Wednesday, September 25, 2013

Gold Price $2000 "Inside a Year"

Here is an insteresting artical about gold and silver form Charles Oliver of Sprott Asset Management

"Charles Oliver: It hasn't changed. Over the next five years, I expect the silver price will outperform the gold price. During the last 2,000 years, the silver/gold ratio was at 16:1 about 90% of the time. That means that if gold is $1600 per ounce, which isn't far away, the silver price would likely be $100 per ounce. The current silver price would have to increase more than fourfold to get to that historic norm. The last time that it reached the norm was in 1980 when the silver price reached $50 per ounce and the gold price was $850 per ounce, or a ratio of 17:1."

Read the full artical below...

http://goldnews.bullionvault.com/gold-price-092420132


Saturday, September 21, 2013

US Debt - Visualized in physical $100 bills

This may surprise you...

I'm posting this because even though it's not directly related to silver, the implications are important and very relevant. I am someone who tends to visualize things and this graphic was nothing short of WOW! http://demonocracy.info/infographics/usa/food_stamps/food_stamp_nation-SNAP.html

This is WHY you should invest in silver...

There are a couple of fundamental reasons to consider investing in silver. Firstly it's price performance. Yes, the price is low at the moment (I'll get to that later), but all in all the cost of silver is gradually increasing, especially if you take inflation into account. But it is a commodity and like all commodities it is being manipulated . However, as an investment it is more durable. Depending on how you buy and sell it, your returns could make you a small fortune, if not a big one.

Secondly, silver is rare and it is under valued. The historical cumulative Gold to Silver production ratio is 1:10.7. 
The price ratio of Silver to Gold is currently around 1:50. So it should be about 5 times more expensive than it is now. Look at the link below:

Ok but there is another hidden reason to buy silver... As you know, mining is a very energy intensive operation. With the price of energy and oil going up, the cost of production will follow! THATS WHY YOU SHOULD INVEST. 

Now about the low price of silver. That only works to your advantage. And because the price is more volatile than gold, you can trade it. There is another point that I would like to leave you with. If the price of silver is rising.  Investing in silver could be seen as a form of "compounding". Here is a clip about "compounding". ENJOY!