iShares Silver Trust (SLV)

[americano]

Why Silver is a Better Investment Than Ever Before

Silver is currently undervalued compared to gold for a variety of reasons, and is set to continue to rise in price. Silver could easily triple in price in the next three years.
The Gold/Silver Price Ratio

The ratio of the price of gold to silver is often looked at by investors. If the price of silver was $10/oz and the price of gold was $100/oz, this would be a ratio of 10. Over the past century, the ratio has been as low as 16 and reached a high point in 1991 at 89.31 for the year. The ratio has recently been dropping, with the silver price gaining on the gold price, and as a result some experts are expecting the price of silver to fall relative to gold.

Historically, however, the ratio has been much lower. In the 11th century, gold was only 10 times the price of silver. For 873 YEARS the ratio was 16 OR LESS! Based on today's gold price, if the gold/silver ratio returned to 16, the price of silver would be $90, or nearly triple what it is now. The fundamentals of the silver market suggest just such a move.