To weigh up the advantages and disadvantages when buying silver
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Why buy silver


There are many good reasons that militate for the purchase of silver. You will find the most important ones here.


Silver is unique and is needed

Some people declare silver disrespectfully as the 'gold of the impoverished people'. However, a perspective strictly reduced on the purchase price does not cope with this unique precious metal.

Currently, approx. 50% of the annual world production of silver are already used in the industrial exploitation. Due to its physical characteristics, silver is absolutely not replaceable or only replaceable in a very restricted way by other substances.

Silver, for instance, conducts the electric current better than copper but warms up much less. Each photovoltaic module needs silver, in each automobile there are approx. 2 ounces of silver obstructed, in each smartphone approx. 6 g, and the latest generation of flexible displays and the shortly starting conversion of the retail sector from 'barcode' to the so-called RFID chips (wireless chips) are only some examples.

Furthermore, the antiseptic effect of silver is already known from the time before the discovery of the antibiotics. Travellers make water aseptic with fine silver powder ('MikroPur'), refridgerators and computer keyboards are vaporized with silver for reducing the bacterial count, and colloidal silver finds a wide use in the alternative medicine.



Silver is rarer than gold

Only very few people know that silver is even rarer than gold in absolute numbers. Indeed, geologically there is approx. 16x more silver than gold in the Earth's crust, however, approx. 90% of the silver ever extracted from the ground is irretrievally exhausted. And also the central banks of the world have sold their silver stocks after the 80s of the last millennium.

With the gold it is exactly the other way round: 90% of the gold ever mined is still available, in the form of jewellery or in the safes of the central banks or the pretty folks.

Estimations of experts assume that currently approx. 1 to 1.5 billion ounces of silver are faced with totally approx. 3 to 5 billion ounces of gold that are available overground.



Silver is undervalued

Since more than 2000 years, there are records about how many ounces of silver one will get for one ounce of gold. The so-called 'gold-silver-ratio' amounted to 1:16 in the longest period, which corresponds approximately to the geological deposits in the Earth's crust. Mine operators who have both silver and gold in the ground calculate on a gold-silver-relation of approx. 1:35.

The current gold-silver-ratio at the commodity futures exchanges amounts to more than 1:60 (as of August 2014). Most of the experts assume that the old gold-silver-relation will be restored in the medium-term.

With regard to the next years, this would mean that the silver price will increase 2-4 times more sharply than the gold price.

James Turk, a famous American gold expert, has calculated for the period from 2000 to 2014 that gold has appreciated in value on average by 10% per year and silver approx. by 14% per year.


Silver as a life belt during the crisis
© fotomek / Fotolia


Silver is not only (but also) good for the crisis

Silver is the only precious metal with a double character as an industrial metal and money metal. One day, the 'stupid' financial crisis will be over and the 'crisis refugees' will change back their gold and silver. However, at this point, the economy will start up again and silver will find an increasing use there. In this respect, silver is the more optimistic metal in the long-term because it is not only used as an 'escape currency'.

However, at the same weight it is more voluminous than gold and therefore more unhandy. In this respect, both belong to the depot: silver and gold!



Conclusion: Silver belongs to every portfolio!
© Georgios Kollidas / Fotolia

Conclusion: silver belongs to every portfolio

We are happy to advise you in which relation to one another you should purchase silver/gold, if as a coin or bar, in which denomination, how you can inspect it for authenticity, how you can store it. Simply arrange a consultation appointment!


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