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SIGNIFICANCE
OF SILVER AS AN INVESTMENT
In days gone by silver was not an investment it was money, in fact silver passed through more hands in everyday commerce than any other real money including gold. I state real money to distinguish silver money from modern paper money, which has flooded the world “money” supply the past three decades. Silver held absolutely no value as an investment when it circulated as money, it served its function perfectly, unit of account, means of payment, and most importantly as a store of value. In 1993 the United States had been off the silver standard for almost thirty years and people forgot how an honest monetary system worked. You see the need for financial planning and making assumptions on the inflation rate and future economic conditions are for the most part unnecessary when honest money rules the day. Why? Because the common man knows how much saving they will need in the future. The monetary value is the same in ten, twenty, thirty, fifty or hundred years when the monetary system is honest. In actual fact the prices of things generally move down slightly due to stable money and the ability of people to improve products and services and the natural competitive nature of the free market. But alas, the facts are the U.S. government cut all ties to silver as money in 1965, and Nixon closed the gold window in 1971 for international gold settlement. At that time neither precious metal was “considered” money officially. Perhaps at this point we might consider both the precious metals to be “investments” because the paper price of the metals was now determined as their value as commodities. But unique commodities they are because silver and gold have been recognized as wealth in and of themselves for over 5000 years. Traditionally, savings and investment were two separate things, saving was “money” and investment was that money put to some use, either loaned at interest or perhaps used to build some real estate or purchase part of a business (stock investing). So today most silver investors are not really investors in the traditional sense, they are people with knowledge of history and understanding. They know many important facts that most investors never will learn.
So, silver is an investment in seeing clearly how the world works and taking action that is being vindicated by the marketplace, but don’t let anyone tell you it is money after all money is not an investment! David Morgan ©
2008
David Morgan Mr. Morgan is a contributor to Mining Industry Review an e-TV program available at FreeMarketNews.com He also hosts a weekly Metals Wrap-Up each week on the Financial Sense Newshour. Mr. Morgan and has written numerous articles, his e-mail newsletter, The Morgan Report, is issued on a monthly basis and includes economic news, overall financial health of the global economy, currency problems ahead and the reason why people need to be invested in the precious metals. His website is www.silver-investor.com. Mr. Morgan is author of “Get the Skinny on Silver Investing." CONTACT
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