I like silver more than gold because it is much cheaper than gold and it has the potential to give me much higher returns as compared to gold. The good thing is that both these markets are positively correlated. In certain instances, when gold prices have doubled, silver prices have tripled, quadrupled and in some cases even outperformed gold by a factor of six to one.
Since ancient times, silver has been considered as a form of money and as a store of wealth. With the continuing global economic uncertainty, appeal for silver as a precious metal is rapidly increasing along with gold. Unlike gold that has a few industrial applications, silver has many industrial applications. So, with the global economy out of recession, demand for silver is going to skyrocket.
Right now, silver is selling around $18 per ounce. But experts are predicting it’s price to jump as high as $100 per ounce. There is a soaring demand for the Silver Exchange Traded Funds. More and more Sliver ETFs are being launched in US and Australia. The world’s largest Silver ETF is the iShares Silver Trust (NYSE:SLV). You don’t need to own the white metal physically. You can buy the white metal in the form of a security on some of the world’s major stock exchanges.
The simplest and the most direct way is to own the white metal physically. The while metal is usually sold in the form of bars and coins.
This is the least direct of all the investments as companies that mine the white metal also mine other metals that can be affect the stock prices of that company. Plus host of other issues like the management issues can affect the stock prices. But investing in the shares of these silver mining companies can give you a good capital gain.
So whatever form of investment you decide, you should keep this in mind that the last bull market in gold and silver has lasted for about a decade. It started in early 1970s and ended in 1980. Those savvy investors who had invested in these precious metals especially the white metals made a windfall gain. This time, the white metal is again poised to skyrocket. This is the best time to invest in silver. Right now the price of silver is hovering around $18 per ounce but within the next six months, it can go as high as $100 per ounce!