99.76. During this period the average gold to silver ratio was 27.28. In 2011, when silver peaked just below 50 the ratio was at its lowest since 1983, at a level of 32. This means that silver in relation to gold was at its priciest point for 30 years.

Since the beginning of the 1990s silver has been on a rise versus gold, thereby decreasing the ratio, so the overall trend is that silver is appreciating versus gold. If silver was to return to it’s historical average, with a ratio of between 17:1 and 27.28:1, the silver price would be between $50-$81 (given a gold price per ounce of $1379). That leaves room for a significant price increase from the current level.

12. Significant risk in silver paper market

The explosion of silver (and gold) ETF’s over the recent years have made precious metals much more accessible for investors. The characteristics of these instruments should not be confused with the characteristics that define physical silver bullion though. The “paper instruments” have an inherent risk as they rarely have actual ownership of all the metals in their exposure. They don’t provide full allocation and would thus, in a real time of crisis, not provide the same level of security and insurance as physical bullion would. “Paper silver” is more suited for speculation. Buying silver bullion on the other hand provides one of the best crisis hedges that one can own.

If you are looking at buying silver bullion then choosing a location where silver bullion can be purchased free of VAT will ensure that you get the cheapest silver bullion. Two premier locations and distributors are outlined below.


Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review



Top 12 Reasons For Buying Silver Bullion – part 1

Here is the first part in a two part article on the reasons for buying silver bullion.

Buying gold bullion is usually the first step for many people when they venture outside of the “paper” market, or the exchange traded market, for precious metals. There are, however, very compelling reasons for buying silver bullion apart from gold bullion. Silver offers the same characteristics as gold but there are additional drivers for silver, which makes it especially interesting to buy and hold today.

In the coming two blog posts we’ll take a look at the top 12 reasons for buying silver bullion. Here are the first 6.

1. Real money and store of wealth

Silver has been used as money throughout history. Even though other assets have been used for shorter periods silver, together with gold, have stood the test of time and proven to be the best forms of money. Silver protects wealth and purchasing power over the long run.

2. Crisis hedge and insurance policy

Silver offers a way for you to insulate yourself against the recklessness of central bankers, politicians and unknown future events. As the saying goes, history may not repeat itself but it sure rhymes.  Calm periods in history have often been followed by turmoil. You should view your silver bullion holdings as an insurance policy. Even though some events may be improbable you will benefit greatly, not only in terms of wealth protection but also wealth accumulation, if a crisis such as, or worse, than the 2008 financial crisis should hit.

3. Debt and deficits

We are in the later stages of a 40+ year debt era where we’ve been able to spend, what’s felt like, freely through the accumulation of both private and national debt. Most western and developed countries now have debt-to-GDP ratios that by far exceed levels that ever have been repaid historically. The U.S. has for example in a relatively short period of time gone from a net lender to the largest debtor in the history of the world. The only way out of this will be through debt monetization which causes inflation – which in turn translating into invisible wealth destruction for most individuals. Silver will holds its value better than any fiat currency.

4. Money printing – fiscal stimulus

The central banks of the world are on a printing spree of historic proportions. In the U.S. QE3, which follows over $2 trillion of previous stimulus programs, adds another $85 billion per month in stimulus efforts, through bond purchases. Japan has recently launched an unprecedented $1.4 trillion 2-year stimulus package and very recently the Bank of Japan affirmed their plan to double the monetary base. The U.S. and Japan aren’t the only ones. They’re happily joined by the ECB in Europe, China, South Korea and a host of other countries. So how is this positive for silver bullion? As fiat currencies become increasingly “diluted” and debased silver, which can’t be manufactured out of thin air, will rise in value.

5. Growing demand for silver

There is an increasing demand for silver from many countries, typically those that have a strong cultural relation to precious metals, like India, or in countries where ownership of silver is actively encouraged, like in China. As the demand for silver becomes more mainstream, supply will quickly dwindle.

6. Limited current supply and uncertain future supply

There is a limited amount of new silver produced, which is evident in the current market conditions where supplies of silver bullion often are sold out. In addition, over 50% of annual silver production is used for industrial purposes and an increasing amount of the total above ground supply is diminishing as applications in a broad range of fields continue to grow.

The future supply of silver is uncertain as mining often is done in politically and environmentally fragile locations with less developed infrastructure.

To buy the cheapest silver bullion you should look at the two bullion dealers linked to below.


Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review


Why Buy Gold and Silver Bullion Today

There is a wide range of factors that contribute to the rise in interest for precious metals. Find out why buy gold and silver bullion today.

Below are six of the key reasons (not in any particular order):

1. Negative real interest rates


Interest rates in the developed world are close to zero with inflation rates running increasingly higher. This means that you virtually aren’t sacrificing any yield by owning precious metals. The opportunity cost is highly favorable. As there, usually, is a storage cost associated with gold and silver the general viewpoint is the higher the yield on government “risk-free” securities the less attractive metals will become. Precious metals don’t pay a yield, which is why people tend to want to buy and own them when they are facing negative or low real interest rates.

With U.S. rates poised to stay low to AT LEAST 2015 the chances of interest rates rising is slim.

2. The ownership of precious metals is low


Institutional ownership as a percentage of global financial assets is low. Many pension funds have only a very limited exposure to gold.


For individuals the situation is similar. In most of Europe and the U.S. you are swamped with advertising for “cash for gold”. People are encouraged to sell their gold at low prices. There is very little information about actually owning precious metals. Tell your friends that you think about buying a silver bar and they will look at you strangely.

3. The monetization of debt 


This is what many like to call the collapse of the fiat monetary system.

Many western and developed nation’s currencies will eventually not be worth the paper they are printed on due to the explosion of money printing. As currencies become increasingly worthless people will turn to precious metals as a means of wealth protection. Just like it has been throughout history gold is still money. Probably the only “currency” where you have no counterparty risk. Why will the fiat monetary system collapse? Well, at the rate the Fed, BOJ, ECB etc are printing money there really is only one direction we are heading in.


For the U.S. specifically it will lead to the demise of the dollar as the worlds reserve currency. It is beyond the scope of this ebook to fully discuss this but suffice to say is that some international transactions already are settled in other currencies than the dollar. Also, some central banks in the world such as China and Russia are already discussing the possibility of replacing the dollar with a basket of currencies. We will probably also see some currencies being backed by gold in the future.

4. Central bank buying 


After decades of selling gold central banks around the world are now net buyers again. Some, like China and Russia are aggressively buying gold.

5. Promotion of gold ownership 

Even though this might seem to contradict point 2 above, many countries around the world such as China actively promote private ownership of gold. I suspect we will see an awakening in western countries within the near future. Unlike Europe and the U.S., Asian and Middle Eastern economics have gone through wars, booms and busts more recently than us, and their populations are more educated about how to preserve wealth in a time of crisis. There is also a cultural relation to gold in many countries such as for example India.

6. There is a limited amount of precious metals 


Just as the headline says, there is a limited amount of gold and silver produced every year so precious metals are scarce. All of the gold ever produced in the world would according to some calculations fit into three Olympic size swimming pools. Platinum is even more scarce than gold.Finally, precious metals are the ultimate insurance policy against inflation. As more and more citizens realize the irresponsible and reckless way U.S. and European governments are handling monetary and fiscal policies, they will increasingly turn to precious metals. This will make it more difficult to buy these assets going forward.

During periods of turmoil increased transaction costs is exactly what happens. We saw evidence of this during the financial crisis 2007-2008. At that time, gold buyers were forced to pay between a 9%-15% premium over the spot price to buy coins. And coins were hard to come by.

Shipping delays of 30-60 days were the norm and lags of up to four months were not uncommon. There were days when suppliers simply advised dealers not to sell, because no one could promise when, or even if, orders would be filled.

With all of this in mind it becomes clear that owning and having exposure to precious metals makes sense. It also makes sense to build a position gradually, at a time when you really don’t NEED to do it because it will be much more difficult when everyone else wants to build positions. To finding the cheapest silver bullion have a look at the suggestions blow.


Please click below to access the best bullion distributors

BullionStar.com Singapore – cheapest bullion

BullionStar.com Singapore

Singapore cheapest bullion: https://www.bullionstar.com/ and BullionStar review

Liberty Silver Estonia – cheapest bullion

Liberty Silver Estonia

Estonia cheapest bullion: https://www.libertysilver.ee/en/ and Liberty Silver Estonia review