TSI editor’s note: Investment Newsletter writer and analyst Rick Mills seems to have a soft spot for the silver market these days. In a recent post at his website, Ahead of the Herd, he outlines some of the reasons why he sees silver as a promising investment. These include the Gold to Silver Ratio (GSR), supply and demand fundamentals, the rarity of the metal, and the fact that it has a wide range of industrial applications.
According to Rick Mills: “Silver prices typically follow gold prices. We have recently seen the gold-to-silver ratio decline, from over 125:1, to the current 98:1, meaning it takes 98 ounces of silver to buy one ounce of gold. Historically, the ratio is closer to 60:1, so silver is still quite undervalued compared to gold.
We have the same bullish indicators for silver as for gold, in terms of safe-haven demand inciting investors to park their money in silver bullion, silver ETFs or silver mining stocks, and the fact that silver is not subject to inflation like paper currencies.”
Will there be a silver bull ahead of the herd?