The Case for Silver

Hi, I’m Ron Paul and I would like to talk to you about how you can protect your hard-earned retirement accounts with silver, a precious metal that I personally recommend to every investor.

While the stock market has been reaching all-time highs in recent weeks, those numbers are deceiving. Many experts believe that stock markets are in a bubble, and that the markets are on the verge of a crash. Bond markets, too, have been in a years-long bubble because of trillions of dollars of central bank bond purchases. Once central banks stop buying (and they will), the bond bubble will collapse too.

So what’s worth investing in? I have a lot of my money in silver, and so far I’ve done very well with it. There’s a great case to be made for investing in silver.

Silver’s Correlation with Gold

“Silver follows gold” is an old adage that a lot of precious metals investors swear by. That means that when people start putting their money into gold as a safe haven, they put money into silver too, driving up the prices of both gold and silver.

The prices don’t rise at the same rate, however, and the ratio of the gold price to the silver price fluctuates too. It can be beneficial to invest in silver when it’s relatively undervalued compared to gold, because silver can occasionally surge in price to catch up to gold’s gains.

An observant investor can spot this disparity and invest in silver just before it takes off. That’s what I did last year. I put my money into silver at just the right time and it turned out to be a smart decision, as it took off to catch up with gold’s performance.

When the gap between silver and gold becomes apparent, a lot of investors actually prefer to have their money in silver. Not only does it have the catch-up factor, but it’s also cheaper, allowing more people to invest in it.

Silver as a Safe Haven

Last year was hardly my first time investing in precious metals. I put a large chunk of my savings into both gold and silver in the 1970s and I’ve kept it there ever since. In fact, I’ve hardly even touched it in that time. That investment has paid off. In 1971, when I first made the investment, silver averaged less than $2 an ounce. The spot price currently hovers around $18 an ounce— a nine-fold increase.

Silver is a lot like gold in many ways. It’s a physical asset that maintains its value over time. This makes it a great safe haven to guard against market fluctuations. When stock prices plummet, silver tends to rise, keeping you from losing your nest egg.

Some financial experts worry when gold or silver prices decline, but precious metals and other physical assets aren’t short-term investments or a get rich quick scheme. They’re about the long term. In the short term, silver may have its ups and downs, but over the course of a decade or more, it trends upwards. This makes it an excellent investment to help you build up your retirement savings.

I believe that a number of traditional financial assets are currently in bubble territory – stocks, bonds, even the US dollar. They’re beginning to reach levels so high that a correction is just around the corner. And when that correction materializes, the aftermath could be even worse than the financial crisis of 2008.

When the 2008 crash happened, many Americans lost retirement savings that they had built up over the course of their careers. Don’t let that happen to you. By keeping a portion of your investment portfolio in gold and silver, you can weather the storm that’s on the horizon and protect your nest egg so that when the time comes, you’ll be able to retire comfortably.