What is Silver Worth?

CURRENT SILVER PRICE ⇒

To understand what is Silver worth, we need to understand some of the forces that are driving the Silver Price. Unless you have been hibernating for the past 10 years, it is easy to see that we are in a deep recession. While many say we are on our way out of it, the US Unemployment Rate is still above nine percent; that is more than 50% higher than it was just four years previous. In an attempt to “boost” the global economy, governments around the world, especially that of the United States, have endorsed the Keynesian Economic principles and pushed through Trillions of Dollars worth of Bailouts. One might think, “Wahoo! More Dollars in the economy!” but as more dollars are printed, the worth or purchasing power of that dollar is lessened. Does the word Inflation ring any bells?

Let’s say you buy two loaves of bread with $2.00. One year down the road while comparing grocery receipts, you see that for the same two dollars you are only getting one loaf of bread instead of two. Now this is just a simple example of how the dollar is losing value, but you can see similar examples in stores all over the country. The value of the US dollar is dwindling, and as a result, the worth of Silver grows.

If you look at the image to the right you will find two charts overlapping. The faded chart in the background shows the value of the US Dollar in the last 10 years. The dark red line over top, charts the Silver price per ounce in the last 10 years. It doesn’t take an economist to see that as the value of the US Dollar goes down, the Worth of Silver rises.

My wife and I were out to dinner the other night having a wonderful time. Amidst our conversation of food, home projects, and babysitters, I heard the words Silver and Invest used in the same sentence coming from a table adjacent to ours. I couldn’t help but pause, and eavesdrop on what he had to say about silver. The man continued by saying, “A few friends of mine have been talking about buying silver; they say the silver to gold ratio is very low and now might be a good time to invest in some.” While I agreed with him completely, my attention turned to the second man he was speaking to. I desperately anticipated his reaction, but surprisingly, the man nodded his head a couple times, sighed, and quickly changed the subject to a stock of some local start-up company. I wanted to grab him by his collar and scream, “DON’T YOU UNDERSTAND WHAT SILVER IS WORTH?!”

The government is creating money out of thin air; the more they do it, the less your money is worth. Inflation is not something that might occur in the distant future; it is happening today with the prices of the products you and I are buying. What is silver worth? In my opinion, it is worth protecting my family and me from the dangers of our current economic situation, by turning to silver as an investment.

by Jim Little

(Precious Metal Markets are Extremely Volatile! Quality Silver Bullion (“QSB”) will in no way be liable for any market loss one might incur.)