Why I choose to invest in silver

in steemsilvergold •  7 years ago  (edited)

Silver is my investment.

Over the years there have been alot of discussions and articles written on which metal is the best investment, gold or silver?

I choose silver for one reason, and one reason only. Gold to silver ratio.

The ratio is a very important indicator on which metal is over valued or under valued. 

In 1792 the gold to silver ratio was fixed by law in the United states at 15:1. This means it would take 15 oz of silver to buy 1 oz of gold. If this was was still true  in current time it would have silvers value at $83.00 an oz. 

The silver to gold ratio didn't really get out of  line with the 15:1 untill the late 19th century, during the 20th century the average silver to gold ratio was at 47:1.

The highest gold to silver ratio on record was back in 1991 when the ratio hit 100:1. In 2011 it hit 32:1. 

Studies show that the current gold to silver ratio should be between 17:1-20:1.  Even at the high side of 20:1 that would put silver price at $63. Oz.

Now many  people would argue that the ratio should be the same as the mined ratio, which is currently 10:1 so for every 10oz of silver mined there is only 1 oz of gold mined. 

I believe we will see this ratio come back in line, I do not see 10:1 but 20:1 would be my guess. With the rising industrial use of silver, this will put pressure on the supply, which is already heading into a deficit.

So my recomendation to you is buy silver untill the ratio proves that it is time to buy gold.

I  am not a financial advisor, these are just my opinions based on facts.

Keep stacking my friends.

Follow me @raybrockman 

Upvotes and resteems are appreciated. 



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Because of the industrial use of silver, the ratio may invert. How many ounces of gold does it take to buy an ounce of silver?

Barring some new technology that requires silver specifically I have to push back just a bit. On an industrial basis nearly anything that requires silver can be done with gold as well. I think this puts a natural cap on silver at a 1:1 ratio with gold on a long term basis. That is not to say that a transitory condition of higher priced silver could exist for a short time. Especially considering the worlds above ground stockpiles of silver are virtually non-existent and above ground gold supplies are much greater. On the mining side silver still comes out of the ground at a roughly 9:1 ratio to gold.

You caught me! I am expecting new technology (especially in medicine) that will up the demand. I could be wrong, but Silver is my choice.

Agreed with the silver uses in medicine. Expanding all the time. Personally I like both. I try to accumulate at a 100:1 ratio silver to gold. Stack on Doc. Take care.

I like the way you are thinking DOC. Thanks for the visit my friend.

As they say Silver is Poor Man's Gold! But, As You mentioned in this post and many others have Commented, Silver has Many more uses then Gold will ever have. Look no further than the Silver Junior Miners reports. Silver is Drying up and it won't coming out of the ground like it once did! Great Post @raybrockman

Or the future rich man's silver. Thanks for the comment my friend. Keep stacking.

Hey great post my friend and I agree Silver has the greatest potential to increase. Stack high and wide my friend. Resteemed!

Thanks for the resteem buddy!

Oh hey no problem I just hope it helps you out. Not sure what resteeming actually does besides put your Blog over on my Blog space. But if it helps both of us out than hey I am all for it.

I'm also a little curious what restreeming does...
@pocketechange

At the very least it gets the shared content in front of a new set of followers for more overall views...

Yep the ratio is the reason I have bought mainly silver. Gold is more convenient to store though (but only at present) as its more valuable per ounce.

Tha ks for the visit, I believe you are correct, "only at present" keep stacking my friend.

Physical assets really appeal to me and silver has been my choice for several years now. I also believe that the price of silver is manipulated and has been suppresed for some time now.

Agree, manipulated hard and long, the time is coming when they will loose there grip on the manipulation. Keep stacking my friend.

I just sit back and wait for the time when everyone will be saying do you remember when you could buy silver for under $20. I prefer silver more because it's shiny. Cheers my friend.

When I was a kid in the late 1950s early 1960s it was not unusual to get old (at the time) mercury dimes or standing liberty quarters in change. Even silver war Jefferson nickels were common. Collecting wheat cents was very popular with young and old. Not many people knew what the new clad 1965 silverless coins meant. I'm 66 and been collecting for 60 years. I could go on and on about coin stories. I have spent real silver Morgan dollars at face value. So what I have seen happen, to silver, in a partial lifetime is really cool, but there is going to be an exponential explosion in silver prices to big to imagine, in the future. I hope to experience it too, although it my be very painful.

That time will come, and they will say I wish I had bought silver when it was $20.00. Thanks for the comment, keep stacking my friend.

Silver has been my investment choice since I started to see through the veil of deception 20+ years ago. A close confidant of mine had his eyes on silver and so did I and we were fortunate to buy back when silver was still cheap... single digits at least. I do not have nearly the amount I would like but that is the case with all good investments. I do not have nearly the amount of crypto's that I would like either but everything is a work in progress! Great little post and thanks for sharing your opinion on the precious metals! They are the rock we stand on!

Peace,
The Last Sage

Indeed the rock we stand on. There is truth to that!

Wow, silver in single digits, that has to make you feel good. I agree it is diffently the rock. Thanks for the visit and comment my friend. Keep stacking.

It's quite possible that Silver my be worth more than Gold some day...
@pocketechange

Great post. My husband was adament about investing in some silver a few years ago. Lately, it's been up and down, but I'm still glad we invested in something that you can actually put in your hands.

Thanks for the visit and comment. Its nice to beable to hold silver in your hands.

I invest in both gold and silver, but I agree with you that silver has a larger upside potential based on the ratio. It is no secret the prices have been artificially beaten down with their phony paper markets, but they can't keep them down forever, and we can all take advantage of these prices to keep stacking! Thanks for the post and following!

Thanks followed back. They will lose the grip on the manipulation some time and thats when the excitement will start. Thanks forbthe comment and visit

I think it is a great idea to play that ratio! And trade into gold as the ratio trends closer to its historical norm!

Agree, buy gold with silver when it gets to 20 to 1. Thanks for the comment my friend. Keep stacking.

Do you really invest in silver though? Why invest in silver even 1 usd equivalent compared to even mooncoin. Even a trash coin outperforms typical assets. Im not saying invest in mooncoin btw (lol).

I do really invest in silver. I also have some bitcoin, etheruem, litecoin and steem. I still have to many concerns about cryptocurrency. I do not believe that crypto's will be in place before the next crash. Thanks for the comment.

Well let me ask you this. Why not buy Bitsilver. And leverage the bitsilver at 4 times, so you can use the currency so if the price of silver doesn't plummet 4 times, you can use it and buy something else, and still own the asset of silver.

using BTS (bitsilver not a coin, but BTS asset of silver) 1200 on 5k.PNG

so if you have bitsilver instead of real silver, you can have the price of silver, and margin trade it for other currency.

I am just not that knowledgeable my friend I am still very new to crypto's. Would love to learn more about it, just takes time.

I did this for the first time tonight with the margin trading, but thats the advantage of holding bitgold or bitanything within BTS. BTS was Dan's first coin, Steem his second. BTS is a blockchain exchange.

in conclusion, you can. Sell your real silver irl, for Bitsilver, and then margin trade your bitsilver thus holding your silver value and gaining value elsewhere, to buy like steem or btc or whatever.

Followed, I will check out some of your post to see if I can get a better understanding. Thanks for sharing.

I hadn't posted about that specifically but that is a good idea for content :P

It's gonna blow and when it does silver will go...up up and away...

Agree, thanks for the visit and comment.

Great post.

Following you now and upvoted.

Thanks my friend.

Stack on! Cheers.

Oh I will, thanks for the visit.

GOLD IS MONEY AND ABSOLUTLY NOTHING ELSE.

Nonsense! Silver is as well.

Yes I agreed I collect silver as well
😄

Dont close your eyes completely on silver. It has always been money. Thanks for the comment and visit.

Absolutly

Additionally, silver has industrial demand, and trades as a commodity most of the time, but adds investment demand during times of economic hardship. The above ground supplies of silver are also much lower than gold due to its use and consumption in industry, compared to most of the above ground gold that simply sits in vaults and is never consumed.

Agree, I could see one day silver being priced higher than gold. Thanks for the visit and comment my friend.

Great article. What percentage of your silver is in coins if you don't mind me asking?

About 20%, I mostly stack bars. Tha ks for the visit and comment.

@anothervoice of the steemsilvergold community was here and up voted this post. I like silver because it's pretty. :-)

It is pretty, isn't it. Thanks for the comment.

:-)

This post received a 1.6% upvote from @randowhale thanks to @raybrockman! For more information, click here!

I posted a new video today.

This post has received a 22.89 % upvote from @booster thanks to: @raybrockman.