SEP 13, 2017
The spot price of silver has been largely dormant for the past several years, hitting lows on multiple occasions since its last peak in 2011. But does this mean silver has found its equilibrium — or is silver actually undervalued at this time? Should you be buying up silver now to be ready for the next time it surges?
Join Greg Hunter as he goes One-on-One with Rob Kirby, founder of KirbyAnalytics.com, to discuss the current state of precious metal investments. Rob Kirby, a forensic macroeconomic analyst says people should be looking to buy gold and silver for protection because it’s still relatively cheap compared to the exploding value of some cryptocurrencies.
But he is particularly high on the price of silver. In fact, he believes that silver owners could be the biggest beneficiaries of a future market correction or a major economic event.
Kirby explains, “When you look at the price differential between silver and gold, you see an ounce of silver selling for around $18, and you see an ounce of gold going for $1,340, and that means you would need to sell 75 ounces of silver to buy one ounce of gold. The ratio in nature suggests you should be able to sell eight ounces of silver to buy one ounce of gold. This tells me one of those two prices is very wrong. Either silver is too cheap or gold is too expensive. I don’t think gold is too expensive because I think it’s undervalued too. That leads me to believe that silver is insanely priced and probably the most underpriced asset on the planet…I think silver will be going up in price much more than gold, even though gold is going to go up in price dramatically.”
His analysis closely tracks what GoldSilver has found historically. Past studies by our own Jeff Clark show that silver prices don’t always go up when the price of gold does. In fact, it is normal for silver to remain dormant at the start of a gold bull market. But when it does start its upsurge, silver’s return value (as a percentage of its starting value) surpasses that of gold nearly every times.
This “delayed boom” is why we agree with the assessment that silver is undervalued at this time. We know that silver isn’t going to lay flat forever. And when it does start to swing upward, the swing is going to travel high. Investing in silver now is likely to lead to great returns when the next bull market begins.