Why is silver the new hot commodity to invest in?
Silver is often times seen as "poor man's" gold. Despite this title, one should not overlook the advantages of owning this asset considering it is outperforming nearly all other investments currently available.
Since 2010, silver is up a record breaking 80% and is continuing to climb. This is no surprise considering the immense value this asset possesses.
If you are an investor looking for a great place to put your money, junk silver bags might be the wisest investment at this time. Even though the coins in these bags are nothing to look at because of the wear and tear they have suffered while in circulation. That does not take away from the fact that you're going to be getting the most silver content for the cheapest price.
There are two versions of the junk silver bag, the 90% silver content bag and the 40% silver content bag. 90% purity bags contain dimes, quarters, and half-dollars of pre-1965 circulated coins with 90% silver purity per coin. Bags comprised of coins with 40% silver content have post-1964 Eisenhower dollars and Kennedy half dollar coins.
So, what other factors are driving demand for junk silver bags aside from their intrinsic value?
Demand for silver in the form of jewelry along with its wide range of industrial uses is one of the reasons why silver prices continue to climb. Add the fact that demand continues to outstrip supply and there is only one way silver prices should go, up.
Another reason is that silver has consistently outperformed gold over the last couple of months. This is best represented by the gold to silver ratio, an indicator used to compare the two precious metals against each other.
Finally, at face value alone, silver is much cheaper than gold. It's a great way to get into physical precious metals at an affordable price. So, perhaps it is "poor man's gold" after all, but who says that's such a bad thing. Based on all of the information at hand, and silver's consistent performance in the marketplace, one can also contend that it's "smart man's gold".
There is currently a debate about whether or not silver is a better investment than gold or vice versa. However, one thing is for certain, that precious metals are a smart investment in our current economic environment and should at the very least be a part of every investors portfolio.
Article Source: FxTradingStock.com
About the Author
If you are interested in obtaining junk silver bags or gold coins, simply visit Precious Metals Brokerage Group (PMBG) and one of our account executives will assist you.
by: Mindy Stephan
Total views: 23
Word Count: 408
Date: Sat, 18 Dec 2010
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