The Silver Advantage

Silver was the very first metal used as currency in Ancient Greece 4,000 years ago. However, for retirement portfolios – including IRAs and 401(k)s – silver offers much more than its record as one of the world’s great currencies.

Here’s what makes silver a valuable asset:

Silver is without peer in conduction of heat and electricity. That makes it an essential element in product manufacturing. There’s a high demand for silver.
Silver enjoys a universal diversifying appeal similar to gold. That means it has the capacity to rise during stressful periods of economic and geopolitical turmoil.
Those benefits make silver a dynamic resource with the potential to reward portfolios in both favorable and unfavorable economic conditions.

But these are the not the only reasons retirement savers should consider silver in their portfolios. Here are 3 more:

SILVER HAS ECLIPSED GOLD DURING PRECIOUS METALS BULL MARKETS

Many savers instinctively believe silver is less valuable than gold in a savings portfolio. However, silver has been known to deliver even greater returns than gold.

Jan. 1970 to Jan. 1980. With double-digit unemployment, inflation and tremendous geopolitical upheaval, gold soared 1,500%, but silver skyrocketed a stunning 2,100%.
2001 to 2011. This precious metals bull market was energized by worldwide economic and geopolitical stresses, including the Global War on Terror. Gold’s impressive 600% increase was trumped by silver’s remarkable 950% surge. (See chart below.)

DEMAND FOR SILVER IS GROWING

Growing silver demand around the world is driven chiefly by its near-irreplaceability as a key component in many products, and there’s no end in sight.

Industrial demand for silver accounts for about half of its global market:

Silver particularly has great utility in the automobile, appliance, computer and cell phone industries.

A middle class is emerging in developing nations such as China and India. As greater numbers of citizens can afford products using silver, demand will likely grow.

Silver also is a central component of many 21st century green technologies, such as solar energy.

This growing worldwide industrial demand for silver to support life’s necessities means it can be a useful asset no matter what’s happening in the economy.

G/S RATIO: SILVER IS AN EXCEPTIONALLY GOOD VALUE RIGHT NOW

The gold-to-silver ratio measures the ounces of silver one ounce of gold could buy. Experts say the higher the ratio, the greater the likelihood silver’s price is below its true value.

The chart below illustrates two periods – mid-2003 to early 2008 and late 2008 to early 2011 – when the gold-to-silver ratio approached 80 and then subsequently dropped significantly. In each of these cases, when silver fell from what was regarded then as a lofty perch as measured by the g/s ratio, the metal’s price around those periods jumped well over 300%. The ratio subsequently rose again as far as 100 — the highest it's ever been.

The ratio generally has risen since 2011, which means silver still has the capacity to provide a healthy margin for potential growth. There's still time to buy!

GOLD-TO-SILVER RATIO SINCE 2000

CALL AUGUSTA TO LEARN MORE ABOUT THE SILVER ADVANTAGE

Augusta educators and agents are highly knowledgeable about this very special metal, including all the factors that may have influenced its price performance. Learn more about silver and how easy it is to add it to your portfolio! Contact Augusta Precious Metals at 800-700-1008.