Thursday, November 01, 2012

Gold or Silver

Gold or Silver

Historically, the ratio of gold to silver is 16 times to 1. This means, if gold per ounce is USD1700, then silver should worth US$106.25 per ounce.

A quick check at the prices reveal that gold is now selling at around US$1720/oz whereas silver is traded at around US$32/oz. So the ratio now is 53.75. This disparity is not logical.

Silver has hundreds of uses, maybe a thousand. It can kill bacteria, and is used in water filters. Your computers, smart phones, i-pads and other ICT products all use silver. In fact what gold can do, silver can do. But what silver can do, gold may not be suitable to do it.

The price of gold is about to explode, come Jan 01, 2013, If this happen as predicted by some experts, the price of silver will shoot up as well.

Silver is so low now because some large banks are controlling the price. Once the government step in and changes the rules, you will see silver shoot up easily to US$100/oz.

What is the best way to invest in silver? My opinion is to buy stocks whose core business is mining silver or involving in silver. If this is not within your reach, you can open a gold account or a silver a/c at a local bank.

Should you be interested in silver stocks listed at the NYSE, Click here.