Cash, stocks, and bonds all need the endorsement of another part to make the contract valid. Silver is considered real money for two reasons: First, it doesn’t need another party to declare its value. Silver, by comparison, is real money because its value is based on the value of a physical asset. The worth of money in circulation only has value because it is fiat money that is, money the government has declared legal tender based on the supply-demand ratio of currency. Precious metals are often referred to as “real money” because they are not printed out in a mint nor stored as digital currency on a computer server. Silver is Considered “Real Money”Īlthough we don’t think of silver as currency, it is considered money. Currently, silver is hitting another 10-year high. In bear markets, gold does better, but in bull markets, silver soars. This dramatic price range occurs because silver is a tiny market compared to gold–so any movement in the silver market has a greater impact on the price compared to gold. To calculate the gold-silver ratio simply divide the price of gold with the price of silver at a particular time. Then from 2008 to 2011, gold gained 166%, but silver gained 448%. From 1970 to 1980, the value of gold gained 2,328%, but silver gained 3,105%. When it comes to the gold and silver ratio, silver has outperformed gold from 1970 to 1980 and from 2008 to 2011. A physical asset like silver is a hedge against cyber criminals hacking your financial assets recorded on a computer ledger and a hedge against the rising cost of living. It’s small enough to put in your pocket and it’s a confidential and private means of exchange. Silver, by comparison, is a tangible, physical asset whose value is recognized in all countries. Silver is a Physical AssetĪlthough wealth is often measured by numbers in a computer or by paper notes, both these forms of wealth are subject to fluctuations in inflation rates and changes in exchange rates. It’s affordable for anyone seeking to invest in a precious metal. Currently, silver is about 1/70 th the cost of gold and it will protect you with its high value in the event of a financial crisis. Unlike gold, silver is affordable right now. Let’s take a closer look at these 7 reasons: 1. The demand for silver jewelry is increasing.Silver is outperforming gold in bull markets.We’ll also take a look at why it’s better to buy silver bars rather than silver bullion coins. In this article, we will take a close look at reasons for buying silver bullion, the best silver bars to buy, and the best way to buy silver bars. Precious metals like silver have long been considered a source of wealth throughout recorded history-from the earliest civilizations to modern times.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |