A calculated risk in financial markets means you take chances when the odds are in your support. That way when you invest, you have a best chance of earning money. You never get a guarantee, definitely, but when we get best odds, we make the bet.
Today, we are going to present you an amazing chance in the valuable-metals market. It is a trade where the odds are in your support as it will present you. And it is a trade that I have put my own cash into.
If you purchase 1 Kg of gold today, it will cost you 74kg of sliver. In simple words, gold is 74 times more worth than silver. That’s happened only 3 times in the last fifteen years. It is extreme. And generally when the gold-to-silver ratio hits high levels, 2 things happen.
First, you view prices go up period in 2008, when the ratio hit eighty, silver soared. In 2002, silver railed closely hundred percent. In 1991, the metal gained over forty percent.
Second, slivers price climbs quicker than gold prices.
Silver is too low
Gold is a valuable metal with generally investment demand. Investment demand denotes people own it because they trust gold price is going to rise up.
Silver has 2 sources of demand because it is valuable metal and industrial demand. For instance, it is used in solar power, to make power circuits and as catalyst in chemical reactions.
About fifty six percent of silvers use goes to industrial demand. As an outcome, prices are sensitive to industrial demand. That’s why silver and gold don’t trade strongly with each other.
Another factor is that silver is rarely found on its own. As much as sixty six percent of silver comes as a by-product of zinc, lead and mining copper. Silver supply goes up when firms are raising mining of these metals. Because of this, silver prices go low, even when gold prices are increased.
Supply would not keep up
Copper-zinc lead trading low because of these failing prices, mining firms have slashed production of these metals. Not amazingly, silver production is set to drop as well. Capital Economics, as well-valued research firm, guesses that production is going to fall 9.2 percent in 2016 and 13 percent in 2017.
Anyway, demand for silver is powerful. Investment demand is up four hundred percent from under fifty million ounces in 2006 and two hundred million ounces in 2015. Investment demand is going to keep high because of bad interest and money instability causing doubt in paper currencies.
What’s more, industrial demand for silver is guessed to increase 3 percent in 2016.
Rising demand, shrinking supply, the silver-gold ratio is above seventy – a stage where silver rises from past history. 1, 2, 3, the stars are associated for the metal to rise. How top? The price of silver could go to $30 per ounce at least ( currently it is around $17 ), which is about eighty percent from its present price.
Good odds for large gains
This is a type of trade you should love to put on. The odds are in your support. Definitely, there are no sure things in investing, but I trust silver is a rock-solid bet to go up from its present price.
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