Take Advantage Of Under Priced Silver Right Now

Silver is one of the most under priced physical assets you can buy right now. Silver was once the standard for currency across the world and today it’s both an important industrial commodity and an investment asset. Silver bars and silver coins may even be better in your portfolio than gold, given what a great deal it is to buy silver right now.

Investing in silver is standard practice for investors diversifying their portfolios to keep assets safe. Silver and gold both keep up with inflation, meaning over the long-term, their prices appreciate as currencies depreciate. That’s the reason why so many investors are turning to silver as a way to diversify their portfolio or invest in their RRSPs. Silver is a safe bet in the long run, but if you buy silver when it’s undervalued, your investments will realize major gains. Because it maintains value over time, the dollar price of silver is not necessarily the best way to tell whether silver is undervalued or not.

The gold-silver ratio is a better tool for determining when silver is undervalued. For most of the last 50 years, the gold-silver ratio has averaged around 65, but silver’s extreme volatility means that it’s ranged anywhere from under 30 to over 80. Following the trends, a low ratio means silver is overvalued and it’s a great time to sell or trade in for gold (gold dealers like Silver Gold Bull allow you to make direct trades, exchanging gold bars or gold coins for silver bars or silver coins). At the moment, the ratio fluctuates between 75 and 80, meaning it’s a great time to buy silver.

Another metric to evaluate the price of silver is the silver to S&P 500 ratio, comparing silver prices to stock market performance. This ratio peaked at 5 during the 1980s commodities super cycle and 3.5 in 2011, while it reached a low of 0.4 in 1999, at the end of a silver bear market. Falling stock markets can also account for a higher ratio, but when the ratio is low, you’re looking at a good deal on silver.

If you want to buy silver but you want to make sure you’re getting a good deal, just check out prices with a gold dealer like Silver Gold Bull and divide the gold price by the silver price. Silver is in a unique position as both a widely-used industrial material and an investment asset. There is a long list of industrial uses for silver thanks to its chemical properties and many of these uses are non-recyclable. There is a finite and limited amount of silver in the world. Silver deposits are becoming harder to find and mining companies are scaling back production because of diminishing returns. Silver has actually become rarer on Earth than gold and prices will eventually reflect that reality. Undervalued silver is an investment opportunity that could pay off with high returns. Buy silver today while you still can.

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