Why silver?....why not gold?
I've had more than one person suggest that I should sell off the silver I'm collecting and buy gold. I'll explain why I would never consider doing that.
Back when silver was used in coinage....the late years...silver was about a dollar an ounce, while gold was 35 dollars per ounce. Those prices stood stagnant for years.
If you used that same 35 to 1 ratio today, with silver at 11.00 an ounce, then gold should be at 385.00 per ounce. Gold is at $585.00 per ounce today. I think that silver is undervalued and will make higher percentage gains than gold. Take the price of gold and divide it by 35....and silver should be somewhere in the vicinity of 16.75 an ounce. The US government hoards of silver are depleted. In the past, the US gov't would release billions of ounces of silver onto the market and that would suppress silver prices. Since 1990, the world's use of silver has exceeded annual production every year.
If it's all supply and demand.....over the long haul, silver could double in value (I feel) long before gold will perform the same feat.
This is just my own opinion, based on my own observations. I am not qualified to give investment advice, but my own speculation in silver is based on my personal belief that silver is undervalued. I'd read reference to someone suggesting that silver could reach 125.00 per ounce in 4-5 years...but could not find the article. I think that might be a bit far fetched, but to say that it could double in 10-15 years doesn't sound all that impossible to me.
What do you think?
Wyatt
Last edited by Wyatt Earp; 09-14-2006 at 10:33 AM.
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09-14-2006, 10:27 AM
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