Why I choose to invest in silver
Silver is my investment.
Over the years there have been alot of discussions and articles written on which metal is the best investment, gold or silver?
I choose silver for one reason, and one reason only. Gold to silver ratio.
The ratio is a very important indicator on which metal is over valued or under valued.
In 1792 the gold to silver ratio was fixed by law in the United states at 15:1. This means it would take 15 oz of silver to buy 1 oz of gold. If this was was still true in current time it would have silvers value at $83.00 an oz.
The silver to gold ratio didn't really get out of line with the 15:1 untill the late 19th century, during the 20th century the average silver to gold ratio was at 47:1.
The highest gold to silver ratio on record was back in 1991 when the ratio hit 100:1. In 2011 it hit 32:1.
Studies show that the current gold to silver ratio should be between 17:1-20:1. Even at the high side of 20:1 that would put silver price at $63. Oz.
Now many people would argue that the ratio should be the same as the mined ratio, which is currently 10:1 so for every 10oz of silver mined there is only 1 oz of gold mined.
I believe we will see this ratio come back in line, I do not see 10:1 but 20:1 would be my guess. With the rising industrial use of silver, this will put pressure on the supply, which is already heading into a deficit.
So my recomendation to you is buy silver untill the ratio proves that it is time to buy gold.
I am not a financial advisor, these are just my opinions based on facts.
Keep stacking my friends.
Follow me @raybrockman
Upvotes and resteems are appreciated.
Because of the industrial use of silver, the ratio may invert. How many ounces of gold does it take to buy an ounce of silver?
Barring some new technology that requires silver specifically I have to push back just a bit. On an industrial basis nearly anything that requires silver can be done with gold as well. I think this puts a natural cap on silver at a 1:1 ratio with gold on a long term basis. That is not to say that a transitory condition of higher priced silver could exist for a short time. Especially considering the worlds above ground stockpiles of silver are virtually non-existent and above ground gold supplies are much greater. On the mining side silver still comes out of the ground at a roughly 9:1 ratio to gold.
You caught me! I am expecting new technology (especially in medicine) that will up the demand. I could be wrong, but Silver is my choice.
Agreed with the silver uses in medicine. Expanding all the time. Personally I like both. I try to accumulate at a 100:1 ratio silver to gold. Stack on Doc. Take care.
I like the way you are thinking DOC. Thanks for the visit my friend.
As they say Silver is Poor Man's Gold! But, As You mentioned in this post and many others have Commented, Silver has Many more uses then Gold will ever have. Look no further than the Silver Junior Miners reports. Silver is Drying up and it won't coming out of the ground like it once did! Great Post @raybrockman
Or the future rich man's silver. Thanks for the comment my friend. Keep stacking.
Hey great post my friend and I agree Silver has the greatest potential to increase. Stack high and wide my friend. Resteemed!
Thanks for the resteem buddy!
Oh hey no problem I just hope it helps you out. Not sure what resteeming actually does besides put your Blog over on my Blog space. But if it helps both of us out than hey I am all for it.
I'm also a little curious what restreeming does...
@pocketechange
At the very least it gets the shared content in front of a new set of followers for more overall views...
Yep the ratio is the reason I have bought mainly silver. Gold is more convenient to store though (but only at present) as its more valuable per ounce.
Tha ks for the visit, I believe you are correct, "only at present" keep stacking my friend.
Physical assets really appeal to me and silver has been my choice for several years now. I also believe that the price of silver is manipulated and has been suppresed for some time now.
Agree, manipulated hard and long, the time is coming when they will loose there grip on the manipulation. Keep stacking my friend.
I just sit back and wait for the time when everyone will be saying do you remember when you could buy silver for under $20. I prefer silver more because it's shiny. Cheers my friend.
That time will come, and they will say I wish I had bought silver when it was $20.00. Thanks for the comment, keep stacking my friend.
Silver has been my investment choice since I started to see through the veil of deception 20+ years ago. A close confidant of mine had his eyes on silver and so did I and we were fortunate to buy back when silver was still cheap... single digits at least. I do not have nearly the amount I would like but that is the case with all good investments. I do not have nearly the amount of crypto's that I would like either but everything is a work in progress! Great little post and thanks for sharing your opinion on the precious metals! They are the rock we stand on!
Peace,
The Last Sage
Indeed the rock we stand on. There is truth to that!
Wow, silver in single digits, that has to make you feel good. I agree it is diffently the rock. Thanks for the visit and comment my friend. Keep stacking.
It's quite possible that Silver my be worth more than Gold some day...
@pocketechange
Great post. My husband was adament about investing in some silver a few years ago. Lately, it's been up and down, but I'm still glad we invested in something that you can actually put in your hands.
Thanks for the visit and comment. Its nice to beable to hold silver in your hands.
I invest in both gold and silver, but I agree with you that silver has a larger upside potential based on the ratio. It is no secret the prices have been artificially beaten down with their phony paper markets, but they can't keep them down forever, and we can all take advantage of these prices to keep stacking! Thanks for the post and following!
Thanks followed back. They will lose the grip on the manipulation some time and thats when the excitement will start. Thanks forbthe comment and visit