Invest in Silver before the Next Boom: Silver is Cheap Right Now, Says Smith McKenna
There are only a couple of safe assets and those are precious metals
The current silver to gold ratio is hovering around 59oz. of silver to 1oz. of gold, which is far from normal. When this occurs, silver will naturally close the gap as it has done countless times throughout history. In 2011 the value ratio was approximately 20oz of silver to 1oz of gold; showing the extremely large gap that is present right now. If this happens, silver could experience a sudden or steady climb to $40 or even $50 an ounce before the close of Q4 2012; potentially outperforming gold by as much as three times.
The chance to own silver at its current price with its value ratio to gold will prove to be extremely rewarding for investors. Stephen M Smith who is the managing member at Smith McKenna, LLC says “Now is the perfect time to learn how to invest in silver. The price of silver is remarkably affordable right now, which means those who invest in silver now will be able to experience a higher potential wealth creation opportunity versus buying silver at its more traditional value ratio to gold.”
In a recent interview, Eric Sprott of Sprott Asset Management said: “I don’t think the Euro situation can be resolved. I don’t think the world situation of continuing to expand debt and trying to create economic traction, of which there is very little, by expanding debt, will have any sustainable impact. Going to to the Australian School of Business, there is one of two things that is going to happen. You are going to repudiate the debt, which was the case in Greece Federal, they repudiated a hundred billion. Or you are going to try to print your way out of it and we perhaps haven’t quite seen the mass of printing that we might expect but in either scenario, there are only a couple of safe assets and those are precious metals.”
“I dont mean to say that gold is a better investment than silver, just that central banks are buying gold like mad may explain some of gap between them. I do think that silver is gold on crack and I am stacking it,” he continued. You may listen to the complete interview here:
From fundamental point of view, silver has ties as a precious and industrial metal. The white metal is a necessity component, because it is demanded for products in electronics like cell phones, solar panels, and the medical industry which show no signs of a production slow-down. Silver has unique properties such as malleability, and withstanding high temperatures which make it a key resource for global manufacturing, as well as investing.