Friday, October 23, 2009

Silver is lining its own future

As gold continues to get a lot of press, silver quietly widens its undervalued gap in relative value, lining its future with, yes, silver. As the precious metal market chatters a buying message, it is apparent silver's indifference to adjust to gold’s bull run is going to come to an end.

Unlike gold, silver is widely used as an industrial commodity. Its use in jewelry and electronics has declined in the recent recession and new applications as an anti-microbial and other new to market uses has silver slated for a heavy rebound.


An historic price adjustment will bring this statistical disparity to a close. The silver/gold differential will revert to the mean, to the benefit of owners of silver assets. The bottom line: silver’s price performance historically holds a close correlation to gold’s price performance.

In early 2008 gold's market value was averaging $1000 per ounce and silver peaked at approximately $21 per ounce at the same time. Gold today is at or near record levels and silver took a fall to approximately $10 per ounce at the beginning of 2009 and has precipitously rebounded to $17.50 per ounce today.
Silver is lining its own future.

Coin Mercantile’s silver coins are priced very competitively and we have a unique selection of modern world silver coins. It is our strong believe that silver on a per ounce basis is likely to double in the next few years with global population growth driving and accelerating the world’s demand for precious metal commodities. Silver, in our opinion, will be one of the greatest beneficiaries.

With the mind of an investor, try our collector picks like the heavily in demand and pictured here 2009 China Silver Proof Kilo 60th Anniversary of the Founding of The Peoples Republic of China. And through the eye of a collector, consider the 2006 Spain 50 Euro Christopher Columbus- 5oz Silver Proof. A silver lined future is a bright one for the foreseeable future.

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