Silver

The price of silver has risen along with the rest of the major precious metals to great heights in recent months. Because it is often lumped together with gold and platinum, silver is often purchased by investors interested in long-term wealth protection. Yet silver has a number of unique characteristics that significantly differentiate it from these metals.

While gold and platinum are extremely useful in electronics and industrial processes, their comparatively high price ensures that their use in anything far removed from jewelry will be quite limited. Silver, on the other hand, is a working man's precious metal. Because silver is used industrially and consumed on a massive scale, silver's price is somewhat insulated from speculative nose-dives.

Many of the same companies that mine gold and other sundry minerals are the world's primary producers of silver. While these companies provide an opportunity to make money on a continuing silver rush, buying the commodity directly represents a better opportunity to make a so-called "pure play".

One potential benefit of purchasing silver directly is that once an investor has the silver in his or her hands, the government effectively loses track of the metal. Unscrupulous investors can then directly sell their silver at any time without paying taxes. If undertaken on too large a scale, this scheme is sure to be revealed. But juicing returns by a minimum of 15% may be worth the risk to some. Of course, the eventual costs of dealing with the IRS will eventually outweigh the benefits in most circumstances.