According to Luke Burgess who runs a metal based trading service, the ratio of the gold to silver price over its 5,000 year history is 16-1.
Back in 2011 the ratio was double that, at 32 -1.
Right now, it is at 75-1. Yes you read that correctly.
With gold currently around £800.00 an ounce, silver should be around £50.00 an ounce and yet it is just under £11 an ounce.
If silver were to move from £11.00 to its 5,000 year average of £50.00 that would certainly make silver investors smile. that’s a rise of 500% and it’s even then only back to its norm.
I really like silver but getting into silver does have some drawbacks which put people off.
Physical silver attracts VAT, now 20% in the UK and buying certificates often requires a very high level of investment, although it does solve the VAT problem. Anyone interested in taking a position in silver might therefore consider buying into mining stocks as part of their overall plan. In theory, if the silver price rises, the mining stocks value should increase far more than the increase in the spot price, in some cases double or triple the spot price would not be considered out of the ordinary.
Anyone interested in silver should certainly take a look at the DVD of my recent seminar which tells you how to buy silver and legally avoid vat. It will show you how I currently buy my silver at rocks bottom prices but still take ownership of brand new uncirculated “coins of the realm”. These silver coins have the enormous advantage that they do not attract capital gains tax if the price rises. It’s important to buy the right coins or you could end up paying more tax than you need to.
I believe silver will do very well over the next few years – which is why I have been buying heavily over the last few months. And the great thing about silver is you can start your collection without having to invest a huge sum of money.
I recently ran a one day seminar on silver and why I am buying it now. We had a film crew there there is now a DVD available if you are interested.
For more details click here.
Last update: 20.2.15