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The Tremendous Potential
Behind Silver Investments

Silver has a tremendous potential for growth in terms of price. You've probably heard of the fact that the return-on-investment can be much easier achieved with silver than with gold.

Precious metal experts mostly agree - on the long term, silver's price is likely to rise a lot more (in terms of percentage) than gold's price.

This means that investing the same amount of money in gold will bring you less than if you'd invest it in silver.

Let's see more details about the growth potential of silver, the advantages and disadvantages of investing in this metal.

Silver is an Industrial Metal

This means that it's literally being used up by the industry.

Cellphones, computers, even wrist watches, welding rods, solar panels all contain large amounts of silver in them

Huge amounts of silver are being "wasted" every year. We build so many products containing silver each year and, we throw them out without recuperating the precious silver used up.

This is part of the reason why silver is getting more and more scarce year by year...
Another reason is that silver mines will eventually deplete. And, they won't be able to feed the "hunger" for industrial silver. Of course, under these conditions silver will become more expensive!

Yet, we are throwing out tons of silver each year. Cellphones, computers end up in landfills and silver goes there with them! Recycling silver costs and the return on investment would be hard to achieve, so the trend will continue.

The industrial usage of silver has been rising during recent decades. And, the IT industry, the alternative energy sector actually encourages the consumption of silver.

There's Less Physical Investment Silver
than Similar Kind of Gold

Investment gold is more abundant - there are more coins and gold bars than similar silver products. Yes, it's surprising, since gold is more rare... But gold is rare in the ground, not in case of investment metal products!

But people are more enthusiastic about buying gold. Manufacturers for decades have remained more focused on gold bullion manufacturing. Gold is more trendy.

Gold is easier to buy and sell, while silver is somewhat less popular. But if you want to purchase silver bars or bullion coins in larger quantities - you might be in for a surprise: quantities available are very low.

Bullion traders often report sell-outs of silver. There have been many cases in the recent past when the traders had more gold bars or coins available than similar silver products.

As explained earlier, silver is used industrially in substantially larger quantities than gold. The latter we tend to preserve with more care - since we adore gold so much. Gold is not consumed, it's not wasted.

As a paradox, silver is getting more rare, while the amount of gold roughly stays the same!

How High Can Silver's Price Climb?

Before making any future predictions, we will have to take account of previous performance.

The compelling graph below will show you clearly how volatile silver is and how it can bring multiple times 100 % ROI.

Silver's 10 year price evolution

Silver has reached staggering heights, having become almost 7 times more expensive in September 2011 than in 2005

The graph above shows the shape of a typical asset bubble. Indeed, silver was in a bubble, which means the next opportunity may be right in front of us!

Now let's see the solid reasons why Prime Values thinks silver can indeed reach the previous peak again and potentially - perform even better!

As silver is getting scarce due to industrial consumption, its price will rise higher as an obvious consequence.

Predictions for future silver price vary. In early 2013 an ounce of silver cost around 29 $, but the 50 $ limit will certainly be reached - the vast majority of precious metal experts and collectors agree on this issue.

A jump from 29 $ to 50 $ would mean a gain of 42 %!
If you invest 1,000 $ in silver when it's 29 $ and sell it at 50 $, then you'll cash in roughly 1.420 $.
Figures will be a lot more attractive with larger sums: 10,000 $ could turn into 14,200 $.

Of course, some aren't buying silver for speculation, but for preserving wealth on the long term.

But silver won't stop at 50 $ per ounce. It will climb higher...
Silver might as well gove above 200 $, some even predict 500 $! If this proves right, holders of physical silver will rejoice to have invested in this metal instead of holding fiat currency reserves.

But the most optimistic predictions even surpass the 1,000 $ level.

To see a more vivid example of how much you would have gained - if you would have invested in silver...
What's closer to us is the current and recent price of an ounce of silver. In 2008, the price of an ounce was slightly above 9 $, but in 2011 it hit a peak of 47.97 $. If you would have bought silver at 9-10 $, you would have more than quadrupled your investment if you would have sold above 40-45 $!

Should We Invest In Silver or Gold?


Gold is the "king of all hard assets", "the king of metals". Gold will be gold. It's more expensive than silver and it almost certainly will remain this way.

Silver is currently cheaper and perceived as "poor man's gold" - but, as explained it has a tremendous potential.

Silver can make your rich, but gold is the "standard" hard asset for wealth preservation.

You should check out our silver buying guide for details on how to purchase investment silver.

You should have a smartly diversified portfolio of precious metals. Own both silver and gold in adequate proportions. It depends on your scope (why you invest in precious metals) and the money you are willing to spend on investment metals.

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