Clearly, recent events have heavily damaged the stock market; subsequently, it is a very uncertain time for buying and sell. With silver prices rising faster than gold since the beginning of the financial year, investors are left wondering if it prudent to invest in the precious metal. On Thursday, silver touched a seven-year high — at Rs 53,010 — in the Indian spot market. The MCX Silver September futures is trading above Rs 53,058 per kilogram (kilo).
Finally we offer a special service for larger clients. They can telephone deal through us directly on the London Spot Market. During the London trading day they can deal whole bars of gold (400 oz multiples), half pallets of silver (16,000 oz multiples) or a minimum of 16 kg of platinum at the world market price.
In this case, you put cash out and you own a brick. Then you wait to see if fear drives the price of the brick up. The instant there is less fear, the price of the brick will come down. Gold, prior to 10 years ago, has a horrible track record. Here’s another hint: If your investments are advertised right after a Snuggie ad, you are probably not in a good category of investments.
The gold-to-silver ratio averaged 47:1 during the 20th century. It’s averaged about 61:1 in the 21st century. So a ratio at or above 70 is in outlier territory and thus makes silver a good buy relative to the price of gold. You can see that the ratio sank to almost 30 at the peak of the bull market in 2011. It reached as low as 17 in early 1980. This compression in the ratio shows just how much silver can outperform its cousin gold. It also confirms it is undervalued compared to gold.
As is the case with gold, there are many ways to invest in silver. We shall refer the reader to this report on investing in gold for exploring the various options of investing in precious metals without the obligation of receiving physical bullion so we can focus here on what investing in silver means to you, and provide a brief overview of what forms of silver bullion are available and how to acquire it.