This video by the Robert Kiyosaki of Rich Dad fame talks about investing in silver with Mike Maloney. Even though this post was done in 2008 when silver was $15 an ounce the points Robert and Mike bring up are still as valid. Silver, besides being a precious metal, is consumed in industrial uses. Our demand for today’s technological advances in devices like cell phones, flat screen TVs, electrical contacts in electrical devices has driven the demand for silver up. Industrial use like batteries, bearings, brazing, soldering and catalysts also consume vast quantities of silver. There are medical applications, antibacterial uses and uses in solar energy that are increasing the demand for silver. In these uses the silver is used up. It is not recoverable. Compare this with gold where the majority of it is horded in the form of coins, bullion or jewelry. All of the silver that was easy and cheap to extract from the earth is gone. Now we are forced to go after silver that is more difficult and more expensive to mine. This drives up the cost to produce silver. There are some silver experts that point to this increasing demand and diminishing supply as evidence we are running our of silver and will reach a critical point soon.
The second theme Robert talks about is “cash is trash”. How the printing of money by governments using “fiat” paper currencies devalues them and robs people who put their faith in paper money. The increased printing of paper money both devalues it and causes inflation. Silver investors and visitors to preciousmetalsinvesting.org have heard us talk about these same themes for years and tried to guide you to profit from rising silver and the collapsing value of the dollar.
Although we disagreed with the Rich Dad’s prescription to take your silver based wealth and put it into real estate. Most of his advice is spot on even 3 years later. The only thing that has changed is the increased urgency of the situation. As we have seen by the historic rise of silver in 2011 many silver investors are seeing the wisdom of putting their money in silver and avoiding the dollar whose value is rapidly eroding.
Visit some of our other pages here at PreciousMetalsInvesting.org for more great advice on silver investing and Precious Metals investing from Ted Sudol and Paul Mladjenovic, author of Precious Metals Investing for Dummies.