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Wednesday, January 06, 2016

3 charts: investing in silver is a bargain

http://secularinvestor.com/3-charts-investing-in-silver-as-a-bargain/12933/

Silver and gold are not undervalued according to their production cost, but they are undervalued as a store of value. Markets forgot this, since we live in a risk-free world. Investing in silver and gold seems a no-go zone. But there is no such thing as a free lunch. This limits downside risk but it provides a high upside potential.
The price of oil has an important impact on the price of silver (in this article we highlight silver, but the same goes for gold). The beaten down silver price as a store of value makes it depended to oil prices.
Energy is the key reason that drove the value of most assets for centuries, and it still does. This means silver has the power to rise significant in the next financial crisis. And there will always be a new financial crisis.
The price of silver has moved in tandem with the price of a barrel of oil for almost a century.

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