In the precious metals world gold tends to get all the attention, but its close companion silver brings plenty to the table for investors looking to hedge turbulent markets and capitalize on long-term investment strategies.
Gold historically outprices silver. There is a correlated relationship – when gold goes up, silver goes up more and when gold goes down, silver prices drop further.
At current, silver prices are hovering around $16 per ounce, and gold is sitting around $1,200 per ounce – a significant difference. The price of silver has dropped a whopping 75 percent in the past five years, and market analysts feel strongly that this commodity is undervalued.
There are two questions that investors need to consider: Why invest in silver? And, why invest in silver now?
The undervalued price of silver makes it an affordable option for investors who may be looking to test the waters or who have less savings put aside for investment purposes.The price of one ounce of gold is equal to the purchase of 75 ounces of silver, allowing investors to significantly capitalize on their investment in the event of an uptick. On the other side of the coin, an investment in silver is subject to great downturn. Investors need to consider this factor as well, no investment is a sure bet.
The reason the timing is right for silver brings us back to the current political and economic turmoil. In the U.S., investors are uncertain and mistrust financial institutions. Meanwhile, global markets have been in a bubble for close to five years and inflation is lower than expected, leaving analysts and investors edgy over a weak U.S. dollar and an impending stock market correction of significant scale.
Specific to the precious metals industry, gold experts are seeing a plateau in the mining of gold, and the discovery of new mines are few and far between. A diminishing supply of gold with no drop in demand leads investors to believe the price of gold will skyrocket.
When gold prices soar, silver prices tend to follow suite, with potential to exceed the overall performance of gold.
Silver may not be the hot commodity discussed in daily news headlines, but industry experts aren’t overlooking this asset. Investors looking to hedge their investments against the current economic turmoil and capitalize on a major market movement are wise to consider silver as a potential asset for their investment portfolio.
If you would like to speak with an expert to learn more about silver and other precious metal investments, feel free to call our experts at Noble Gold today. We’re happy to answer any questions and further discuss your investment options with no obligation, just give us a call at 877-646-5347 for free expert advice, or email us at firstname.lastname@example.org.
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