Is silver’s big breakout right around the corner? Mike Kapsch of Investment U Research thinks so. Both the European Central Bank and the Federal Reserve are fast priming their respective economies with huge amounts of printed money in a desperate attempt to stimulate Europe’s and America’s economies. Silver isn’t just a precious metal that people hoard during tough economic times. Silver is also heavily used in many industries making it an ideal investment. For example, silver is used to produce compact discs, cell phones, cameras, and even televisions. Hospitals also use silver to fight bacterial infections.
Quantitative easing is the buzz word used by the FED and EUD. This policy is not without risk, because the printed money filling the economy is no longer backed by anything other than the paper it is printed in. Inflation is always a possibility when QE is introduced. Kapsch goes on to say that buying silver bullion coins like the American Silver Eagle is the best way to combat the negative economy. Silver prices are set to start rising for years to come, and silver bullion is the best way to get on the band wagon.
According to Natural News the national debt is spiraling out of control and we should be very worried about it. The US Treasury Department presses are printing money at a frenzied rate, which is weakening our spending power. On the other hand, this is causing both gold and silver to rise. Gold trades at over $1700 per ounce and is too costly an investment for some. However, silver only trades at $34 per ounce and many of gold’s hedge qualities are present in silver. You can check spot prices daily to track your investments.
Silver and gold have been used as a safe haven since ancient times. Using these precious metals as a hedge still works today. As the FED pumps more dollars into the economy the value of the dollar will decline further. This means we will need more dollars to buy the same amount of products and services we buy today. There is a real risk of dangerous inflation entering the economy due to this policy. Yet, gold and silver will respond by going up in value.
If you are considering venturing into silver it is best not to wait too long, because if predictions are correct silver will become much more expensive soon. Buying the commodity when the price is low just makes sound financial sense. How high will silver go? Some are predicting that silver could reach $50 per ounce in 2013. While nobody can accurately predict what exactly will occur, it is a safe bet that silver will likely be much higher than it is today.
To conclude, some financial experts think silver is poised to spike up in value. This is in large part due to the FED’s monetary easing policy of pumping the economy with large amounts of fiat dollars. This action is weakening the dollar. When this occurs silver and gold typically react by going up in value.