Why Silver?

Should You Invest in Silver Now? 'Rich Dad' Thinks So

Jan.25.09 | About: iShares Silver (SLV)

David Morgan

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What most investors hear time and time again is that "timing is everything." This is an important factor for any investor and especially those who aspire to become truly financially independent. And, no one knows how to time the market like Robert Kiyosaki – author of Rich Dad, Poor Dad.

Kiyosaki knows that there is a time to sow and a time to reap. He has reaped fortunes that helped him retire at the early age of 47. And, he sowed when real estate was not the preferred investment class and he cautioned real estate investors against risky strategies such as "flipping," and relying solely on the appreciation of properties with low or no "cash flow."

So, what does this famous investor like now?

He is looking at the commodity markets, specifically the precious metals: gold and silver. Yet gold and silver are investments that are still out of favor with most of the investing public.

Why You Should Be Investing in Silver Just Like Robert Kiyosaki

1. For the average investor, silver can be an effective means of diversifying investment assets and preserving wealth against the ravages of inflation. Although the value of silver may vary, it has an intrinsic value that is immutable and permanent. Accordingly, many experts suggest that investors should include it among their investment assets.

2. The commodity markets, specifically the silver market, have outperformed both the stock and bond markets recently and, I believe, will continue to do so. Since 2000 if you would have invested your currency into gold you would have seen a 190% return on your money. If you would have invested your money into silver you would have seen a 240% return on your money. This is an important shift to recognize, yet very few individual investors are aware that this fundamental change in the marketplace has taken.<

3. One of the most incredible truths about silver is that up until now, demand has outstripped supply for fifteen straight years. Annual silver supply deficits have run as high as 200 million ounces in boom years, and as low as 70 million ounces in years of recession like we are in now. It is important to realize that even in years of decreased silver demand the mining supply on an annual basis did NOT meet demand. There is nothing more bullish for a commodity than such a deficit condition.