Why Invest In Silver?
Winston Churchill once said “If you look back into the past far enough, you’ll be able to predict the future”. Here at Eztrader we’re always on the look out for the latest market trends and our research has led us to the next bull market.
At the time of writing this (May 2014) we’ve spotted a trend so exciting, unprecedented in size, which will be globally driven. So much so, Eztrader is now concentrating its efforts in the precious metals sector. Not just any precious metal commodity – we’re putting our golden eggs into this basket to alert readers to invest in silver.
No doubt you have heard of historical data, bull and bear markets, under valued, over valued, market confidence, inflation, deflation, housing bubble, and the stock market crash. We’ve looked back as far as we can and at this moment in time Silver is seriously undervalued, where demand is outstripping supply and where savvy investors are moving their money.
3 Reasons Why You Should Invest In Silver
Undervalued: Currently Silver is approx. $20 per troy ounce (31.105 grams), in the last two market crashes (1980’s & 2000) Silver hit the $50 mark. But in both instances the ratio between Silver and Gold has hoverred around the 15:1 ratio. For Example: If Gold is $1200 per troy ounce then Silver should be closer to $80 per troy ounce – using the 15:1 ratio. Today (May 2014) the ratio between Gold and Silver is 65 to 1. (Gold being at $1295 and Silver at $20). So even by this estimate the price of Silver should be alot higher.
Usage: Unlike gold, silver has alot of industrial and technological uses making this the precious metal of choice. If you are reading this on your tablet, computer or phone the chances are your device has silver alloy within the circuit board. The latest LCD / Plasma TV’s, Solar Panels, electrical and electronic devices will have some form of Silver within them. Silver has superconductivity properties offerring a nearly 100% efficiency when used in electricity production. China’s next generation power stations will incorporate this new technology. Alongside the traditional usage of precious metals such as jewellery, collector coins, commodity trading, individuals, banks and governments have started to invest in silver so heavily, this has become the world’s worst kept secret.
Demand and Supply: Silver has to be mined from the ground. It’s a labour intensive process which relies heavily on investment and the latest mining output figures clearly show a drop in silver extracted. Silver is mined as a by-product to gold, copper, zinc and lead and is price sensitive to amount produced as a byproduct. As demand has risen and supply has fallen, mining companies have little incentive to increase production as silver is not key to their core business.
Any newly discovered mines typically take 15 to 20 years to be in profit. Should precious metal production increase, it is highly unlikely supply will keep pace with the increasing demands for silver.
More Proof Why You Should Invest In Silver
Savvy Investors: Have you ever wanted to invest like Warren Buffet? Well nows your chance… Bill Gates, George Soros and Warren Buffet have all invested heavily into the silver commodity. In Jan 2013 it was reported the large banking group HSBC purchased $876 million worth of silver from a Polish bullion producer KGHM.
In India, import tariffs have been place on gold with the intent to restrict gold imports. The Indian savvy investor has now moved into buying silver as a result demand has soared whilst the prices remain very low. Meanwhile in China, national TV station CCTV is encouraging its viewers to invest in silver as an alternative to gold.
So What Can You Do? Like any investment we always urge you to do your own research**. Their are many factors which can affect silver / gold prices and these subjects will be covered in the coming weeks. The reason Ezstocktrader has invested time and money into Silver is because we believe, we are in the Right Place at the Right Time to invest in silver and take massive action. So, by now you will realise you have a couple of options: 1) Do nothing and watch this opportunity sail on by or 2) Take the first step into securing your future and invest in silver.