Silver As A Safe Haven

Gold is the traditional safe haven investors seek out during times of economic upheaval. However the current spot price of gold is over $1600 an ounce and is out of the reach of some smaller investors. If you want to invest in precious metals but cannot afford to buy gold, then you need to buy silver. Most people are not aware that silver offers the same hedge qualities that gold does but is much less costly than gold.

Like gold, silver has recently endured a spot price correction. At around $30 per ounce silver is a bargain. The dollar has gained strength against the battered euro due to the continued debt crisis in Europe. This has cause both silver and gold to go down in price. However, this is a temporary situation because as the Euro Zone debt crisis stabilizes the euro will rebound and the dollar will go back down. This will force silver’s spot price up. In other words, the time to buy silver is right now before the price starts heading up.

Silver is also an industrial metal, yet demand far outpaces supply. As the supply continues to shrink, this factor too will put pressure on the price to go up. The dollar is really not as strong as some would like you to believe. The only reason it is showing strength is because of the debt problems in Europe. Many investors are seeking dollars as a hedge. Yet, once the dollar begins its decline these same investors will be seeking refuge in gold or silver.

As mentioned silver provides the same safe haven characteristics as gold, with one exception, silver is typically more instable than gold. However, this is what makes silver such an attractive investment. There is great speculative investment potential in silver because the price can become quite volatile. If you are looking for the potential speculative investing offers then you should seriously consider buying silver, before the price heads back up.

Finally, gold is an excellent hedge. However, not everyone can afford it at $1600 per ounce. If you thought you could not invest in precious metals because gold was too costly, you need to take a look at silver investing. Silver offers the same safe haven that gold does at a fraction of the price of gold. Furthermore, because silver is more volatile than gold there is a great potential for speculative profits.

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