A basic issue with silver investing for many people is that the actual metal is scarce, valuable and increasingly vulnerable to explicit and implicit confiscation.

Yet silver is not only an investment vehicle. It also acts as an alternative savings vehicle to saving wealth in fiat currencies.

Silver remains both literal and symbolic of the principles here. Furthermore, the physical possession of silver requires a different kind of investor strength and resolve, and it involves directly confronting market risk, storage risk and confiscation risk.

Silver Investment

Investment suggests the anticipation of making a profit, and that certainly has been the recent trend for those lucky to be holding silver. Most market observers acknowledge that silver will eventually trade to its intrinsic value based on the bullish underlying fundamentals.

Appealing investment qualities of silver investing include its various industrial properties and its strategic important as a scarce and valuable commodity with inelastic demand.

Will it matter if the thousands of ounces of silver used in each Tomahawk missile cost multiples higher in U.S. Dollar terms when the government paying for these weapons has an essentially infinite ability to create the necessary number of monetary units used to buy those ounces?

This highlights the role of silver as a monetary asset or one more akin to an alternative savings vehicle.

The Sanctity of Savings

People are now living in an economically challenging time period where savings and capital are needed most, and yet the reward for or return on savings is at its lowest point in recent history.

Saving requires self-respect, sacrifice, strength and stamina. Savings — like capital formation —is precious to the wider economic community.

In a system where the promises to pay are generally adhered to, savings should be rewarded over time by an accumulation of capital. This process would grant the saver more options and freedom than they otherwise would have had.

Investment implies trading or taking risk in return for an anticipated profit, but savers are owners.

Silver is Honest Capital

Silver is a scarce natural resource with considerable intrinsic value. As such, silver is honest capital. Taking physical ownership of silver requires self-awareness and responsibility. It is not easy.

Above all, silver investing and ownership requires honest thinking about ourselves, our capabilities and our limitations.

The protection of honest capital thus requires clear and rational thought about the world, its dangers, its opportunities and the nature of risk.

Since savers provide the capital which makes that activity possible, they make the satisfaction of society’s desires possible. As capital grows cumulatively, today’s capital stock lays the foundations upon which tomorrow’s prosperity is built.

Furthermore, the decisions that people of today’s generation make with their capital and savings are what they will leave to tomorrow’s generation. It seems best to leave capital of true intrinsic value to your heirs, rather than paper promises.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit www.silver-coin-investor.com

By Dr. Jeff Lewis

Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

Copyright © 2013 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.