The future economy; Silver and Gold..... a MUST
Hello friends. I know it's been a couple of weeks since my last post. I've been watching the hits, and a lot of new visitors checking out my blog. Thanks you for that. Remember; I receive absolutely nothing in return for posting this blog. I DON'T advertise on the blog, and I promote the blog manually through search engines, email, and word of mouth. I mention this so you know I have no hidden agenda. I simply want to help you become aware of the importance of owning silver; and to some extent gold.
So, over the last week, we have seen the price of Silver go up a whole dollar. That's a 6% increase in just a week. Is that outstanding? Not necessarily. And today's blog isn't trying to hype it up for you. Especially considering that Gold hasn't done as well. But that's why I'm writing today's blog. To explain a little bit about silver going up and gold not.
If you look at today's prices; gold is at: $1235.80 and silver is at $16.25. What is significant is; that is a 76:1 ratio. Meaning, it takes 76 ounces of Silver, to equal the value of 1 ounce of Gold. If you look at the past months, the ratio was closer to 80:1. But, if you look at history, the ratio should be a lot closer. In the peak of 2011, when gold was around $1950 an ounce, and silver was around $48 an ounce, that is a 40:1 ratio. If you go back in history, (Which is difficult, because today's WORLD economy isn't like it use to be), the average ratio was 16:1.
The point of today's blog, is to tell you that in today's economy; with the strength/weakness of the US Dollar and other currencies; and the high demand for silver for industrial uses in the medical and technology fields; and finally the fact that silver is becoming harder to produce; it is my opinion that TODAY's ration should be closer to 30:1. So, even if gold was to stay at exactly the $1235.80 that it is at currently......... silver SHOULD be, TODAY, at: $41.00 and ounce. Even at a 40:1 ratio, the price of silver TODAY, should be around $31.00 an ounce. The point is, Silver is extremely undervalued. So, whether gold goes up or stays the same, what is extremely important is; the RATIO. I believe that in time, you're going to see the silver to gold ratio close the gap. This is one reason that silver is what you should be buying.
Now, for those of you who feel you have enough silver and gold already purchased, and you don't really need or want to buy more......... CONSIDER THIS. How much GOLD do you have. If you have MORE than 5 ounces of gold, you might consider exchanging it for silver. Most local coin and silver/gold dealers will exchange it for you for pretty much even. So, if you traded 10 ounces of gold, for silver, you'd get approximately 760 ounces of silver. Then, when the ratio drops down to say 50:1, you could turn around and trade BACK 500 ounces of silver for 10 ounces of gold. You have your 10 ounces of gold back, and you have 260 ounces of Silver left over.
Mind you, I've NEVER promoted silver and gold on my blog as an "Investment". But when I see the ratio so disproportionate, and it looks like the price of Silver and gold are on the rise, and silver is so undervalued, it seems trading some gold for silver might be something for you to consider. It is YOUR metals however, so only you can make that decision. But remember, it's not like it's costing you anything. And maybe you want to have a certain amount of gold on hand because it's more easily transported if you have to bugout or relocate quickly. An additional 760 ounce of silver could be heavy.
My own personal opinion; based on research and education from those in the gold and silver market. Between the Deutschbank acknowledging the gold and silver manipulation; the US Election; the US Dollar; and the world economy...... I anticipate that the price of gold and silver are going to rise significantly. I believe that by the end of 2016 or the beginning of 2017, silver will be over $20 an ounce and gold will be over $1300. I also see the ratio between the two tightening. Now, I could be wrong. If Hillary Clinton is elected president of the United States, I believe that it will be 4 more years of what Obama has done. If Bernie Sanders is elected, I see a much larger debt issue and probably a dramatic price rise in silver and gold. Sanders is against the banks and his desire for socialism and spending, will make the dollar even weaker. If Donald Trump is elected president, I believe the US economy will strengthen a bit in time, but his desire to balance trade agreements and allow the United States to be able to sell more and buy less, means that other countries like China, South Korea, Mexico, etc. may have weaker currencies. This will mean a rise in the silver and gold prices. If Ted Cruz is elected, I believe he will be similar to Hillary Clinton. They are different political parties, but they are both part of the "Establishment". (Even though Cruz pretends he's an outsider). The congress and Cruz will go after some issues; mainly social (Like Obamacare); but I don't believe Cruz can or will do anything about the economy, dollar, trade, etc. Therefor, I think there will be more status quo.
But the big thing is: Manipulation has been recognized and acknowledged. At the same time, silver and gold are in high demand. Not only by investors and those looking to protect themselves; but as far as silver goes, it's in higher demand industrially. If the economy really starts to boom, so will silver because of the industrial uses. If the stock market crashes, (Which I think it will), silver and gold will eventually go up big time. Just like in 2011. Except this time, I don't believe it will come back down so far. People can handle the first crash of 2008. They won't allow 2 times. They'll want physical metals as insurance.
So, I recommend that you keep an eye not necessarily on the price of silver and gold, but on the RATIO. It's currently at 76:1. If you're sitting on 50% silver and 50% gold (In dollar amount), then you might consider looking at EXCHANGING some of that gold for silver. Remember: We buy silver and gold as Insurance. We buy it to protect our wealth against inflation, stock crash, economy crash, etc. We also buy it to be able to reduce debt and purchase large items at a discount. If you can use the ratio to protect yourself better, that's good. The good thing is, you don't lose any money no matter what you do. We care about the buying power of silver and gold. That doesn't change.
CYA: SE:
So, over the last week, we have seen the price of Silver go up a whole dollar. That's a 6% increase in just a week. Is that outstanding? Not necessarily. And today's blog isn't trying to hype it up for you. Especially considering that Gold hasn't done as well. But that's why I'm writing today's blog. To explain a little bit about silver going up and gold not.
If you look at today's prices; gold is at: $1235.80 and silver is at $16.25. What is significant is; that is a 76:1 ratio. Meaning, it takes 76 ounces of Silver, to equal the value of 1 ounce of Gold. If you look at the past months, the ratio was closer to 80:1. But, if you look at history, the ratio should be a lot closer. In the peak of 2011, when gold was around $1950 an ounce, and silver was around $48 an ounce, that is a 40:1 ratio. If you go back in history, (Which is difficult, because today's WORLD economy isn't like it use to be), the average ratio was 16:1.
The point of today's blog, is to tell you that in today's economy; with the strength/weakness of the US Dollar and other currencies; and the high demand for silver for industrial uses in the medical and technology fields; and finally the fact that silver is becoming harder to produce; it is my opinion that TODAY's ration should be closer to 30:1. So, even if gold was to stay at exactly the $1235.80 that it is at currently......... silver SHOULD be, TODAY, at: $41.00 and ounce. Even at a 40:1 ratio, the price of silver TODAY, should be around $31.00 an ounce. The point is, Silver is extremely undervalued. So, whether gold goes up or stays the same, what is extremely important is; the RATIO. I believe that in time, you're going to see the silver to gold ratio close the gap. This is one reason that silver is what you should be buying.
Now, for those of you who feel you have enough silver and gold already purchased, and you don't really need or want to buy more......... CONSIDER THIS. How much GOLD do you have. If you have MORE than 5 ounces of gold, you might consider exchanging it for silver. Most local coin and silver/gold dealers will exchange it for you for pretty much even. So, if you traded 10 ounces of gold, for silver, you'd get approximately 760 ounces of silver. Then, when the ratio drops down to say 50:1, you could turn around and trade BACK 500 ounces of silver for 10 ounces of gold. You have your 10 ounces of gold back, and you have 260 ounces of Silver left over.
Mind you, I've NEVER promoted silver and gold on my blog as an "Investment". But when I see the ratio so disproportionate, and it looks like the price of Silver and gold are on the rise, and silver is so undervalued, it seems trading some gold for silver might be something for you to consider. It is YOUR metals however, so only you can make that decision. But remember, it's not like it's costing you anything. And maybe you want to have a certain amount of gold on hand because it's more easily transported if you have to bugout or relocate quickly. An additional 760 ounce of silver could be heavy.
My own personal opinion; based on research and education from those in the gold and silver market. Between the Deutschbank acknowledging the gold and silver manipulation; the US Election; the US Dollar; and the world economy...... I anticipate that the price of gold and silver are going to rise significantly. I believe that by the end of 2016 or the beginning of 2017, silver will be over $20 an ounce and gold will be over $1300. I also see the ratio between the two tightening. Now, I could be wrong. If Hillary Clinton is elected president of the United States, I believe that it will be 4 more years of what Obama has done. If Bernie Sanders is elected, I see a much larger debt issue and probably a dramatic price rise in silver and gold. Sanders is against the banks and his desire for socialism and spending, will make the dollar even weaker. If Donald Trump is elected president, I believe the US economy will strengthen a bit in time, but his desire to balance trade agreements and allow the United States to be able to sell more and buy less, means that other countries like China, South Korea, Mexico, etc. may have weaker currencies. This will mean a rise in the silver and gold prices. If Ted Cruz is elected, I believe he will be similar to Hillary Clinton. They are different political parties, but they are both part of the "Establishment". (Even though Cruz pretends he's an outsider). The congress and Cruz will go after some issues; mainly social (Like Obamacare); but I don't believe Cruz can or will do anything about the economy, dollar, trade, etc. Therefor, I think there will be more status quo.
But the big thing is: Manipulation has been recognized and acknowledged. At the same time, silver and gold are in high demand. Not only by investors and those looking to protect themselves; but as far as silver goes, it's in higher demand industrially. If the economy really starts to boom, so will silver because of the industrial uses. If the stock market crashes, (Which I think it will), silver and gold will eventually go up big time. Just like in 2011. Except this time, I don't believe it will come back down so far. People can handle the first crash of 2008. They won't allow 2 times. They'll want physical metals as insurance.
So, I recommend that you keep an eye not necessarily on the price of silver and gold, but on the RATIO. It's currently at 76:1. If you're sitting on 50% silver and 50% gold (In dollar amount), then you might consider looking at EXCHANGING some of that gold for silver. Remember: We buy silver and gold as Insurance. We buy it to protect our wealth against inflation, stock crash, economy crash, etc. We also buy it to be able to reduce debt and purchase large items at a discount. If you can use the ratio to protect yourself better, that's good. The good thing is, you don't lose any money no matter what you do. We care about the buying power of silver and gold. That doesn't change.
CYA: SE:
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