Friday , 30 September 2016


Silver Will See Much Greater % Price Appreciation Than Gold – Here’s Why

The price of silver is going to go much, much higher – much higher – over the next decade [relative to gold according to Jim Rogers and I concur. Below are 5 solid reasons why I believe that is the case.]

By Ed Liston. The original article* was posted on SeekingAlpha.com under the title Gold Or Silver: Which Is Better For Investors?.

…[Below are a number of] factors to consider:

1. Growing Industrial Demand: …silver is an industrially useful metal. It does have a volume of industry demand. It is used in plastic design, batteries, mirror coatings, electronics components, medical instruments, water purifiers, solar panels, to say nothing of making silver bullets to fight against the impending werewolf invasion.

According to a Kitco report the amount of silver used for industrial purposes is forecast to rise to 665.9 million troy ounces by 2015, which would be a 36% increase from the 487 million used in 2010, according to a report from the Silver Institute.

The report identifies 11 still-new applications for silver, ranging from food packaging to radio identification tags to auto catalysts, which collectively could exceed 40 million ounces of industrial demand by 2015, said the Silver Institute.

The report also said that stronger silver industrial demand in the U.S. and Asia will be a key factor driving growth through 2015, with healthy developing-country demand especially in markets such as China and India.

Since silver has a substitution problem just like any precious metal – its available quantity is not unlimited – industry demand will put a premium on silver, unlike gold which has no industry demand worth noting and is priced on pure, ultimate human hype.

To put the industrial demand of silver in perspective, note that although most people think its primary usage is in producing cheap jewelry and cheaper coins, that actually accounts for only 30% of silver demand [with] the remaining demand coming from industrial use… As newer and broader applications of silver find their way into technology, that demand will only go upwards….

2. Greater Upside Potential: …Central banks do not own silver, they own gold, so silver is more volatile. When markets for silver/gold go down, silver generally goes more down than gold. However, for the same reason, when inflations occur or with rising industrial demand, silver, since it is more volatile, has potentially more short term upside than gold so if you are a risk-taker at heart, silver is a good choice. Its highs are very high, its lows are very low. If you can buy at a low and sell at a high, you win a lot. Gold, on the other hand, seems more stable, and it is an excellent hedge in troubled times.

3. Lesser Supply: …In the last ten thousand years, huge amounts of both gold and silver have been mined [but] almost all of the gold is still in the market in a purchasable condition [while that is not the case with] silver…Silver’s industrial refuse (silver scrap) is not usually recycled because costs are high compared to the price of the silver recovered. This makes silver more scarce than gold, and that scarcity is increasing…

4. Depressed Silver/Gold Ratio: …The so-called silver/gold ratio has historically… been roughly 15:1; that is, one ounce of gold trades for 15 ounces of silver. Right now, however, that ratio is approx. 71:1; in other words, gold is trading at almost 5 times the price it used to trade before with respect to silver’s price. [Interestingly], however, mints report that they sell almost equal dollar amounts of gold and silver which means that they sell 71 times more silver than gold. [As such, given that] demand for silver is larger by a big margin and that silver is undervalued right now from a historical perspective, [should the silver/gold ratio strengthen]…even by a small factor, silver’s price would increase substantially from current levels….

5. Less Potential Counterfeiting: …Millions can be made by counterfeiting gold but since silver is much less costly than gold, counterfeiting silver is not lucrative. Hence, when you buy silver, there is less risk of getting counterfeit bars and coins than there is for gold.

Caveats:

Silver, since it is more volatile, requires you to have a more cautious approach than gold does. You’d better be a trader rather than an investor if you are buying silver. It can fluctuate by more than 70% in a year, so if you are a long term buy-and-hold investor, silver is not for you.

[The above being said, however,]
  • silver generally outperforms gold during growth phases of the market when there is more demand for industrial silver and,
  • when markets are depressed, demand from the industry scales down, and gold outperforms silver.
[The above article is presented by  Lorimer Wilson, editor of  www.munKNEE.com and www.FinancialArticleSummariesToday.com and the FREE Market Intelligence Report newsletter (sample hereregister here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. This paragraph must be included in any article re-posting to avoid copyright infringement.]

*Original Source: http://seekingalpha.com/article/985701-gold-or-silver-which-is-better-for-investors? (© 2013 Seeking Alpha)

If you liked this article then “Follow the munKNEE” & get each new post via

Related Articles:

1. Silver Is A Better Choice Than Gold! Here’s Why

We are at the beginning of a major shift out of paper assets into real assets and the more I studied the merits of owning gold and silver the more I realized that silver was the smart decision. Let me explain. Read More »

2. Silver:Gold Ratio Suggests +$200/ozt Quite Plausible! Here’s Why

Given the fact that a) the historical movement of silver is 90 – 98% correlated withgold-silver gold, b) silver is currently greatly undervalued relative to its average long-term historical relationship with gold and c) many analysts predict a parabolic rise in the price of gold over the next 5 years it is realistic to expect that silver will also escalate dramatically in price – but by how much? This article applies the historical silver to gold ratios to come up with a range of prices based on specific price levels for gold being reached. Read More »

3. Silver Presents A “Golden” Investment Opportunity – Here’s Why

Silver has a reputation for being gold’s less desirable sister, but make no mistake, silver may still be a golden opportunity to invest in. Silver’s use is already very prevalent in the photography, consumer electronics, medical, and high tech industries and a major consumer of silver in the future will be the green technology sector in products such as solar cells and batteries. Read More »

4. Availability Of, and Demand For, Silver vs. Gold Suggests MUCH Higher Future Prices for Silver

The current availability ratio of physical silver to gold for investment purposes is approximately 3:1. So, why is it that investors are allocating their dollars to silver at a much higher ratio? What is it that these “smart” investors understand? Let’s have a look at the numbers and see if it’s time for investors to do as a wise man once said and “follow the money.”

5. Silver: 5 Forces That Should Help Polish Off the Tarnish & Propel It Higher

The price of silver has been corroding for much of the past year but a variety of signals in recent months suggest that it may not be long before silver begins to shine once again. [This article identifies 5 such signals and/or reasons why that may well be the case.]

6. 20 Reasons Why a Significant % of Your Investment Portfolio Should Be In Silver

I believe that silver could go to $60 per troy ounce by the end of 2014….I also believe silver will be the best single investment of this decade. The following article is focused on why I think you should seriously consider having a significant percentage of your investment portfolio in silver.

7. Why You Should Now Invest in Silver vs. Gold

The price of silver is going to go much, much higher – much higher – over the next decade [relative to gold according to Jim Rogers and I concur. Below are 5 solid reasons why I believe that is the case.]

8. I’m A Crazy Silver Bug…Why Aren’t You?!!

It’s true that there are “NO SURE THINGS” in life…but an investment in SILVER comes DARN CLOSE! Yes, you’ll have to ride the tidal wave of price manipulation but when the waves die down you will fully appreciate the power and value of SILVER. Let me explain.

9. Silver: Another Decade of 500% Returns is Very Possible – Here’s Why

Silver has given returns of 584% in the last ten years and this article discusses the reasons for believing that silver can produce another decade of over 500% returns.

10. Silver: The Price Could Easily Double or Triple – Here’s Why

Silver is selling at less than half its 2011 high. It is being ignored more than gold. It has explosive fundamentals. This article assesses silver’s potential by looking at the big-picture forces that could impact silver over the next several years – and point to a possible runaway price scenario. Read More »

11. The Case For $5,000 Silver – Yes, $5,000 Silver

If the price of silver were based directly on the real physical silver market, silver’s price should be at $5,000 an ounce. I’m not saying the price of silver will reach $5,000 an ounce; I’m just saying that the actual PHYSICAL silver spot price is not only extremely undervalued, but that it is an illusion compared to the real value of an ounce of physical silver, since it is totally disconnected from reality. [Let me explain further.] Read More »

12. What Do Silver:Gold Ratio, Volatility & “Bear’s Eye View” Analyses Suggest for the Future Price of Silver?

I believe that the Silver to Gold Ratio has peaked, making silver a compelling bargain relative to gold. From today’s vantage point it is difficult believing that the price of silver could ever equal or exceed the price of gold but, when one considers the possibilities, there are many good reasons to accumulate as much silver as possible at today’s prices. Read More »

13. Silver Is THE “Achilles Heel” Of the Entire Financial System

In my opinion the “final financial shot’ which leads to live financial fire (collapse) will be in either the gold or silver pits of the COMEX or, ultimately, both. Why? Because, at $20 per silver ounce, it would take only $1.2 billion to crack that market open like a watermelon; because, for a pittance of money in today’s world, “trust” in the entire financial system of the West can be shattered. Some will say “big deal” or “who cares?” but it is a big deal and YOU should care! Read More »

14. 4 Unique Characteristics Should Propel Silver Skyward

With the likes of Ray Dalio and billionaire George Soros placing big bets on a recovery in precious metals now is likely the time for investors to take the plunge. The key question remains, however, which precious metal? My preference is silver. Here’s why. Read More »

15. Silver Will Go To $100+ In Next Few Years – Here’s Why

I expect that silver will rally well over $100 in the next few years because most, if not all of the “favorable”, and few or none of the “unfavorable” items listed in this article, will occur. Read More »