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July 15, 2013

Bullish Silver Fundamentals

1. Silver is the everyman’s gold Investors all around the world are worried about the weakening US dollar and already imagine a day when the world’s reserve currency will be worthless. Throughout history, whenever the value of fiat currencies became unreliable, governments and citizens turned to the stability of precious metals to transact day-to-day business. But gold’s high value-to-weight makes it impractical for daily transactions. Silver, on the other hand, is a very convenient medium of exchange. 

2. Silver is a valuable industrial material Because silver conducts heat and electricity better than any metal on earth, more than half of annual global silver production is destined for industrial use. Even in the midst of a Western economic downturn, industrial silver demand from emerging markets is projected to hit new highs in the coming years.

3. Silver is undervalued relative to gold Back when paper Currencies were actually backed by precious metals, the historic ratio of the value of an ounce of silver to an ounce of gold was about 16:1. Recently, that ratio has stood around 61:1. Given today’s gold prices, if silver were to realign with its historic ratio, it would be worth over $60/oz! If you think gold has yet to find its ceiling, there is good reason to believe silver’s rally will be even more dramatic.  - in ETF Daily News

Related stocks and ETFs: Hecla Mining (HL), Silver Wheaton (SLW), iShares Silver Trust ETF (SLV), 

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
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