Why is Silver a better choice over Gold?
By Muhammad Ali
I have always favoured Silver over Gold, I have my reasons for making this choice but what are others saying as well?
So I took this question to my friend The Dinarian. He has a YouTube Channel related to Dinar news and he is very bullish when it comes to Silver.
I wanted to see if what his choices are on silver matches mine. I contacted him with some questions and here's what he had to say.
Hey The Dinarian, I know you are in favour of Silver over Gold and I wanted to get your opinions and compare notes. Can you please answer my questions to give my readers another opinion on the matter?
Muhammad: Why do you really favour Silver over Gold?
The Dinarian: I personally like Silver over the precious metal gold for numerous reasons; the first being that I believe silver is currently under-priced, by a huge margin. Your profit potential with silver is huge and the low risk at these price levels makes it that more attractive over gold. What is it at today $18.00 an ounce or so? In my opinion every household should be holding some of this beautiful piece of real money in today’s world of chaos. Just a few years back silver was around $50.00 an ounce and I believe we are heading back to that level and past.
Muhammad: What makes Silver more sought after?
The Dinarian: Silver is more attractive to investors and collectors due to the affordability, profitability and its use in technology, it is simply put, more useful in today’s industries. While gold has always been known as the go to safe haven by many investors, I personally prefer silver especially as they are shutting mines down these days. There will be less of it available then there is today. For an example silver is highly used in solar cells, and electric automobiles. As these two industries are being highly pursued by the two biggest economies of the world, the U.S. and China, it will further drive up the demand for silver, as mining the precious metal dwindles. This alone will provide a huge increase in the price of silver. On top of that, with the world headed into chaos, more and more people are running away from the doomed US dollar and running to safe haven assets, and many just can simply not afford to stockpile gold.
Muhammad: Do you feel in the future it will still be easy to find Silver?
The Dinarian: Absolutely not, as I mentioned in the previous question, the mining of silver supply is going down while the world as a whole is using more. The simply rule of supply and demand will drive the price up, which in turn will cause more and more people to jump on board the silver train. This will further drive down the availability of silver. On top of that, you have many people such as myself that are invested in the Iraqi Dinar, which will be creating a whole new crowd, that are being primed by blogs all across the world to purchase precious metals. This will further dry up the shiny metal.
Muhammad: Do you think it's wiser to accumulate Silver coins over Silver bars?
The Dinarian: I personally prefer the rounds and bars myself, over either as they are closer to the spot price of silver, which means I can purchase more of it at a cheaper price. It is really up to the individual investor to choose, Coins can vary in price due to different numismatic reasons, such as the amount of coins made of a various style, region or mintage, while Silver bars also vary with different designs, and they are sold at or just above spot price for the most part. The rounds as well are sold at or just above spot price but are available in a wider variety of weights. Let’s face it, look at Iraq for example, if you were in that chaos, would you be worried about the numismatic value of a high priced China Panda coin, or would you want the value of the actual silver itself to trade for food or clothing? So you definitely want to have a few fractional rounds in your possession just in case. Let’s face it the world isn’t heading in a friendly direction right now, and you will definitely want something to barter with if need be. On top of that, the rounds are usually made by a private mintage and have pretty cool designs on them. When all is said and done, I think bars and rounds are the way to go, but that’s just me. Like I said earlier it would be up to the individual investor as to what they choose to hold.
Muhammad: What about buying Silver collectible coins? Is that a good idea?
The Dinarian: After you have about 100 ounces of rounds and or bars, I would say go for it, get a few. Some of them are beautifully made coins, and very rare. Collectible coins also will increase in value as silver increases, as well as time may drive the prices up. It all depends on the desirability of the specific coin. There are no guarantees in life and this is a prime example. You will be betting that the coin over time will increase in value due to its scarcity or desirability. You would need to find someone that desired that specific coin and is willing to pay the high price you are looking for in the end.
Muhammad: Where do you see Silver levels going in the future in comparison to Gold?
The Dinarian: Realistically I see silver easily hitting $100/oz. short term and $800+ and ounce long term. Just the supply and demand aspect of Silver I believe will drive the price of silver upwards or past the 100 mark. As I explained earlier, the supply of Silver is decreasing due to industrial and investor usage and the demand is ever increasing as people are starting to wake up and realize fiat monies aren’t real money. Go back to biblical times, they didn’t bring Jesus shells to the manger, they brought him Silver and Gold, the only real true time tested money. On the longer target of $800 plus, this is based on the fact that a certain bank is currently in a federal lawsuit, as I believe its eight of its traders were caught manipulating the precious metals market. When the true value of silver shows, I truly believe it has the capability to reach the 800 mark and even go past $1000 an ounce. If you do your research you will find silver was more expensive than gold in Egypt until around the fifteenth century BC, and as we use more and more of this precious metals reserves up and it diminishes, well let’s just say, Silver is the New Gold.
Muhammad: And how does the above question relate to our returns on Silver investments?
The Dinarian: I think I answered this above.
Muhammad: Many thanks, my friend, for taking the time to answer my questions.
There you go guys, what he said, is exactly my thinking as well, however, I would just like to add to try to have a balance of some physical Gold as well. With my Currency Exchange Planner it makes it easy to budget your precious metal purchases and you can adjust the percentage of metals that you want to buy very easily. It is very important to know and understand the reasons behind and each and every decision that you make when it comes to your planning. For example, if you decide to purchase more gold over silver, why? Or if you decide to purchase more silver over gold, again know why you've made that decision. Having a clear mind and a clear plan is what will position you to be among those who are in the 20-30% that will retain their wealth for the long run.
Never lose sight that 85% of the millionaires created during the Kuwaiti RI, went broke in 5 months. We do not want to be part of that group. So it is important to reason and rationale each and every decision that you make in your planning.
Now, before I end my article, I just wanted to leave you with another article from the New York Times that confirms what I have written before regarding the Smart Money and Market Manipulation. The author of this article refers to it as a conspiracy in the Silver Markets, however, there is no conspiracy about it; it is the Smart Money aka the Profession Traders at play.
A Conspiracy With a Silver Lining
So please check the Articles' page of my website and find the article that I wrote about "My Thoughts on Gold and Silver" and how I explained about the Smart Money and what I feel will happen to precious metals after RV. The more you understand the more you are aware, and then when things go chaotic you won't be the one trembling.
Thank you everyone and I hope you found some benefit in my article. I also wish to thank The Dinarian for his input on Silver; you can visit his YouTube channel https://www.youtube.com/channel/UCvrWtma4GYpkIbPaNLBb4zg
And please take a look at my other articles on Iraq and the RV and please take a look at my software, The Currency Exchange Planner.