For more than 9 years ago, the American currency has been gradually faltering in value due to the reserve bank generating so much cash. The worry about that is the US is slowly becoming bankrupt by creating more and more cash which saturates the economy and drives down the spending power. You see, cash is just representational for a given value that might be attached to a material thing.
For instance, general shopping around the neighbourhood I notice everything costs a lot more than it used to, maybe even just 6 months before? To observe first hand experience of the dollar losing value, just look at the increase in the prices of silver and gold, along with other precious goods. Gold, at this time, has increased 5 fold in price today (early 2011) since the year 2001. Gold was trading at around USD $250 per ounce at that time, but is now over $1,400 per ounce. Similarly, prices of silver have gone from around $5 per ounce in 2001, to $28 today.
In April 2007 Silver just broke through the $14/ounce mark but in 4 years doubled in price. It seems both gold as well as silver have escalated to all time highs and it would seem as though all commodity prices have increased amazingly. In other words, to look at this from another point of view, the US dollar is losing purchasing power at such a worrying rate that the government will run it's deficit, I fear, into a level that could be insurmountable for a very long time to come. The US government would have to make eminently drastic cuts in the nation's budget spending on security, military services, essential health, medical and education services and so on.
All this brings me to my next point - You're probably thinking - "What can I do to hedge against inflation??"
Well, I'm glad you asked - When looking at the prices of silver, I want you to know -
How To Acquire Silver Below Spot Today??
I currently buy silver eagle coins each month and have the luxury of lowering what prices of silver I pay almost all the time. This is because I became part of a system where I can leverage my buying power, thus significantly reducing my silver buying cost. Imagine if you could purchase silver for $15, $12 or even $10 per ounce? Well, that's what I'm doing right now. And the more excited I get about this the more it grows. The system is a silver buying model which allows you to adapt referrals to your purchases, whereby receiving significant discounts off the prices of silver and free silver, significantly reducing your prices of silver per ounce. The more silver your referrals buy, the more free silver you get. Now it does require you to buy your initial allotments of silver above spot price, however with just 2 or more referrals you can be back in the range of paying below the spot price for uncirculated 1oz pure minted American eagle bullion coins. When I discovered this business I became so excited.
The greatest safety net from inflation in your long term savings goals should be to acquire silver. The prices of silver in today's market allow the "average Joe" to to get his foot in the door because of silver's affordability per ounce. Silver also has a bigger demand in the electronics world with companies which construct computers, monitors and mobile cellphones and so on. The need for silver is at all time highs, and will be well into the future - There is also a whole lot less silver in the world than gold. Then why are the prices of silver lower today proportionally, than gold 10 years ago? I wish I knew why, however my surge in the near future. It can't maintain it's unusual lows it has been in for a while.
Prices of silver today I'm sure will seem like an absolute bargain in just a couple of years from now.
Julian is an enthusiast in collecting silver coins within an effective affiliate business model. The prices of silver are currently undervalued compared with the gold market. Learn how to buy your silver well below spot price each month, and earn a large income immediately by doing it. Get my FREE eBook "How To Buy Silver Below Spot Price" below:
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