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Even through our questionably biased media where they have been downplaying the benefits of gold investment strategies and the rise of gold prices, you still hear a mumbling of its epic rise from $256 to $1385, a 441% gain in less than ten years.
But did you know that Silver has seen a 625% gain from $4 to $29 within the same time period?
Where many believe Gold Silver prices are still of tremendous value with their biggest rise ahead, history and some basic examining of the number's shows us Silver to be the best value for a number of reasons, and an affordable option for many to get into the game and prosper heavily.
Right now silver prices per ounce are in the $30 range.
Historical silver prices compared to historical gold prices trade at a ratio of approximately 16 to 1. Meaning that one ounce of gold would buy 16 ounces of silver.
Now, let's take a look at where gold and silver prices reside now, as well as some other factors which add more intrinsic value to the idea of investing in silver, the Poor Man's Gold.
As I write this post, the current gold price is at $1383 per ounce and the current silver price is at $29 per ounce. This means that 1 ounce of gold can buy you over 47 ounces of silver, or a 47 to 1 ratio...way above historical numbers.
Now, if things were to adjust right now to the 16 to 1 ratio which would see silver at $86 per ounce, although you were to invest at the current silver price at the $29 per ounce rate, than you would stand to make a 200% profit.
...And while we are currently looking at just the inception of possibly some of the highest inflationary rates ever known, even conservative estimates see gold prices reaching a $2000 per ounce price, which at a 16 to 1 ratio would see silver reaching a price of $125 per ounce, a %331 gain from current silver prices.
Another factor is based upon silver being a hedge against inflation, thus adding to its value.
I would like to share with you a sentiment by some that silver is not as good of a hedge against inflation due to the fact that it is an industrial metal. Although as you read, I think you will see why many others believe this reason alone provides even more value to silver as a hedge and investment opportunity.
A strong industrial demand; as mentioned earlier some believe this works against its safety to hedge against inflation, while others believe it supports it...each affecting its investment value.
Where all metals serve certain industrial needs, silver in fact has a higher and broader demand which many believe could only increase its value. Keep in mind the resiliency of many of the industries mentioned in challenging economic times such as green industries and lower price point categories, as well as those industries which are increasingly susceptible to attack such as housing and automotive.
Silver has uses in industries such as: photography, batteries, cd's, plasma TV's, solar technology, water purification devices and more.
Gold is more of a singular demand being used in electronics, copper used for housing and construction, and platinum used in the automotive industries.
Possible result: more uses = more needs = more value
And yes, where silver has also historically shown more volatility, history also shows that it has the ability to spring back where it is valued to be, and at the current low value prices, silver might just provide the perfect way for the average person to invest into the metals game.
