Why Silver Is Better Than Gold
June 1, 2022
Why do you think that out of so many years, right now is a great time to invest in silver? One of many reasons is there seems to be a historic breakout for silver in India. Put simply, silver prices are beginning to cause a rise in terms of the Indian rupee but not in U.S dollars.
The movement of prices in India is exactly what I call a “stealth price discovery movement”. The increase in prices in rupee terms gives U.S. investors an idea of what investors within other finance industries are thinking by a look at the movement they understand that they can invest in silver.
In cases like this, Indian investors observe inflation as a cause for concern. Plus they see the silver metal as an answer.
In the past, silver has shown that it is to be a hedge against inflation in other types of asset costs. It serves as a store of value. Indeed, in today’s world that has debt-backed currencies with sovereign bond risk, silver is poised to return to its valuable metal value, joining gold as a currency with no debt default risk.
As worries of inflation sweep across India’s economic climate, that nation’s silver market keeps recording new record highs. At the same time, the silver price in the U.S. economy has also proven early signs of waking up. This can make investors would like to look at the market and invest in silver.
Silver is currently cheap when priced in gold. This has happened because the yellow metal has been setting new minimal high prices this year though silver was unsuccessful to follow suit. This particular price divergence between silver and gold has attracted some traders, who might try to position a trade that is based on the ratio between gold and silver as quoted in silver oz.
In this type of trade, the possibility exists to earn money as silver goes up or as gold comes down in price. Silver has been trading at a typical ratio of around 61 oz of silver to one oz of gold. At the moment, the trading percentage is roughly 65. This lets us know that silver is reasonable compared to yellow metal at present prices.
Throughout the Hunt Brothers pricing bubble, silver reached an all-time low ratio of 17 ounces to one oz of gold.
The extraordinary characteristics of the 1980 price move caused by the actual Hunt Brothers are most likely the reason why silver has yet to have a price breakout, at least not within U.S dollar currency calculated in rupees. Silver is currently trading at a record high and it’s certainly looking good for traders who want to invest in silver.