Consider the fact that Silveroutperformed Gold almost 2.5:1 at India's Multi Commodity Exchange (MCX) till this year and you will understand why silver is the new gold.
Silver grew by more than 26% since January this year compared to just over 11% for Gold. Silver prices rose from 46250 from January to 58473 as of July 16, an increase of 26%. During the same period, Gold rose from 20740 to 23071, an increase of just about 11%.
Here are five reasons why you should invest in silver:
--The demand for silver from India and China is straining global supplies. China has gone from a net exporter of 100 million ounces of silver to a net importer of 150 million ounces of silver.
--Silver available above the ground is in fact far scarcer than gold. And unlike gold, about 44% of silver production is used for industrial consumption.
--Over 76% of large speculators in COMEX have become bullish, up from 70% a month ago. The ISharesSilver Trust have increased their silver stock by 1% to 9633.5 tonnes.
--Silver has historically traded at 16:1 ratio with gold. The current level of 40:1 is considered an extremely bullish signal by many. The demand from silver ETF’s are growing in view of this “cheapness” in silver prices.
--And finally, as mentioned earlier, silver grew 3 times more than Gold this year which clearly shows increasing demand from consumers far outstripping that of gold.
With concerns of Euro zone debt problems and US credit rating still continuing unabated, it is only natural to assume that for silver, the only way ahead is upward.
Silver was the star performer at Multi-Commodity Exchange of India (MCX) according to the latest data released by Forward Markets Commission for May 1-15 2011. The total volume of silver traded was 57540.78 mt valued at Rs 3,36,1144.871 cr compared to gold which came second at 514.59 MT valued at Rs 113983.909 cr
Silver grew by more than 26% since January this year compared to just over 11% for Gold. Silver prices rose from 46250 from January to 58473 as of July 16, an increase of 26%. During the same period, Gold rose from 20740 to 23071, an increase of just about 11%.
Here are five reasons why you should invest in silver:
--The demand for silver from India and China is straining global supplies. China has gone from a net exporter of 100 million ounces of silver to a net importer of 150 million ounces of silver.
--Silver available above the ground is in fact far scarcer than gold. And unlike gold, about 44% of silver production is used for industrial consumption.
--Over 76% of large speculators in COMEX have become bullish, up from 70% a month ago. The ISharesSilver Trust have increased their silver stock by 1% to 9633.5 tonnes.
--Silver has historically traded at 16:1 ratio with gold. The current level of 40:1 is considered an extremely bullish signal by many. The demand from silver ETF’s are growing in view of this “cheapness” in silver prices.
--And finally, as mentioned earlier, silver grew 3 times more than Gold this year which clearly shows increasing demand from consumers far outstripping that of gold.
Silver was the star performer at Multi-Commodity Exchange of India (MCX) according to the latest data released by Forward Markets Commission for May 1-15 2011. The total volume of silver traded was 57540.78 mt valued at Rs 3,36,1144.871 cr compared to gold which came second at 514.59 MT valued at Rs 113983.909 cr
