The Pure Logic of Investing in Silver
Logical Investing With Silver
Both silver and gold are precious metals and investing in these is considered very safe. However, silver seems to be the metal of choice because of the following reasons:1. One of the golden rules of investing in precious metals says, “Buy silver first, then gold.” People do just the opposite. Gold is now at $1,880 per ounce, while silver is at $43 per (August 2011 rates). Gold seems to have reached fair value or peaked, while silver seems to have scope for appreciation because it is used in many other applications.
2. Gold is considered as a safe haven. It is not used much in industrial applications. Silver on the other hand is a versatile precious metal. It is used in electronics, soldering, medical equipment, water purification, and more. Plus, it is used in the regular cutlery and jewelry trade. The consumption of silver is increasing at a rapid pace, but its mining output cannot keep pace with its demand.