Three days ago Leaf.ae published the “top 5 reasons why you should own Gold”, which received a lot of interest and over 500 likes just on Facebook! We decided to go ahead and publish the same for Silver. We tried to summarize the reasons as much as possible for our readers:
1# Poor Man’s Gold
Throughout history of money, Gold and Silver were the most popular forms of circulated money across all civilizations. Just like Gold, Silver is a great store of value, as it is portable, divisible, durable, interchangeable and limited in supply! But the key difference between Gold and Silver is the affordability and price ratio. History of money has shown us that it was the rich elite and upper class of every society that used Gold as money, whereas the majority of the middle class and lower class of citizens used Silver as a popular medium of exchange as it was affordable in comparison. While 1% of the world can afford to own physical Gold, the 99% can easily afford to own Silver. “Gold is rich man’s money, Silver is poor man’s Gold.”
2# Gold to Silver Ratio
History is important because it gives you a good understanding of today and a good indication of the future. The same can be applied in money. The historical ratio of Gold/Silver was 15:1, which means for every ounce of Gold, you could purchase 16 ounces of Silver. This ratio can change over time due to many factors such as supply/demand, but history has shown that the ratio always comes back to 15:1 and others claim 16:1. Guess what? the current Gold/Silver ratio is 70:1! which means that for every ounce of Gold, you could purchase 70 ounces of Silver today. This is a huge opportunity as Silver is considerably undervalued compared to Gold. If the ratio returns to 15:1, and we strongly believe that it will as it always has, we should see Silver prices move much much higher to almost 8 times of its current value. At leaf.ae we believe the upside potential for Silver as an investment is much greater than Gold in the coming years.
3# End of Silver Manipulation
Why is Silver so undervalued today? Several big banks have been suppressing the price of Silver (and Gold) by selling COMEX or Paper Silver Certificates that are claimed to be backed by real Silver bullion, but in fact they are not. While such banks inform customers their Silver holdings are safe and secured, the truth is, more Paper Silver is being traded today than existing physical Silver! Such manipulation is currently being exposed and will end very soon, according to our analysis. Deutsche Bank is currently facing a billion dollar lawsuit for its role in manipulating Silver and Gold prices. The bank admitted and announced it will cooperate in exposing other international banks. We will post more on this later!
4# Shrinking Supply
According to several reports and the World Gold Council, high demand on Silver coupled with shrinking supply has led to physical Silver deficit for the past three consecutive years. The gap between Silver demand and Silver supply is now 60% higher than the gap in 2014! Most of the growth in demand is industrial. If the status quo continues, Silver prices will have to skyrocket sometime in the near future.
5# Industrial Demand
Industrial demand on physical silver has been massively growing during the past few decades. Silver is incredibly conductive. Nearly all electronics you use on a daily basis contain or used Silver, whether it is computers, keyboards, watches, microwave ovens, calculators and even CDS/DVDS, these are just a few examples! In addition to that, Silver is being used for medical applications such as burning creams, bandages, implants, needles, dental fillings and much more! Other industrial requirements for Silver include: Photovoltaic (solar) panels, batteries, telescopes, nuclear reactors, explosives, 3D printing, semi-conductors, helicopters, photography, mirrors, washing machines, windows, cars, air conditioning and the list goes on without end. Such industrial demand on Silver is likely to continue and this only suggests higher and higher Silver prices.
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