Investing in Silver....Part 2

Some of my readers ask me - I have heard of gold, but I haven't heard of silver as a means of investment. Why ?

Well, it's elementary.

Mr. Warren Buffet, the world 's No. 2 richest man ("Oracle of Omaha") as also his guru Mr. Benjamin Franklin has openly stated that the entity "Mr. Market is a neurotic person" .

It's a problem of "mass psychology".....people do buy and sell in hordes. We all make the mistake of buying when something's overvalued......that's why we all lose in the stock markets.

You see, silver's been GROSSLY UNDERVALUED FOR THE LAST 100+ YEARS.

Countries stopped buying silver in the late 1800's, and we started buying GOLD.

It was money or gold or real estate.

Then came the stock markets and other means of investment.

This resulted in a steep ARTIFICIAL DROP in the value of silver.

And that's another reason why silver is vastly undervalued.

It's still undervalued.

INVESTING IN SILVER ........Part I

Investing in silver has proved to yield far better results than the stock markets (for example, the Dow Jones Industrial Average or even the Asian Stock Markets) and gold.

Now, check out this fact......

During the period July 2003 to November 2006, if you had invested in the following 3 items, you would have gotten these profits :

• Returns from Silver were 210 %
• Returns from Gold were 84%
• Dow Jones Industrial Average yielded a mere 35 %

So, how come savvy investors HAVE heard of silver yielding results, yet it is not yet that publicized ??

Yes, it's that mass market psychology, folks....the same mass market psychology that the greatest investor of all times, world's #2 richest man as of last year Mr. Warren Buffet & his 'guru' Mr. Benjamin Franklin prompted to say that "people buy and sell in hordes".

This is in fact, the RIGHT TIME to buy into silver...it hasn't peaked yet.

Check out the graph below. graph source : kitco.com



The above graph shows how silver prices are skyrocketting.

Silver prices have especially started to move real up after September 11, 2001.......I 've also noticed that.



Another fact :

There is going to be HUMONGOUS SCARCITY OF SILVER in the market. Why is that so ?

Because the demand FAR EXCEEDS the supply.

This is because silver is used extensively in PC mainboards, electronic circuits and even some electrical circuits.

Due to the huge boom in PC manufacturing, there is going to be a HUGE DEMAND FOR SILVER.

And right now, my research indicates that there IS JUST NOT ENOUGH SILVER AVAILABLE TO BE PROPERLY EXTRACTED FROM MINING.

GOLD & SILVER .......right time to invest

This is just about the right time to invest in both Gold & Silver .

As for Gold, as I had pointed out in my blog globalstudy.blogspot.com

1. The dollar is weakening against the euro & other strong currencies. That always historically pushes up the gold. There's an INVERSE RATIO between the two.
   
2. It's basically a wartime economy, folks. Some analysts are of the opinion VHNWI 's are hoarding up on gold in billions. Besides these some corporations are also stuffing up gold.
3. This leads to a temporary shortage, pushing up gold prices even more in the future.
4. Further terrorist attacks or even the threat of further attacks will boost up gold further.
5. There's a credit crunch, leading to gold price increase.

SILVER

As to silver, there's a serious scarcity in the market. There are newer demands on silver brought about high-tech.

Plus, all you have to do is look at the silver price hike...

Between 2003 July - 2006 November, gold hiked by around 90 % while silver hiked by 200 %.

In fact, silver might be the GREATEST LONG-TERM INVESTMENT , apart from some pockets of real estate....which are in fact, more hard to predict.

Main principle in becoming rich EASILY

We can all become rich easily, believe me.....

Yeah, I know, you've already become a skeptic. Even I was.

But then, let me share with you the ONE PHILOSOPHY that is ABSOLUTELY ESSENTIAL in BECOMING RICH :

BE POSITIVE.

Whatever obstacles, come your way, you gotta be positive.

I'll show you 100 + ways of becoming rich, but you've got to be positive.