It was only a little over 4 months ago when I suggested to a few (not enough) people that they pick up some silver while it was still only $30/oz.
So four months ago, I said it might be too late in six months. Well, it's been over four months, and while the price of silver has managed to rise 36% in that time, this does not mean it's too late. I'm not going to cover all the reasons silver has a long way to go, but I will share with you a graphic I came across recently at http://goldcoinscanada.blogspot.com/2010/12/case-for-silver-simple-approach.html.
|Silver coming back after being suppressed; see Buy Silver Crash JP Morgan for an introduction on how silver & gold has been suppressed by global Mega Banks.|
As you can see, over the last 30 years, silver is actually down, 25% (in December 2010, today silver is over $40/oz)--it has a long way to catch back up to it's precious metal cousins. Historically, it usually took 15-20 ounces of silver to buy an ounce of gold; in 1980, this ratio was 21.25 ounces of silver to 1 ounce of gold. Over the last 6 months this ratio has dropped from upwards of 58:1 down to close to 36:1. In all likelihood, silver is going to continue to catch up to it's historical norm, which mean's, even if we took $1500/oz gold (currently $1457, in all likelihood, $1600+ by year end) that would equal $75/oz silver (20:1)$100/oz (15:1), though there's no saying exactly how long it might take silver to reach these historical norms once again. Something else to keep in mind is that countless commentators and investors, much wiser than I are saying that $2000/oz & $5000/oz gold is in our future, maybe even before the decade is out.
|6 Month Gold/Silver Ratio|
On December 2, 2010, gas jumped up to about $0.94/L--a 50 litre fill costing $47 or 1.6oz of silver; fill up 50 litres tonight and that would cost you $54.95 ($1.099/L) or 1.4oz of silver today. With oil prices likely reaching at least $150/barrel before the year is out, in my estimation; prices of almost everything will be affected, that's basically anything that travels to get to you (that's why I also recommend joining a CSA today so you can feed your family with food grown within 50 miles of your dinner table).
It's really quite easy to get on the road to preserving your wealth, by buying silver, rather than losing it to the hidden tax/bondage chain of inflation. There are 6 or 8 coin shops in Edmonton, with silver on hand, you can buy 1oz or 1000oz, and they'll buy it back from you whenever you choose to sell. If I would've know how easy and un-intimidating it was to buy silver from a shop, I would've done it four years ago when silver was still under $13/oz. Don't let yourself miss out on what is still a great opportunity to preserve some of your hard earned wealth. Share this with your family and friends so they can protect their money too.