Is Silver Over Already?
Now many people are saying, 2011 was the peak for silver. That was it. Party is all over with. Silver will be going down forever like now.
Nothing can be further away from the truth. 3 charts will show you the cold hard evidence that disillusioned investors waiting to get rich quick do not see.
- DOW/Gold Ratio
Now we see how much stocks you can buy with 1 ounce of gold.
A high number mean gold is over-valued and a low number means gold is overvalued.
As this shows in 2011, gold went to undervalued territory. But in 2015, we went back to SEVERELY undervalued, because too many people are in stocks and it is in a bubble!
Without exception, everytime the stock market visits over-valued, it will have to visit under-valued territory to correct before the bull market comes again.
The stock market has to come down!
Therefore, Gold will not stay these undervalued levels for very long as people realized how much money the governments have printed, especially in MALAYSIA!
2. Gold/Silver Ratio
Now we know gold is already SEVERELY undervalued. How about silver?
The natural ratio for gold and silver is 1 to 15. For mining, we are getting 10 ounces of silver out of the ground for 1 piece of gold. But why is the silver price 75 times cheaper today? This cannot last long as silver is SUPER SEVERELY undervalued.
Gold is going to do great. But if you buy silver, when it revert back to under 20 eventually, you are probably going to do 7-8 times even better than gold! Imagine finally being able to own that dream house that is 7-8 times bigger than your current house!
3. Silver Inflation-Adjusted Price Chart
This means we adjust the price of silver according to the purchasing power of currency today since RM5 today is different from RM5 in 1980.
Compared to the peak in 1980, the $48 high in 2011 was so small that you cannot even see it. In fact, silver would need to top $470 to beat 1980.
What bull market ends before it hits its highs of 35 years ago? Which asset class has not reached its previous highs before ending? NO! No bull market ends that way. This bull market is not over and the best is yet to come. For everyone else not investing in this silver story long-term, I pity them.
In conclusion, if everyone agrees with a investment decision, then it's probably not a good one. Before you write off silver and go to invest your hard-earned money on the next hot penny stocks in KLSE, remember a quote by legendary banker, Baron Rothschild:
The silver market is bloody with hurt investors abandoning it and no one cares about it right now. That is the opportunity for smart investors to get in now. That is where money is made for the real long-term value silver investors.
If you do decide on buying any silver bar today, check out our brand new 3 oz Turkish Nadir Silver Bar to get in the undervalued silver market at the lowest amount around RM200++ . We provide FREE SHIPPING within all Malaysia including Sabah & Sarawak for it!
Besure Pte Ltd is a Singapore registered bullion dealer offering GST exempted silver bars for savings and investment within Malaysia. We guarantee our silver bars' authenticity by the Besure Certification Process™. It allows Malaysians to invest in our silver bars with the ultimate peace of mind. Like Our Facebook Here!