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 Reports and Commentary from the Investment World

Reports and commentaries are posted here on a regular basis.


Silver ETF

I Shares Silver Trust (SLV:ASQ)

Silver did nearly twice as well as gold during the last two precious metals bull markets.

This ETF (Exchange traded fund) is a great alternative or complementary investment to gold.

Argentum has been used to create wealth as far back as 4000 B.C. The Romans used it in their Denarius coins. They gave Argentum its name — it’s the Roman name for Silver!

What most investors don’t know is that even though silver has never been as highly valued as gold in dollar terms, it has the potential to be a lot more profitable than gold as an investment.

There is an historic link between gold and silver. Despite fluctuations, gold prices have historically been around 16 times the price of silver. The logic behind this is simple: Gold is roughly 16 times more scarce than silver,according to the American Geological Institute. That is why almost every major world government in history set the value of silver at 1/16th the price of gold.

Based on this ratio, if gold costs $970, silver should cost around $60.60 ($970 ÷ $16).  As we write, silver costs only $19.80 an ounce. That means right now, silver is historically undervalued by more than 300%.

At the moment, gold sells at a price nearly 50 times higher than silver!

In the 19th and 20th centuries, major world governments stopped using silver as money. And even though the white metal remained just as precious, people didn’t see it as a “valuable” investment anymore. Many experts believe that under certain market conditions, silver prices rise faster than gold’s, until silver reaches its historical value of 1/16th the price of gold. We believe this could be about to happen again, because it happens almost every time inflation is high, people’s faith in the dollar is low and there’s a crisis going on. When inflation rears its head, Silver usually has a big jump in value.

This has been the pattern numerous times in the last century.

  • In 1914, at the beginning of World War I, silver cost 1/41 the price of gold. By 1919, it was worth 1/15th. And smart investors made 168% on silver in just 5 years.
  • In 1941, when World War II was raging, silver was at 1/96 the price of gold. By 1967, it was worth 1/16th. And silver investors made a whopping 488%.
  • In 1975, during ’s biggest oil crisis, silver cost 1/40th the price of gold. By 1979, it was worth 1/14th. Again, silver investors made 433% in only 4 years.

All the above time periods had this in common:

Investors didn’t trust paper money. They bought gold and silver to protect and grow their wealth.

As inflation starts to rear its head again, silver is the best way to profit. It still has a lot of catching up to do.

And the truth is,catching up to gold prices is just the beginning. That could give you a nice 300% gain, but the potential for silver as an investment over the next few years is even more convincing..

Right now, Americans are uneasy about the dollar, as it has tested historic lows again most major currencies lately. Oil, gas, and food prices have all gone up steadily in the last 5 years. And since the U.S. dollar has become the global currency for trade, any effect on the dollar reverberates through the world.

Right now, investors are finding comfort in gold. It is heading towards $1,000 per ounce. Some commodity traders believe Gold could get to $2,000 an ounce over the next few years.

During its last bull market, gold went from $35.12 to $306.68 — a gain of 773%. But silver shot up from $1.29 to $21.793 during the same period — an incredible gain of 1,585%.

Silver could continue to become more and more precious until it hits 1/16th the price of gold — its historical value.

Taking todays price of Gold $973, if silver reverts to its historical value, it could spike from $19.80 to $60.80, which would mean you could triple your money.

By buying the Silver Exchange Traded Fund , we get exposure to a fund that is tied directly to the price of silver. This ETF has already shown great gains in the last year, but we believe it has much further to rise.

Buy I Shares Silver Exchange Traded Fund (SLV:ASQ)

Disclaimer: All the information above is provided as a service for individuals and institutions. It should in no way be construed as a recommendation as an investment. Investment decisions should be based on the risk tolerance and planning horizon of the investor. Market participants must understand that past performance is also not a guarantee or predictor of future results.