Silver is shining a big and bright buy signal.
Heck, most of the commodity market is as well. But I am partial to the shiny stuff. I mean, have you ever held a gold or silver ounce in your hand? It just feels like wealth.
What I really like is that I can go down to my local coin store, lay some fiat money on the counter, and walk away with some coinage. Nobody (like the government) ever needs to know that that transaction just took place.
Or you can buy some investment jewelry at very reasonable prices and service from Menē. (too bad they don't sell silver jewelry as the margins aren't profitable)
Plus, I like to know I have a pirate treasure. Arrgh!
All kidding aside, if history has anything to show us (and it always does), if you purchase silver now there is almost an absolute certainty that you will increase your wealth from it in the future.
Now, I can't say exactly when - but that day will come.
Here's why.
This chart shows the gold to silver ratio going all the way back to 1998. The higher the graph, the higher the silver to gold ratio was (meaning cheap silver).
Silver is naturally found in the Earth at a 9-to-1 silver to gold ratio. It hasn't traded there ever, or at least in a very long time so that it doesn't matter. What matters is that there is a historical precedent that if you buy silver when it is above a ratio of 75 silver ounces to one ounce of gold, that you will make money.
Right now that ratio is at 76.
As you can see, it never stays above the 75 ratio for long.
So buy now - but when to sell?
Again, the answer is in the chart. Somewhere below 50.
So all you need to do is buy silver now, and then wait for the ratio to drop down below 50 and you sell for a nice profit. You can also not sell, but trade it in for gold. Then when the ratio gets above 75 again, trade it back for silver.
You can buy coins, and I suggest everyone has at least some precious metals as investments, but you can also buy silver mining companies.
The benefit of owning shares of silver miners is that they benefit exponentially from the increase in the price of silver.
You see, they have fixed costs. They have fuel and machinery to buy. Employees to pay. They have all this overhead that doesn't go down if silver is cheaper. Most miners are having profitability problems right now.
But when the price of silver goes up, well that just increases their profits (and their share prices) immensely.
Now, if you can find some silver miners that are still profitable, or nearly profitable, at the current low prices - well they are going to be minting wealth.
I've heard the same thing for 20 years now. But it has to happen one day and 2018 is looking like the year it might happen!
2016 was a decent run too though! Not like 2011, but pretty good.
I screwed up big time and stacked most of my silver back when bitcoin was around $100. I used Amagi Metals and paid with bitcoin....
Oh man. Well, nobody knew where cryptos where going to be today.
Chalk it up to knowledge and keep on stacking!
I've seen this gold to silver ratio chart before and one reason I'm very bullish on silver. Great info on this post. I don't know when either, but I think silver and gold will have their day again relatively soon :)
I think it will!
...just come over to #steemsilvergold already... Sheesh!
Love your action!
I'm here!
Whooop Whooop!!!
Also, silver is being used up.
Further, there are new uses being brought online that NEED silver, but in tiny quantities to do amazing electronic stuff. Basically, they will pay whatever price to get some silver to do this.
The comex doesn't have any silver.
So, if the demand goes up like I am expecting, the price may shoot through the roof.
It certainly has other uses besides looking pretty :D
You're definitely spot on about that gold silver ratio. I had very similar thoughts when I bought my first coins.
There's only problem, now I'm not sure I want to sell them!
For whatever reason, I feel far less attachment selling my silver equities at a profit. First Majestic Silver is still one of my largest positions, and I recently bought some Pan American Silver calls the first week of December.
And yeah you're definitely right about holding precious metals in your hand. My 3 year old daughter got some money for Christmas, I think I'm going to buy her this 1/4 oz gold round.
Hope she doesn't lose it!
Or you buy her silvernow, then when the ratio goes down to 50-1 you trade 60% of it for this gold coin. Then she will have both this coin and a pile of silver.
Love of Precious Metals in Arizona it's a Natural Thing right ?? @getonthetrain
Sure is!
I'm pretty new to all this so please pardon if my question sounds silly. Where do we invest on Silver miners?
I've always thought it was a waste of money investing on silver but seems like I was wrong all along. This kinda broadened my perspective regarding silver.
Well, to buy silver mining company shares you normally have an account at a brokerage. Plenty of online ones to choose from. Which ones you can join depend on what country you live in. I do not know what options are available in India though.
I love the chart work and trade suggestions! I happen to agree! I think we see a nice rally in silver prices over the next few months/ years! Thanks for showing me the ratios! I think it is always important to evaluate members of a sector against one another, so it seems silver is very undervalued! Hope this trade serves you well.
Thanks! If it takes awhile, I don't mind - I get to play with my silver :D
As I am just starting to learn about precious metals that was really educating for me.
Do you hold some silver or do you go all in with your trades if they fulfill your requirments?
Also thanks for sharing your mining companies I will have a closer look at them
I have a large quantity of physical silver. My pirate treasure.
Working on getting there. One more question if you don't mind. Are people buying coins only because they look nicer than bars? Even with the tax premium I have to pay I get more silver for my coin with bars. So collecting or are coins easier to sell?
What size bars we talking? The larger the bar, the lower the premium.
Otherwise, private mint stuff has a lower premium than goverment made stuff.
Great advice for the long game. you so clearly explain such complicated things! Great job. Bravo and thank you for sharing with us your wisdom and knowledge.
Holding gold in my hand is what got me the gold fever!
It'll do that for sure!
I was actually confused on the graph but i came to understand it a bit later when you said that the higher the graph, the higher the silver to gold ratio when meaning cheap silver.
I think I've learnt something new to day.
Thanks
You're welcome
50 to 1 ratio would be a nice bump for this under-appreciated love of mine
Thanks for the heads upon silver. @getonthetrain
Thank you for all the investment advices .. I will try my best to be like u 🤗
Time for silver to make a move, its been too long!!
Man, I wish I some more liquid cash on hand to really get some good silver and gold right now! I'm all tied up in stocks right now.
Silver miners are always a good bet with rising silver prices... that's stocks :D
I'd never hear of Mene before, that is pretty cool. Do you see any advantage to investment jewelry over fractional coinage?
Well, if you ever wanted to carry a bit of money on you without setting off alarms you can just wear Mene. I think nobody would bat an eye if you are wearing a pair of earrings, a couple rings, and a necklace or two.