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Buying $SLV to Hedge Against Inflation

The U.S dollar is in trouble. The U.S federal debt is over 25.5 trillion, and the current actual federal budget deficit is $3.6 trillion. If you are holding cash, it is essentially trash right now, inflation is eating your hard-earned money, and the more government is printing, the worse it will get. Federal debt is increasing at a high-speed rate, and if we have another round of stimulus, your money will depreciate even more.

Assets are priced at a premium right now, so if you have your money in cash, stocks might not be the best place right now; in my opinion, Silver is the best place for your excess cash right now to fight inflation.

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Fear drives up inflation prices; right now, people are super greedy with their stocks, making me fearful of a potential recession or economic. Fear of war, defaults, inflation, civil unrest, and anything that undermines trust in government. A week after the Lehman Brothers bankruptcy in 2008, Gold and Silver jumped by 15%. Three years later, during the height of the European government debt crisis, when the obligations of Italy, Ireland, and Greece resembled junk bonds, Silver more than quadrupled in value, while Gold increased 250%, so from those historical events, a fear of a financial collapse will most likely make the silver go up in value.
Owning precious metals like Silver is insurance for your money not to get swallowed by inflation or an economic meltdown. We pay premiums before disaster strikes, hoping that we won’t need to make a claim. A small investment in Silver, less than 5% of a portfolio, serves the same purpose. You are buying insurance when the premiums are low and keep the coverage. Letting the protection sit in your account could pay off in future market turmoil.

I say invest in Silver and not gold right now is that it is a cheaper metal than Gold and rises faster in value when disaster strikes. Right now, Silver is the better bargain as an insurance investment of your money; it has declined by more than 65% from its 2011 peak, while Gold is off by about 30%. If Silver is in your portfolio right now, hold it.
The Gold to Silver ratio, which fluctuates daily, is presently about 98:1, which means it would take 98 oz of Silver to purchase 1 oz of Gold. Gold will rise in the future to USD 3000-$5000 per oz by some estimates; therefore, Silver will follow at $30–$50 per oz.

The USD is currently the world reserve currency, a status it has enjoyed since the Bretton Woods Conference established it about seven decades ago. If the U.S. dollar losses its current world reserve currency status and collapses, Gold could spiral as high as USD 50,000 per oz. In this event, Silver would follow at approximately $510.00 per oz. It is using the same metric above. Silver could also quickly increase in value to $1000+ per oz, based upon its commercial value as a raw material to hundreds of global industries.

Buy Silver and hold it for the long; even if it’s 2% of your portfolio, it could pay off in the next recession or economic meltdown. If we get another stimulus package, your cash will decrease in value, and your “savings account” won’t help you hedge against inflation. Buy Silver and hold it will be worth it in the long run.

Categories: Financial Advice

Bodhi G.

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