Analysts and politicians would lead you to believe that our economic outlook is still souring, however they aren’t telling the whole story because of their own agendas. The global economic outlook is actually positive, with manufacturing steadily on the rise, unemployment down and the crisis in Europe will undoubtedly experience easing through stimulus efforts.Add that to the fact that the value ratio of gold to silver is completely out of whack right now, and you have a winning recipe for silver to respond bullishly, and a potential wealth creation for investors of the precious metals market. Stephen M Smith who is the managing member at Smith McKenna has been accurately predicting macroeconomic trends and following the precious metals market for over two decades. Smith firmly believes that silver is going to emerge as the leader in the next few years, potentially making a lot of people very wealthy.
It’s the perfect time to invest in silver. Mostly because its current mid $20s spot price is attractively affordable for first time investors, creating low barriers to entry and risk, but also because if we can count on history repeating itself like it always does, silver will close the roughly 58 to 1 ratio gap to gold, being underpriced, to a more common and predictable say 30 to 1. The key however is to own the physical asset, rather than derivatives, futures and ETF’s.
Most people put off learning how to invest in silver and other precious metals due to fear or uncertainty, but really they should be a part of anyone’s investment portfolio because of diversification, investment quality, and as a hedge against inflation. Commodities are not infinite in supply, and silver is largely tied to its industrial demand and applications. Silver is a necessity metal and is used in all kinds of electronic, pharma, and solar panel production. Above ground supply of silver is limited, only up just over 1% last year according to The Silver Institute, and with global production of these products not slowing down it’s likely going to create scarcity; driving the price of silver due north.