Precious metals remain an asset class that is undervalued but also happens to be a great investment opportunity (with cyclical sell-offs that present an excellent opportunity for investors to buy silver). Silver was the only commodity that appears to be trading lower than its 1980 high. Currently, the price is 50% below the peak price it reached in 1980 (using today’s devalued US dollar). It is also less than 50% below its 2011 peak price.
With rising inflation, global money printing due to quantitative easing, unsustainable fiscal expansion, as well as a zero percent interest rate policy that has been in place for over 10 years, it is surprising that there is a “real commodity” like silver that has been valued at half what it sold for 41 years ago. Silver is a truly dynamic precious that is more than just an investment opportunity but it is also one of the rarest metals on the periodic table, making it the most reflective metal on the planet.
Silver has unique and well-documented antimicrobial properties and been shown to be effective at killing bacteria and some viruses. Silver ions have this antimicrobial effect. No other metal in the world has the same properties.
Silver is a very electrical conductive element followed by Copper and then Gold. Silver is the best conductor because as an element it has electrons that are freer to move than those of other elements. This makes it more conductivity of electricity and heat than any other element.
Precious metals are thought to be a little undervalued asset class instead of the exceptional attractive investment opportunity that they are. This is especially true of silver. The short-term sell-offs present anyone with a great opportunity to buy silver. There are other important precious metals besides gold that you can, a closer more popular metal happens to be silver.
These qualities are uniquely critical when you consider the rising industrial demand for Silver, especially when the industrial mining production has been falling since 2016.
The Gold to Silver-Ratio for Mine Production stands at around 77 to1. For every ounce of gold that is mined there are 77 ounces of silver to be mined.
The price is of gold is currently at US$1,801/oz. Gold to US$25.04 per oz. of Silver which works out to: Gold-Silver-Ratio of 71.92. The gold-silver ratio is more than a numerical statement, many investors follow it to determine how much gold or silver they should allocate to their investment portfolio. The ratio is constantly changing. It varies over time in different geographical areas. When one metal is believed to be undervalued compared to another, investors use the ratio to determine where to invest their money. Many investors tend to focus on a certain ratio, but if they hold a position for too long, they can miss out on an excellent investment opportunity. Whilst it is important to read such indicators, don’t let yourself be caught in price charts and diagrams and price movements without understanding why these prices are moving the way they are moving.
