Silver Investors, Safe Havens, and Municipal Bonds

Silver investors have been seeing their investment grow almost daily. Silver had a fantastic run up to nearly $50 dollars in April before pulling back. Some of the commentators have been calling this a “silver bubble”. Ted Sudol of and Paul Mladjenovic, author of Precious Metals Investing For Dummies dispute this. Silver has had in the past and will continue to have short term volatility (for more in depth historical examples of these pullbacks see Paul’s article) as it marches ever higher. Those who wait out this short term volatility will be rewarded. Those who run for cover will miss out on the profits to come. The demand for silver for today’s electronic devices like flat screen TVs, ipods and ipad has never been stronger and is growing as citizens in other countries become more prosperous and demand the latest electronic conveniences. The demand for the ipad in the US has been so strong that Apple delayed the worldwide release. Besides the antibacterial use of silver new medical uses for silver are discovered practically every day. The demand fundamentals are still in place and getting stronger. Do you see China or India giving up their growing demand for the silver to produce the electronic devices their people are demanding?

Another important important point is that most of the silver used in industry is consumed – its used up and cannot be recovered. So more has to be produced to meet these industrial needs. So demand will remain strong now and in the future. You can contrast this with gold where I think current statistics are that 98% of all the gold ever dug up and refined from the ground is still with us in the form of jewelry or currency.

Many have been been viewing silver and the precious metals as a safe haven given today’s tumultuous financial and social times. The governments of the world have been creating tremendous amounts of new debt as they try to deal with some of the current financial situations. To deal with these problems many countries, like the US, have been printing up tremendous amounts of money. This had led to the falling dollar and the growing perception that the dollar is a diminishing asset. As the “Rich Dad” author said in his video, “Cash is Trash”

Now for the required disclaimer
The information on this web site should be considered opinion only. We provide it based on considerable experience investing in precious metals. Both Paul and I personally invest in silver and put our money where are mouth and beliefs are. There will be short term volatility – you can count on it. So you have to carefully consider your personal financial situation before you invest. I’ve never understood how you are supposed to be more confident in media financial advisors who tells you this or that investment is the greatest thing since sliced bread and then concludes his segment saying he doesn’t have any of his own money in the investment he recommends. What does that mean? Does it mean he doesn’t really mean what he says? That he wants you to try it out and see how it goes and then he’ll jump in? I say if you are willing to recommend something then you should have some skin in the game.

I’m not talking about pump and dump. Those guys should be drawn and quartered. We’re long term investors confident that silver will rise despite some short term volatility.

Be sure to check out some of the other videos and articles here at

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