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Thursday, September 6, 2012

Looking For A Silver Bet? Hear The Roar Of This Great Panther

Silver is poised for years of gains and I believe speculation in this metal could be very profitable if timed well with a good company. I have suggested that silver could outperform gold in the next 12 months and thus recommended considering some of the larger players in that metal. Silver is not only a precious metal but also has many industrial applications and thus will always have demand. Right now silver is priced around $32.30 an ounce. Gold is priced around $1692 an ounce. That represents a 52.5 gold to silver price ratio. On its own it doesn't mean much but the historical ratio is 16 to 1. The respective prices of gold and silver have not seen this ratio in quite some time and a reversion is well overdue. In order for this to happen the price of gold must plummet while silver holds stagnant or silver must rise at a higher rate than gold in the next few years. With central bank stimulus and inflation seeming ever more likely I think silver may be ready to breakout at a higher rate than gold. In fact, it seems to have already begun in August when the SPDR Gold Trust ETF (GLD) was up 4.9% while the iShares Silver Trust (SLV) far outperformed GLD being up 13.5%. My readers know that I have been adamant in my suggestion to own physical assets in these metals. For those investors that cannot or will not buy physical assets, I have pointed to the ETFs that track the price of metals as a second line approach. I recommend the SLV and ETFS Silver Trust (SIVR) for silver exposure second to physical coins and bullion. For the individual silver companies I recommend Silver Wheaton (SLW), Silvercorp mining (SVM) and Pan American Silver (PAAS). I think they are safe bets for the long-term. But the greatest returns are not always had from the safe play. Thus the purpose of this article is

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