Silver Or Gold, Which Is The Better Investment?
By Sammy Pollack:Investors who are bullish on gold should be even more bullish on silver. The long term fundamentals for silver are significantly more bullish than they are for gold. Let's look at some reasons why silver is a better investment.
- One major difference between gold and silver is that silver is actually consumed. This is because silver is used in very small quantities in electronics. This as opposed to gold where almost all of the gold ever mined is still above ground in a recoverable state. Silver scrap is too difficult to retrieve at this point because prices are not high enough.
- Historically the gold to silver ratio has been 16:1. Right now, the ratio stands at about 53:1. The ratio of silver to gold in the world is roughly thought to be around 15:1. Assuming the gold to silver ratio corrects to a level such as 20:1 would mean that