While the idea has popped up in the media a few times in the past couple months, it appears that more analysts are stepping forward to say that the time to buy silver has come. Analysts believe that silver is going to be outperforming its yellow metal cousin in the long run.
In a recent interview with The Economic Times, the CIO of Swiss Asia Capital, Juerg Kiener, gave word that he sees gold prices on the rise in the short to mid-term, but that silver is what should really be catching the eye of investors around the world.
Gold and silver frequently compete for attention in the hard assets department, but what many are coming to see is that silver is actually highly undervalued and set to take off soon. The investing public, according to Kiener, still holds relatively little gold. He sees that as an area of future growth due to currencies losing their value and general economic volatility around the globe.
Kiener suggests that it is time to buy silver because, as "the poor man's gold," silver is a good choice due to its usefulness in industrial applications. The fact is, its market is much smaller, and that once gold is priced too high for investors to buy, they will turn to silver.
Gold prices have been predicted to hit incredibly high levels per ounce, depending upon whom one listens to, with prices striking anywhere from $2,000 an ounce to $10,000 an ounce by 2015. If what Kiener states about the global economy proves to be true, investors are almost certain to take gold and silver more seriously as investments that can assist them in protecting their wealth.
Mincing no words, Kiener told his interviewer something more analysts seem to be hinting at without saying director, "So for people who are not able to afford gold anymore, silver becomes very attractive. So we are looking at silver to outperform gold over the next two, three years."
That is a bold prediction and not one that all investors or economists will agree with, but it seems to be a plausible line of thought given all the recent global instability. Central banks can print more money, but even they are shoring themselves up by purchasing massive quantities of gold and other precious metal assets in order to protect themselves.
All of these indicators do not exactly point to a booming economic recovery across the globe, especially as the juggernaut China begins to see its impressive growth slow quarter after quarter. Investor confidence remains uneven too in big stock markets such as in the United States.
Obviously, no one can predict what the future will bring, but if Kiener and others of his mindset are right, then silver is likely to see a truly impressive rally.
The good news about silver is that its price is so low that even first time investors with very little to spend can afford to own an ounce or two right away if they buy at today's prices. This is a nice spark of hope in what might otherwise look like a dismal economic picture around much of the world today.