At least if we look at some fundamental data such as the ratio of gold production to silver production together with the ratio of the gold price to silver price or the grade of industrial use of both metals. Then, one quickly finds out that compared to gold, silver has a tremendous catch-up potential.
Back in 2001, keen, almost as diehard labeled “experts”, advised to invest in precious metals after the first bubble of the 21st century, named the “dot com” bubble, had burst with great hullabaloo. From the datahighway of the internet boom to the dirt road called gold and silver? – They were all laughed at back then! Ten years later the laugh got stuck in the throat of many. In the as “lost decade” labeled first ten years of the 21st century, the precious metals developed – and to a big part the associated industry – to an investment class that could defy most of the international indices. From US$ 250 to US$ 1,900 in 10 years – an easy sevenfold increase – the bulk of the investors who bet on investments outside the precious metals sector could only dream of it.
Such a performance could be achieved by investing in only the absolute conservative physical gold which many critics claim that it doesn’t bear interest (in the age of negative interest rates it should read “that interest is not charged”), does not propagate and is considered as disreputable, because it is (was) prohibited in many countries in the world. Mind you, being privately owned! To say nothing of the profits realized with just a few precious metal stocks. Profits of up to 20,000% were quite possible.
Read more here in free download: https://www.resource-capital.ch/fileadmin/reports/2017/final_DS_Silver.1_en.pdf
Jochen Staiger - CEO - Swiss Resource Capital AG
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