Is Silver the New Gold?

Silver is a highly lustrous white metal and element found naturally and in combination with other elements such as zinc, copper, and gold. It has the highest thermal conductivity of any element, and the highest electrical conductivity of any metal. It is used in jewelry making (it is slightly harder than gold), electrical contacts, and high end audio cables.

In what is being seen as a major world wide recession with stock prices plummeting and real estate prices in flux, precious metals are being seen as a safe, traditional way to invest resources. While gold and silver have both benefited from this perception, gold, in recent months has been much more visible in the media and elsewhere, and has been seen as making astronomical gains. While gold has increased more than 80 percent since 2003, silver has seen its value go up by more than 200 percent.

World demand for silver, especially in high-tech industries, is far outstripping supply, so it would appear that prices can only continue to rise. Add to that the fact that over the years the United States government has been dumping its silver reserves and thereby depressing the market. The US is out of reserve silver and is now a buyer. This is just one more indication that silver may well be a great investment opportunity.

Over the last fifteen years it has taken, on average, sixty ounces of silver to buy one ounce of gold. But from the years 1350 to 1850 you only needed fifteen to twenty ounces to buy one ounce of gold. This is once again another indicator of silver’s potential to be the new gold.