Silver Investing: No Longer Poor Man’s Gold!
Since time immemorial, gold has been symbolizing prosperity and wealth. Due to comparatively cheaper piece than gold, silver has been called as ‘the poor man’s gold’. No one can deny that both of them are much valued metals since the days of yore. Few years ago, silver was usually ignored in the valuation, but presently the investors have started to consider it as one of the most preferred resources as precious metal. They have realized this metal as the real prize. Silver is good option for investment for those who are new in the field of investment in precious metals as it is the fastest and easiest way to get profit. Forget about those days when silver was the poor men’s gold. The concept is now changing, as it is one of the best opportunities for investment. Due to the following reasons, the valuation and demand of silver is rising fast.
- Comparatively lower silver price
Compared to gold, the price of silver is still cheaper. As at November 07, 2015, one ounce of gold costs US $1089.4 when an ounce of silver costs US $14.84 which indicates gold is more than 60 times more valuable than silver. But the ratio of amount of silver expected to be reserved with the amount of gold exceeds only by 10:6. Therefore, it can be expected that the ratio of gold price to the silver price should be somewhere around 10:1 ratio rather than 64:1 ratio. For that reason, the price of the silver should be around US $127 or more which encourages the investors to invest in this metal.
- The production of limited silver vs. the demand for silver
Silver is being used several ways in the industrial field. But in that comparison, the production of this white metal is limited which indicates a forthcoming shortage of silver just as a matter of time. This obviously indicates a boost in the price of silver to hundreds of dollars. If you compared the statistics of major part of the mined gold where around 400 tons are being channelized for the industrial usage where more than 14,000 tones or around half of the silver mined are channelized for the use of industrial purpose.
- Deficiency of counterfeit silver
If you look on the history of silver price and the evident manipulation of its price, you will come to know the insufficient incentive for counterfeiting the white metal. Therefore, all the silver bullions require the marking of .999 authentication mark or the refinery/ mint name. This helps to make its valuation easy for all.
- Fear about gold restriction and confiscation
Due to the sky-scraping value of gold, there are several restrictions and confiscations on its import or purchase taken place in the past. Even the investors’ fear about the repetition of such occurrences makes them to show interest in the investment on silver.
- Easy to handle and store
The great thing about purchasing physical silver is that it is not only obtainable easily, but also you can store and handle it at your own home or office without any problem.