Bullion, Why invest in Silver

Bullion is the basic commodity traded in the precious metals market. By adding precious metals in general, and silver in particular, to a portfolio of stocks, bonds and mutual funds, an investor is introducing a tangible or real asset to the asset mix. This increases the degree of diversification and protects the portfolio against fluctuations in value of any one asset type.

Economic Forces
The economic forces that affect the price of precious metals are different from, and often are opposed to the forces which determine the price of most common financial assets. This independent movement of precious metals to other financial assets can reduce overall portfolio volatility and contributes balance.

The Declining Dollar
The purchasing power of the U.S. dollar has steadily declined over time and is expected to continue to do so. Precious metals can often provide a “hedge against inflation” capability. For example, between 1971 and 1981, the U.S. dollar lost more than half its value, while silver prices rose nearly five times. Economies fluctuate between inflation, recession and expansion, precious metals investment help diversify and lower overall risk.

Asset Allocation
Whether you are conservative or aggressive in your investment approach, precious metals can represent an important part of your asset allocation. Some experts suggest that 10-15% of portfolio assets be in precious metals. No matter what level of risk an investor wishes to take, every portfolio needs a secure foundation
.


Silver is driven by monetary and industrial demand :

In 2007, total global silver investment was valued a $500 million.  However, five years later this amount grew to nearly $8 billion in 2012.  While that sounds like a great deal, this figure seems insignificant compared to the dollar amounts being thrown around the world today.

If we were to add up all global silver investment from 2007 to 2012 we would end up with a total of $26.4 billion.  That’s right… $26.4 billion.  It is a very paltry figure when we realize the Fed purchases $85 billion a month of U.S. Treasuries and MBS – Mortgaged Backed Securities.

Just think about it, the Fed bought more in MBS in the month of May than was invested in silver by the world in the past five years.  When we examine these two figures together, it puts it into perspective just how out of whack the whole system has become.

The central banks will continue with the insanity of using monetary stimulus to prop up the world’s financial markets until the whole system implodes.  Once the Fed and central banks lose control of over the paper game, there will be a mad rush out of paper instruments and into physical assets.

Not many realize it, but Silver investment demand is a ticking time bomb, now is the time to buy.


Cooper Enterprises is one of Florida's largest silver bullion dealers, we buy silver for the current market price, and sell it for a small percentage over. 

The Sarasota Silver Proof Coin, exclusive to Cooper Enterprises of Sarasota Inc.