If you like gold's trajectory/bullish in gold, the cheaper metal is the one to get. Silver on its own trades directionless, except that it is tracking the movement of gold. Similarly this can be seen in other markets such as Bitcoin, when considering BTC vs LTC. Except that its in a more extreme manner than the other.
Since the last major bubble that peaked at $49 USD it have been severely underperforming Gold. In my opinion that also creates opportunity, given the fact that Silver have almost retraced all of its entire rally throughout 2008~2011. It could still go much lower, at $8 a piece however.
US inflation from 2001 to 2015 currently stands at 33.4%. With the price of $4.7 in 2001, at minimum we should never expect a price lower than $6.269.
That is without consideration of the declining yet small supply of silver along with an increasing demand from industrial uses.
Looking at the cost of producing Silver alone in 2013, the break even price of miners currently stands at $24.05 with a loss of $9 per ounce sold. That'll add even more pressure to the supply once again as more mines are shut down.
Technicals:
We're approaching the decade long trend-line since the start of 2000, that'll act as a pretty strong support in the coming months to years. $14 is the lowest I expect.
Looking at the price ratio of (Gold / Silver), is wedging up towards a major resistance at $84 USD.
-----------------------------------------------------------------
To sum things up:
Silver is no longer considered by the average joe as a form of good investment. It is mostly used for industrial purpose, alongside a minority of hard money advocates and bullion buyers who realize its importance as a hedging instrument, a safe haven, or store of value asset.
The market is capitulated, this is the exact bullish scenario the market needs to kick start off another rally when people are caught by surprise.
I'm starting to see potential in owning physical silver bullion today. (Not paper), and it could be a good long term investment.
Acknowledgements:
www.zerohedge.com/ne...ilver-bullion-market
www.silverinstitute....as-a-precious-metal/
www.silverseek.com/c...produce-silver-13222
Since the last major bubble that peaked at $49 USD it have been severely underperforming Gold. In my opinion that also creates opportunity, given the fact that Silver have almost retraced all of its entire rally throughout 2008~2011. It could still go much lower, at $8 a piece however.
US inflation from 2001 to 2015 currently stands at 33.4%. With the price of $4.7 in 2001, at minimum we should never expect a price lower than $6.269.
That is without consideration of the declining yet small supply of silver along with an increasing demand from industrial uses.
Looking at the cost of producing Silver alone in 2013, the break even price of miners currently stands at $24.05 with a loss of $9 per ounce sold. That'll add even more pressure to the supply once again as more mines are shut down.
Technicals:
We're approaching the decade long trend-line since the start of 2000, that'll act as a pretty strong support in the coming months to years. $14 is the lowest I expect.
Looking at the price ratio of (Gold / Silver), is wedging up towards a major resistance at $84 USD.
-----------------------------------------------------------------
To sum things up:
Silver is no longer considered by the average joe as a form of good investment. It is mostly used for industrial purpose, alongside a minority of hard money advocates and bullion buyers who realize its importance as a hedging instrument, a safe haven, or store of value asset.
The market is capitulated, this is the exact bullish scenario the market needs to kick start off another rally when people are caught by surprise.
I'm starting to see potential in owning physical silver bullion today. (Not paper), and it could be a good long term investment.
Acknowledgements:
www.zerohedge.com/ne...ilver-bullion-market
www.silverinstitute....as-a-precious-metal/
www.silverseek.com/c...produce-silver-13222