Silver as an investment

Why Silver and not Gold?

I have been asked this question a few times and asked myself the same question too.  What is so special about Silver?  Many analysts have reasons for and against and I suggest you do research for yourself in order to come to a conclusion that satisfies you but I will give you why I am am more of a Silver advocate instead of Gold.

1)  Silver is consumed.

Silver is being consumed by electronics, CDs, mirrors, photography, and during the process of making plastics among others.  Gold is used in some areas including electronics but silver is a better conductor.

2) Smaller supply.

There is roughly 8 Billion Ounces [1][2][3] [4] of Gold. There is about 1 Billion Ounces [1][2][3] of Silver. (by the way, ref #2 is a great study). No one knows for sure but 8:1 ratio of GOLD:SILVER supply would indicate that the white metal is extremely undervalued.

3) Potential.

Because of the current price (about $27) at the moment, there is a huge upside potential. The GOLD:SILVER price ratio is currently 50:1. Even if it got closer to 8:1 and went 30:1 price ratio. It still looks like $45.13. Still pretty good gains!

 

You can see the places I buy from here.

One Trackback

  • […] This clips shows you that _some_ people are waking up to owning physical silver. However, notice how BK was laughed at and he didn’t even tell people to buy it. He just simply said that the ‘trade isn’t over.’ The majority of people still have no clue how fiat currency is simply created from nothing and that silver and gold are _REAL_ money. The interesting thing to note from this is the comparison of the ETFs owning the same percentage as the Hunt brothers did in 80s. We know that there are many more factors in the fundamentals of the physical silver market, some of which I detailed here. […]

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