Silver Will Continue To Appreciate And Protect Your Capital

Silver- The Investment Of The Decade

With the economy still in turmoil and not recovering the way the US government keeps screaming at us, now is the time to talk with your family about working out where to part any extra income, or where to invest your money for the future.


With the economy still in turmoil and not recovering the way the US government keeps screaming at us, now is the time to talk with your family about working out where to part any extra income, or where to invest your money for the future. Regardless of the run up on commodities recently, there is a strong call for silver at the moment to be one of the strongest investments this decade. Even though it’s at a new high today, there are still calls for the price of silver to go a lot higher.

Instead of viewing myths and pundits predictions about silver you need to base current silver price projections on the fundamentals. You can look at plenty of data points that will stick out and show you where silver is likely headed. Much of the new silver optimism can be traced back to the new investments taking place. The silver ETF’s and the funds and just a general demand for people to replace their currencies with silver.

Last year industrial production was up 18%, there are all sorts of new uses for silver such as solar panels, in the health care business, in bandaging and clothing and various other uses such as antibacterial devices. So the industrial demand has been quite surprising. But the real demand has been from the investment side.

In terms of the price of silver on the charts. There’s an argument for secular silver. The secular argument is historically silver has traded in a ratio to gold of 16:1. So in other words, if the cost of gold was $1600 an ounce, typically silver should trade at $100 dollars. But that ratio has not been effective in the last 20 to 30 years.

The last time it traded in that range was in 1980 when it was arranged for the price of silver to go up to $50 and ounce. This ratio is coming down but today it is at 41 and has been as high as about 81. But we are likely to see it trade at the previous 16:1 ratio again, maybe even within the next 3 to 5 years.

Right now there’s a silver shortage. That is sending the prices up sky high. There’s a tightness in physical silver and that indicates a short term supply problem for some time to come. In the future do not be surprised to see silver reach as high as $100 an ounce.