Is Silver a good investment option ?
Besides Gold, Silver is favourite among many collectors. Chemically, Silver symbol is Ag, while Gold is Au. Both of these precious metals share similiar electronic structures, they are electrical conductor, non-corrosive and easily formed.
Unlike Gold , one key characteristic of Silver is that it perish and become irreplaceable during the process of making or forming. This has inevitably create a demand and supply problem.
As both industrial and precious metal, silver find its widespread use in the telecommunication and information technology industry especially in mobile phones, computers. Silver has been long use as everyday’s money. Nowadays, more and more people have started to accumulate silver in the form of coins and bars, where 1 ounce(oz) bullion coins or 10 ounce(oz) bars are most common. Silver contracts are even traded in New York and London Metal Exchange.
Is there a correlation between Gold and Silver in terms of the price movement ? It will be an affirmative Yes. Price of Gold to Silver is historically stand at 16 times. It means that 1 oz of Gold is worth 16 oz or 1 lb of Silver.
Recent trends see price of gold soar through the ceiling. At the time of writing, the following are the spot price for gold and silver. Gold = USD1,755 / oz, Silver = USD 33.58 /oz .
As the price of Gold to Silver now stand at 52.3 times, it is the Gold over-priced or the Silver being grossly under-valued ?