Silver prices will remain inversely proportional to the value of the dollar in the short-term. As the Federal Reserve continues investing in government debt, the current trends are unlikely to change course. Silver is an industrial metal, and this makes it more scarce in the long-term than other precious metals. Most currencies are under attack by the established financial oligarchy, and those looking for an alternative to currency favor silver. As folks look for a way to conserve the value of their savings, they are seeking an investment that is not expected to follow the value of currencies like bonds or other paper assets. Some trade their fiat currency for commodities other than metals such as coffee, sugar, or oil, but these items are bulky and difficult to maintain. This leaves the precious metals as the best option when trying to escape the worldwide demise of the fiat currency schemes.
The currencies of most nations are being devalued in an effort to convince the populations of the world to accept a unified currency, which would be controlled by one central entity. This radical idea is being met with considerable resistance, but the large financial entities that are in favor of it have the power to manipulate the value of currencies. By presenting vague arguments that rely on complex financial equations, they leave the currency carrying populace to think about what they can comprehend. That is the fact that their money buys less of what they need by the day. When it gets to the Silver water Jug point that they cannot secure what they need to sustain a comfortable lifestyle, many people will begin to accept any idea that rescues them from this decline.
Commodities are material goods that are used in the real world as raw materials for the manufacture of other, more complex products. Some commodities are sold on the retail market largely unchanged from their wholesale form. The agricultural commodities are perishable, however, and do not make good investment vehicles. The high volume to value ratio makes them costly to store and maintain, as well. Lying between agricultural commodities and precious metals when rated on the ease of maintenance are the base metals. Although they are much less perishable and have a lower volume to value ratio than agricultural goods, the ratio is much larger than that of silver, gold, platinum, and other precious metals. The equivalent of a year’s income would be enough to fill a warehouse.
Those that are aware of the current trends will act preemptively and trade the currency they have saved for something else that conserves the value of their earnings. Those products that increase in value the most as the value of currency falls become very popular investments. This popularity serves to increase the rate at which the value of these commodities rise. The commodities become an alternative to currency, which is a demand that is completely separate from the practical demand for them as raw materials for manufacturing or consumption. The products that are easier to trade and easier to keep are the most popular. Gold prices are rising similar to silver prices, but gold is very expensive. It is difficult to trade gold for small, relatively inexpensive items. A piece the size of a dime is worth a cart full of groceries. It is difficult to trade for smaller items that might be worth a piece the size of a grain of wheat. On the other hand, silver has the perfect volume to value ratio to make it an excellent form of money.
Silver prices continue to rise as the value of the currency falls because, throughout history, silver has been used for money more than any other substance on the earth. A piece the size of a dime is worth a gallon of gasoline or a loaf of bread. It does not decompose or rust away. It has uses in manufacturing, which gives it an intrinsic value and can only serve to increase its value even more. Since those that are in control of the volume of currency in the system have advanced their schemes to the point of no return, there is a need to abandon currency before too much value is lost. Precious metals, especially silver, are the only conceivable investment to preserve the wealth that an individual has accumulated. It even has a potential to be profitable if it is purchased before the rush begins in earnest.