Decide What Is Better To Invest In – Gold Or Silver
Wed, Jan 30, 2013
Invest In Gold And Silver Mining Stocks
Gold and silver are still in long run bull markets.
Both have had great runs over the past few years. Gold has risen from $300 an ounce to more than $1600 an ounce today. Silver prices have risen from $5 to now more than $30 an ounce. Both have still plenty more capital appreciation potential.
The key question investors looking to jump on the precious metals bull market is whether gold or silver is a better investment right now.
Gold or Silver: The Simple Solution
The hands-down best way to decide whether gold or silver is a better investment is to look at the long-run gold/silver ratio.
The ratio is determined by looking at the number of ounces of silver can be bought with an ounce of gold. For example, if gold is at $1500 an ounce and silver is at $30 an ounce, the gold/silver ratio will be 50 (1500/30).
The below image of the gold/silver ratio from GoldSilverDoctors.com reveals a lot about whether gold or silver is the place to put your money now
The midpoint of the ratio has been around 50 for the past three decades.
So the time to buy gold is when the ratio is below 50. Since when the ratio is below 50 it means silver prices are running a bit too high relative too gold.
And the time to buy silver is when the ratio is above 50. Since when the ratio is above 50 an ounce of gold buys more ounces of silver than usual.
This ratio analysis is a great way to compare gold and silver on a purely relative basis to one another. And it will lead to much safer and more profitable gold and silver investments.
A Low Volatility Precious Metals Investment Strategy
Of course, we tend to look at Gold And Silver Investments as long term investments in the current climate.
As a result, we’re less concerned about the short-term movements of both and just look as those short-term swings as opportunities to add to both our silver and gold investments.
When gold is undervalued relative to silver, a wise investor will buy gold. When silver is undervalued relative to gold, a wise investor will buy more silver.
When it comes to picking Gold And Silver, an investor must know where to invest in gold and silver. Besides, we’re in a long-term bull market for both of them. As a result, buying gold and silver is more important than which one is bought. But by using the gold/silver ratio analysis to guide your precious metals purchases, you’ll be sitting on a larger stockpile of gold and silver when the bull market reaches its final euphoric bubble stage.
With Contrarianinsights.com, You can get all strategy to invest in gold or silver That time and only that time will be tough to sell. You’ll know when we’re at that point because you’ll have made a fortune off of gold and silver, the greed you feel towards more gains to come will be intense, and, even though it will be the best investment decision you can make at the time, selling an asset that has treated you so well will be the toughest trade you ever have to make.
Executive Editor, Contrarian Insights
The Group of Big Investors in United States.
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