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Why buy silver?

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I'm sorry, but it seems like Answers is full of clueless "wannabes" that need to stop sniffing their dirty socks to get a high.

To answer your question, precious metals are a hedge against inflation (as are all precious metals). For example, in 2002, the average price of gasoline was about $1.28 per gallon and silver was trading at around $4.50 per ounce, which means, that you could have gotten about 3.5 gallons of gas for 1 oz. of silver. Today, gasoline is about $3.23 per gallon and silver this year has averaged about $17.55 per ounce, which means, you could get get 5.4 gallons of gas for 1 oz. of silver. As you can see, as the dollar is losing value, silver has kept it's purchasing power in terms of gasoline. Another example; in 2002 the average home price was $226,500 which means it would have taken 50,334 ounces of silver to buy a home. Today, the average home price is $301,900, so it would take only 17,203 oz. of silver to buy a house. Again, silver prices have been outpacing the rate of inflation.

During the Weimar Republic Hyperinflation, the people that made it through were the ones that accumulated precious metals like gold and silver.

In addition, if you had bought silver in 2002, you would have seen a return of 290% return on your investment. In equities, you would have seen a return of only 72% - silver returned 4 times more than equities.

The investment cycle right now is favoring commodities. So, the primary reason for buying silver is wealth preservation. Throughout history, fiat currency's have come and gone, yet precious metals have been around for thousands of years.

It's just not something to buy because it's pretty. Like I said, throughout history, during times of inflation, people that had precious metals preserved their wealth and purchasing power.

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Thank you! This helped so much!!!
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  • David M answered 7 years ago
    Silver, gold and other precious metals (along with many other commodities) have had one hell of a run up over the past year or so. In my opinion (in concert with what looks to be a slowing economy) that run is nearing or has hit an end. Near to mid-term I believe commodities (including silver) will be flat or even going down in value. I sold all my gold stocks a couple weeks ago. Not right at the high, but before gold dropped precipitously. My opinion is to wait and see on silver. Best not to buy at a or near a top. Better to have purchased it a few years ago at $5-$6 an ounce.
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  • Doug S answered 7 years ago
    One of the reasons for buying silver is it's lower cost relative to other precious metals. You are buying it for all the usual reasons, a hedge against inflation, and maybe most importantly, you are buying something easy to sell (ebay).
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  • Turbanator answered 7 years ago
    The only reason I buy silver is because I use it in my glassblowing hobby. If you burn it, it makes pretty colors. Same thing with gold but thats more expensive.
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  • Beau.Gus answered 7 years ago
    The ONLY good reason to buy silver is because it is pretty as jewelry.

    Oh, unless you are a glassblower!
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