We usually see the dollar’s decline as a bad thing, and it is… But it’s actually good if you’re into precious metals and seeing their value skyrocket.
While there’s no doubt that gold has had a good run recently, with prices continuing to rise, its less-valuable cousin silver has had its best month in 3 years in April, with a 16% increase this month alone.
Essentially, the more money we have in our economy, the less it is worth. This is called inflation, and its getting worse in the U.S.
This is because without the government telling us that it’s worth something, the dollar would be nothing more than green paper. Thankfully, even when the dollar’s value drops, there are other opportunities for monetary security.
Precious metals have been used as a currency exchange for thousands of years, and always have value no matter what country you live in or what your country’s current currency is valued at. This is especially true recently, because in addition to making jewelry, metals such as gold and silver are now widely used in the manufacturing and technology fields.
China’s economy has been falling in recent years and some investors stayed away from silver due to its use in manufacturing. But now, some analysts are seeing a slow, but steady increase in China’s economy.
Silver is back on the table.
Since silver is used in things like electronics, jewelry, and solar panels, there is always a demand for it. It sells for a lot less than gold, currently about $18 an ounce (compared to gold’s $1200) making it a much more reasonable investment for the average person.
Because of the increase in inflation, and worry by many economists that the U.S. could be headed toward hyperinflation, pushing the value of the dollar lower, silver prices will go higher, making it a great time to buy some silver.
To continue reading about silver’s prices going up, click here to read the article from Bloomberg.