Silver vs Gold

In: Business and Management

Submitted By zuraidah3003
Words 1157
Pages 5

The historic silver/gold price ratio was 15 or 16:1, but in recent years, silver is relatively cheaper ranging from about 40:1 to 80:1. On Jan 24th, 2003, with silver at $4.89/oz. and gold at $368/oz., the ratio is 75:1. This means that silver is currently undervalued, and cheaper than historic norms, and thus it is better investment than even gold if investors want to “buy low and sell high”.
The supply and demand fundamentals for silver are extraordinary. Annual supply is about 650 million ounces, and annual demand is about 800 million ounces. Considering refined and mined known silver reserves, there are far less silver in the world than gold. About 150 million ounces of silver vs. 4000 million ounces of gold.
Investors may get so much silver for their money. A bag of junk silver weighs about 55 pounds, and the size of a bowling ball. If investors invested $100,000 into junk silver coins, at $3500/bag, that would give them 28.5 bags each weighing 55 pounds, or 57 bags weighing 27 pounds each, or about 1571 pounds total. Could they imagine moving that much around their house if they had to move? Silver is so cheap it creates physical problems for investors today!


Silver, Gold, Awareness, Differences, Prospective, Investment.

Chapter 1
Lately, value investors are moving towards into silver investment rather than gold investment due their infatuation and brighter prospect gain look continuously.
True, both metals have not done very well most almost recently, posting losses in five out the six sessions, but a big-picture view on prices and exchange-traded funds shows just how much silver is turning heads.
The industrial and investment demand drives the price of the silver increase robustly, thus potentially contribute higher income. Compared to gold, silver is much more affordable for individual investors and…...

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