Why now is a good time to buy silver!
Well, I've gone through what and how to buy silver. Maximizing profit. Using silver to pay off debt. And many other things. But there is one area that I haven't really talked about. "WHY buy silver and WHY NOW"?
Lets get all the paranoia, conspiracy theories, and everything else out of the way real quick.
1. If the Mayans are correct in 10 more days, NONE of this will matter.
2. If there's a total collapse of the dollar, something will be done to stabilize the U.S. economy. Might be total socialism or communism, but we aren't all going to be out on the street homeless, hungry, warring, etc... The truth is, the U.S.A. is the largest importer/consumer. We spend ey the most money. If our economy was to totally shut down, it would affect the rest of the world. Every country in the world relies on us to either sell to them or to buy from them.
3. If there's a total collapse of the dollar, something WILL replace it. People aren't going to simply stop working because they aren't being paid. The country might be nationalized to ensure energy production is still accomplished; people will still need food, clothing, services, etc... In other words, people will still be working. Some form of compensation will be implemented to pay people for their labor.
4. The U.S. Dollar is still currently the world reserve. If the dollar crashes, something will have to take it's place. And that could stimulate a lot of possibilities like a "World Currency" or similar; but something will be done.
The "Doom and Gloomers" who think in a total dollar collapse that the entire country is going to shut down, everyone on their own, rioting in the streets, etc... do not understand economics. Economics has nothing to do with actual dollars or currency. It can go all the way back to the time of all bartering. We will have the big farming corporations, manufacturers, etc... finding ways to sell us what we need. The farms aren't going to just let food rot. They lose their wealth if that happens. And they can't sell for more than people can afford or they wind up not selling and again lose their wealth. In other words, the economy will survive. Maybe not the way we are accustomed to, but it will continue on.
So, why buy silver and why now? Let me first state the 2nd part first. Why Now? Real simple. When you look at the highs and lows of silver, we are right in the middle. Silver and gold have always had value, so you can't look at an average starting with $0.00. The realistic pricing for silver was between $10 - $50. But you must realize that when it was in the $10 range or less, the economy wasn't nearly as much in debt. Plus, if you look at the value of the dollar, at the time, $10 an ounce is equal to about $30 an ounce now.
This is where people really lose it and misunderstand buying silver and gold. The "VALUE" of silver and gold DO NOT GO UP AND DOWN!!!!! What goes up and down is the VALUE OF THE DOLLAR!!!! What you could buy with an ounce of gold 70 years ago, you pretty much can buy today with an ounce of gold. The one caveat however is that today, the value of silver and gold is worth a bit more for 2 reasons. 1) We are no longer on a currency that is backed by silver and gold; and 2) There are many more modern day uses for silver and gold today and therefor it is now also treated as a "Commodity", while in the past it was mainly "Money". (With some jewelry). Industrial uses for silver alone give a potential for rise.
Now that you know that it isn't really silver and gold changing value, but the dollar, we need to simply answer; "Why buy silver and WHY NOW". Simple answer. At the current price, and because of the inflationary nature of our current economy, and the deflationary value of the dollar, the logical progress of silver is to go up in value. In other words, people are not going to be so eager to store their "Wealth" in cash, so they will want something more secure. That's silver and gold. Basically, the stronger the dollar becomes, the weaker silver and gold are. The weaker the dollar, the stronger silver and gold. Currently, the only things keeping silver from going through the roof is; while the dollar is definitely weak, the euro and yen are WEAKER. So the dollar is still the "Best of the Crap". But the federal reserve is also printing money like crazy. So, even if the dollar got stronger, it's being negated by the deflationary value of over printing. And if europe gets their act together and stabilize greece, spain, italy, etc... that will make the euro much stronger and really hit the dollar. The price of silver WILL go up significantly. Maybe in a couple months, maybe in a year. But the price is going to be in the $50-$60 range as a minimum. It has the potential, when you include it's uses such as industrial, to go near $100 an ounce.
The only other question is "Why Silver". Well, you could buy gold, platinum, etc... but silver has the greatest potential for value increase. It has the greatest industrial uses. The majority of the silver used in industrial uses can not be reclaimed, so once used, it's lost forever. In other words, it's a much more limited resource. It's also cheaper by the ounce to purchase. And, if the doom and gloomers are right, then if you need silver or gold to barter with, it's easier to buy a loaf of break with a $0.10 dime; worth currently $2.50 than it is to have a 1/10th ounce of gold; worth $170.00 and ask for CHANGE!!!
Anyway; this is why silver is a great investment, and now is the time to do it. But remember, you need time on your side. If you have to borrow money to buy silver; or take from your retirement accounts; then you should not be buying silver. You should be paying off ALL OF YOUR DEBT. And those that say they are taking on MORE DEBT and leveraging it because it's cheap debt, are IDIOTS!!! Don't listen to them. There was a time when you wouldn't pay off a home loan or other debt, because you could put your money in a savings account, CD, savings bond, etc... and make more on interest than you were paying on the loan. That is no longer true. The average low rate home loans are 3-4%. Average car loans are in the 5-6% range. You can take a chance and RISK money trying to make more than you're paying, but it's definitely a risk. Paying off your car, mortgage, and other debt is a GUARANTEED RETURN ON YOUR MONEY!!! If you have extra money, pay off your credit cards, then cars, then your house. Obviously, you need emergency money and such, as well as spending money for relaxation and other uses. If you want to buy $100 worth of silver here and there, that's cool. But before truly investing in silver, you're better off paying off your debt. What are you going to do if there's hyperinflation and bread costs $5.00 a load and milk is $10.00 a gallon, and you are still making the same paycheck??? Pretty soon you can't pay your mortgage and they foreclose. Or they take your car. If you pay off your debt, you are automatically getting an extra $500, $1000, $1500, or $2000 a month PAY RAISE because of no more mortgage, credit card, and/or car payment!!! That raise may be what's needed to get you through hyperinflation. It's not the equity in the home that you want or need. It's the $1000-$2000 a month payment that you DON'T HAVE any longer. Now; if you can find a guaranteed investment like a savings account, CD, savings bond, money market, etc... that pays more than 3,4,5,or 6% then disregard. But if not, then give yourself the interest rate by paying off your loans.
I'll chat again soon. CYA: SE
Well, I've gone through what and how to buy silver. Maximizing profit. Using silver to pay off debt. And many other things. But there is one area that I haven't really talked about. "WHY buy silver and WHY NOW"?
Lets get all the paranoia, conspiracy theories, and everything else out of the way real quick.
1. If the Mayans are correct in 10 more days, NONE of this will matter.
2. If there's a total collapse of the dollar, something will be done to stabilize the U.S. economy. Might be total socialism or communism, but we aren't all going to be out on the street homeless, hungry, warring, etc... The truth is, the U.S.A. is the largest importer/consumer. We spend ey the most money. If our economy was to totally shut down, it would affect the rest of the world. Every country in the world relies on us to either sell to them or to buy from them.
3. If there's a total collapse of the dollar, something WILL replace it. People aren't going to simply stop working because they aren't being paid. The country might be nationalized to ensure energy production is still accomplished; people will still need food, clothing, services, etc... In other words, people will still be working. Some form of compensation will be implemented to pay people for their labor.
4. The U.S. Dollar is still currently the world reserve. If the dollar crashes, something will have to take it's place. And that could stimulate a lot of possibilities like a "World Currency" or similar; but something will be done.
The "Doom and Gloomers" who think in a total dollar collapse that the entire country is going to shut down, everyone on their own, rioting in the streets, etc... do not understand economics. Economics has nothing to do with actual dollars or currency. It can go all the way back to the time of all bartering. We will have the big farming corporations, manufacturers, etc... finding ways to sell us what we need. The farms aren't going to just let food rot. They lose their wealth if that happens. And they can't sell for more than people can afford or they wind up not selling and again lose their wealth. In other words, the economy will survive. Maybe not the way we are accustomed to, but it will continue on.
So, why buy silver and why now? Let me first state the 2nd part first. Why Now? Real simple. When you look at the highs and lows of silver, we are right in the middle. Silver and gold have always had value, so you can't look at an average starting with $0.00. The realistic pricing for silver was between $10 - $50. But you must realize that when it was in the $10 range or less, the economy wasn't nearly as much in debt. Plus, if you look at the value of the dollar, at the time, $10 an ounce is equal to about $30 an ounce now.
This is where people really lose it and misunderstand buying silver and gold. The "VALUE" of silver and gold DO NOT GO UP AND DOWN!!!!! What goes up and down is the VALUE OF THE DOLLAR!!!! What you could buy with an ounce of gold 70 years ago, you pretty much can buy today with an ounce of gold. The one caveat however is that today, the value of silver and gold is worth a bit more for 2 reasons. 1) We are no longer on a currency that is backed by silver and gold; and 2) There are many more modern day uses for silver and gold today and therefor it is now also treated as a "Commodity", while in the past it was mainly "Money". (With some jewelry). Industrial uses for silver alone give a potential for rise.
Now that you know that it isn't really silver and gold changing value, but the dollar, we need to simply answer; "Why buy silver and WHY NOW". Simple answer. At the current price, and because of the inflationary nature of our current economy, and the deflationary value of the dollar, the logical progress of silver is to go up in value. In other words, people are not going to be so eager to store their "Wealth" in cash, so they will want something more secure. That's silver and gold. Basically, the stronger the dollar becomes, the weaker silver and gold are. The weaker the dollar, the stronger silver and gold. Currently, the only things keeping silver from going through the roof is; while the dollar is definitely weak, the euro and yen are WEAKER. So the dollar is still the "Best of the Crap". But the federal reserve is also printing money like crazy. So, even if the dollar got stronger, it's being negated by the deflationary value of over printing. And if europe gets their act together and stabilize greece, spain, italy, etc... that will make the euro much stronger and really hit the dollar. The price of silver WILL go up significantly. Maybe in a couple months, maybe in a year. But the price is going to be in the $50-$60 range as a minimum. It has the potential, when you include it's uses such as industrial, to go near $100 an ounce.
The only other question is "Why Silver". Well, you could buy gold, platinum, etc... but silver has the greatest potential for value increase. It has the greatest industrial uses. The majority of the silver used in industrial uses can not be reclaimed, so once used, it's lost forever. In other words, it's a much more limited resource. It's also cheaper by the ounce to purchase. And, if the doom and gloomers are right, then if you need silver or gold to barter with, it's easier to buy a loaf of break with a $0.10 dime; worth currently $2.50 than it is to have a 1/10th ounce of gold; worth $170.00 and ask for CHANGE!!!
Anyway; this is why silver is a great investment, and now is the time to do it. But remember, you need time on your side. If you have to borrow money to buy silver; or take from your retirement accounts; then you should not be buying silver. You should be paying off ALL OF YOUR DEBT. And those that say they are taking on MORE DEBT and leveraging it because it's cheap debt, are IDIOTS!!! Don't listen to them. There was a time when you wouldn't pay off a home loan or other debt, because you could put your money in a savings account, CD, savings bond, etc... and make more on interest than you were paying on the loan. That is no longer true. The average low rate home loans are 3-4%. Average car loans are in the 5-6% range. You can take a chance and RISK money trying to make more than you're paying, but it's definitely a risk. Paying off your car, mortgage, and other debt is a GUARANTEED RETURN ON YOUR MONEY!!! If you have extra money, pay off your credit cards, then cars, then your house. Obviously, you need emergency money and such, as well as spending money for relaxation and other uses. If you want to buy $100 worth of silver here and there, that's cool. But before truly investing in silver, you're better off paying off your debt. What are you going to do if there's hyperinflation and bread costs $5.00 a load and milk is $10.00 a gallon, and you are still making the same paycheck??? Pretty soon you can't pay your mortgage and they foreclose. Or they take your car. If you pay off your debt, you are automatically getting an extra $500, $1000, $1500, or $2000 a month PAY RAISE because of no more mortgage, credit card, and/or car payment!!! That raise may be what's needed to get you through hyperinflation. It's not the equity in the home that you want or need. It's the $1000-$2000 a month payment that you DON'T HAVE any longer. Now; if you can find a guaranteed investment like a savings account, CD, savings bond, money market, etc... that pays more than 3,4,5,or 6% then disregard. But if not, then give yourself the interest rate by paying off your loans.
I'll chat again soon. CYA: SE
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