What Should You Be Buying? Gold... Silver...
Ever wonder if you should be buying silver? gold? Seems everyone is purchasing gold and silver these days. But, can anyone really say which is better? If you have the financial means to be actively purchasing both - our opinion that is best. However, if you want to limit your bullion purchases, you may want to read what Jason Hommel has to say about silver in the article below.
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Silver Stock Report
by Jason Hommel, November 19th, 2010
Which is better, gold or silver?
I like silver better because it's being consumed by industry. It's a much
smaller market, by far, and thus, will move up far more than gold.
If the silver to gold ratio returns to the historic value ratio of 15 oz.
of silver for every 1 oz. of gold, you'd make far more on silver, since the current ratio is about 53:1.
But I think silver might exceed the historic ratio, since that ratio was
last seen nearly 100 years ago, except for briefly in 1980.
Over the last 100 years, two major things have happened to silver. First,
silver was demonetized, meaning, no nations on earth are using silver as
money, or as a circulating currency today. Second, since the age of
electronics began at the end of WWII, developed nations have been
consuming about 6/10ths of an oz. of silver per person, per year, which
has consumed most of the silver ever mined in history.
In contrast, only 5% of the annual gold market production is consumed by
industry.
So if the silver to gold ratio just returns to historic norms, you'd make
over 3 times as much in silver than in gold.
But silver should dramatically out-perform gold as the bull market in
precious metals continues.
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After reading this article it would seem that silver is the proverbial 'dark horse' of the metals market and worth looking into.
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