Saturday, September 21, 2013

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!

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