Silver played a crucial role in shaping the world economy throughout history, and according to one expert, it remains a vital part of the story.
Despite having lost its throne as the main unit of currency, and being often overshadowed by its sister metal gold, investors should still look to silver for protection.
“There wasn’t enough gold to be used by most people, so silver for thousands of years was the main medium of exchange […] silver had been the main currency of the world for thousands of years,” said NYU Finance and Economics professor William Silber in a recent interview during his book tour.
He released a book earlier this year entitled “The Story of Silver: How the White Metal Shaped America and the Modern World” in which he analyzes how silver has shaped our history, , and society.
More importantly though, he highlighted silver’s role in forging the world’s economy and shed some light into how its role is evolving with time.
“The chances of silver returning as backing to the currency is relatively small. It’s not zero; it’s relatively small,” he said in his interview.
“I say it’s relatively small because the central banks of the world have been doing a pretty good job of controlling inflation. But there’s always a chance that we have a problem.”
Although most people look to preserve their wealth with gold, Silber says silver may be the metal to look at.
“Silver is much more volatile [than gold], and that volatility serves you well if you have some silver as portfolio insurance,” he said.
He added that investors can do “better” with silver than with gold in times of financial instability, “because silver responds much more quickly and much more strongly when everything else collapses.”
Published at Tue, 21 May 2019 19:02:25 +0000