Is time running out to buy silver bullion in 2020?
Are you interested in saving money? Are you concerned like many people about the future? Is your job situation uncertain?
Then this video is for you. In it, we look at why I buy physical silver - explained.
I'm going to be focusing on the reasons silver is likely to jump in price, the benefits of owning it, the pitfalls to avoid when buying it and how the stock market and history that suggest a bull run on silver is approaching quickly. In my own journey, I started to buy physical silver around five years ago and like many investors it's my metal of choice due to its low cost.
Gold & Silver is simply a store of wealth. It protects your purchasing power, however it doesn't give you any return annually and you don't receive rent or dividends like a house, stocks or business would pay you.
After 20 years, you will have received no income from your metal, and you didn’t earn any rent or dividends on it either. But you don’t buy metals for an income, you buy them as a way to preserve the purchasing power of your savings.
Gold to Silver Ratio refers to how many ounces of silver it costs at today's price to buy 1 oz of gold
In 1970, it took 18 oz of silver to buy one ounce of gold.
In 2000, it took 55 oz of silver to buy one ounce of gold
In 2020? It took 115 oz of silver to buy 1 oz of gold
June 2020: Due to silver's price increase, it now takes 99 silver ounces to buy one ounce of gold.
The average gold to silver ratio over the last 20 years has been about 70 oz of Silver to 1 oz of gold
This leaves many people wondering what’s going on right now with silver? If the average has always been around 70:1, then why is it 99:1 today? Why was it 125:1 in March 2020?
I believe that silver is undervalued right now with the current economic situation. People are rushing to gold just like they always have done during times of financial uncertainty and silver simply hasn't caught up yet, but it will eventually and as I demonstrate in the video, when the gold: silver ratio has been this high, silver historically has outperformed gold 5% per annum in the years that follow. Add to that, silver is going to be used increasingly in electric vehicles during the next decade or so, putting further upward pressure on the white metal's price. The thing to understand about silver is that it’s mainly an industrial metal, so the metal gets used more and more every year, in line with technological & industrial advancements. Combined with this, it's also getting more and more expensive to mine it now that its depleted reserves are harder to remove from the ground.
Silver jewellery is the exception to this in that it doesn’t tend to get lost very often, but that only accounts for less than 30% of that 80% just mentioned.
DISCLAIMER
This video is for entertainment purposes ONLY.
I am not a financial advisor, accountant or lawyer. These videos shall not be construed as tax, legal or financial advice and may be outdated or inaccurate; all decisions made as a result of viewing are yours alone.