Dateline March 31,2016: Both gold and silver have had an incredible run up during the first quarter of this year. Gold has outperformed silver so far in 2016. But going forward, silver may have better prospects for continued price appreciation.
Reasons why silver is a good investment now, especially as compared to gold, were recently outlined by Caiman Valores in a Seeing Alpha article. If you agree with his reasoning, now is a great time to buy silver.
Silver Investing Opportunity: A View from Seeking Alpha
The Seeking Alpha article is entitled “Silver Is Now A Golden Investment Opportunity”. The author believes that silver “remains undervalued” and is now (March 2016) “a solid long-term opportunity for investors seeking exposure to precious metals.”
The main points supporting his view are:
- Silver has been the lagging gold in the recent run-up in precious metals so far in 2016.
- The gold to silver ratio, a key indicator of the relative value of silver, has expanded greatly, indicating that silver is sharply undervalued.
- Growing industrial demand for silver, especially by the use of silver in solar energy technologies, will drive higher demand.
- Additionally, capital investments by silver mining firms has been greatly curtailed of late, which will cause production of silver to fall going forward.
Your Silver Investment
The article by Caiman Valores makes a series of good points supporting the undervalued nature of silver. It represent a good buy for knowledgable investors.
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