…A collapse of the U.S. dollar is inevitable. The U.S. Dollar Index has been bouncing off of four-year lows for the past several weeks but this cannot last much longer with a global trade war and U.S. equity correction looming….The U.S. dollar and fiat currencies are in trouble, hinting that gold and silver prices could again go screaming higher…[as] the two still generally trade inverse to each other and, while gold is perhaps the safest way to hedge against a falling dollar, the most profitable option is silver.
The original article has been edited here for length (…) and clarity ([ ]) to provide a fast & easy read
…Simply [put]…silver has more room to grow. [Why? Because,] during the big precious metal rally of 2011, the price of gold reached over $1,900 a [troy] ounce, about 50% higher than current prices ranging between $1,325 and $1,350 a [troy] ounce. At the same time, silver traded for $50 a [troy] ounce that’s more than 200% higher than silver’s current $16.50 price…
There’s a progression in price increases (and investor interest) that precious metals always seem to follow during bull markets and it always starts with gold. Gold is the very first precious metal investors tend to buy in bull markets, which pushes gold prices higher but, once the price of gold reaches a certain level, investors start buying up its more affordable cousin: silver.
There’s probably no better time than now to buy silver….I believe the price of gold could swing over $5,000 during this coming rally. That would be a 300% gain from current levels [and] with gold at $5,000, there’s no reason to think silver prices couldn’t reach $150 an ounce or higher. That’s an +800% gain from current prices.
The first thing investors tend to think about when considering owning any precious metal is physical bullion and while, I think it’s important to own some physical silver bullion, there are a number of things to consider.
- Storage: Physical silver is bulky. At only $16 or $17 a [troy] ounce, most serious investors can afford to stockpile pounds and pounds of the white metal. For $1,350 you can buy and store one ounce of gold but, for the same amount, you can buy 5.5 pounds of silver. Before buying a lot of physical silver, you should consider where you’re going to store it.
- Premiums: The premium for physical silver is always much higher than for gold on a percentage basis. Right now, the premium on a one-ounce American Gold Eagle is about 5%. Meanwhile, the premium on a one-ounce American Silver Eagle is around 20%.
Again, it’s important to own at least some physical silver but the bulk of your silver portfolio should be in equities. Silver stocks are simply easier to own and more liquid relative to physical bullion. Find some good silver stocks and sit on them. There are big moves ahead.
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It’s Economics 101. Price works to balance supply and demand. Limited supply causes higher prices; higher prices help curb demand…[and] that equation is playing out right now in the silver market. Mined silver supplies have been drying up over the past few years, while silver prices have climbed 20% in the same time frame…
Silver has often rebounded nearly 100% within 12-15 months after bad and long bear markets. History says Silver is ripe for a similar move over the next 12 to 18 months.
Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. Can you imagine what that means for the future price of this, indeed, precious metal? Forget about the popular expression: ‘Got gold?’ The much more important – and potentially more profitable – question to ask these days is, ‘Got silver?’
Silver in early 2018 is inexpensive compared to M3, National Debt, government expenditures, the Dow and gold.
Coming off two successive positive years, gold seems to be building toward something. Fizzling or dropping seems unlikely given 2017’s surprise performance and the general state of global equity markets – most of which seem to be overpriced, over-loved and over the top. 2017 will be recorded as a transition year for gold; 2018, in my opinion, will go down as the year gold reasserted itself as a primal force in the global financial marketplace.