Silver Undervalued Versus Stocks, Bonds, Property and Gold

By: GoldCore

Precious metals continue to look  very undervalued vis a vis most asset classes – particularly stocks and bonds.

This is especially the case with silver which has fallen by more than 70% from what we believe was an intermediate price high of $49 in 2011 – despite surging demand for silver bullion coins and bars from canny buyers investing in silver.

Silver Eagle Sales – Full Year 1996 and First 19 Days of 2016

Silver is currently trading at just over $14.25 per ounce – 1/77th of the price of gold at $1,100/oz. GoldCore continue to believe that silver will surpass its non-inflation adjusted, nominal high of $50 per ounce in the coming years. Indeed, we believe that silver will surpass its inflation adjusted high or real record high of over $150 per ounce in the next 5 to 7 years.

We are currently doing a research note on silver which will outline why we are so positive on silver.

In the meantime, let us whet your appetite and give you an understanding of the rationale for our bullishness. Steve St Angelo of the SRSrocco REPORT has just done an excellent blog with three very interesting charts which contribute to our positive outlook for silver bullion.

Silver Eagle Sales – 1996 (Full Year) Versus 2016 (Full Year)

He points out that

In 1996, total Silver Eagle sales for the year were 3,466,000. Now compare that to the 4,950,000 Silver Eagles sold in the first half of January. We must remember, Silver Eagle sales in 2016 started on January 11th. So, in just six working days (this Monday was a holiday), the U.S. Mint sold 43% more Silver Eagles than all of 1996. 

Furthermore, if we compare sales of Silver Eagles in 1996 versus 2015, this was the result:

Investors purchased a record 47 million Silver Eagles in 2015 compared to 3.5 million in 1996. Basically, investors bought 13.5 times more Silver Eagles in 2015 than they did in 1996.

This next charts compares the 20-year change of silver investment versus Jewelry and Silverware demand:

Silver Investment & Jewellery Demand – 1996 (Full Year) Versus 2015 (Full Year)

In 1996, total global Silver Bar and Coin investment was only 23 million oz (Moz) versus 264 Moz of Jewelry & Silverware. However, 20 years later… we see a much different picture. While global Jewelry & Silverware demand increased to 280 Moz, Silver Bar & Coin investment surged to 236 Moz.

Steve’s blog in full and charts can be seen here

Precious Metal Prices

22 Jan LBMA Gold Prices: USD 1,097.65, EUR 1,012.55 and GBP 769.63 per ounce
21 Jan LBMA Gold Prices: USD 1,096.80, EUR 1,006.98 and GBP 774.99  per ounce
20 Jan LBMA Gold Prices: USD 1,093.20, EUR 999.73 and GBP 771.08 per ounce
19 Jan LBMA Gold Prices: USD 1,087.00, EUR 999.77 and GBP 759.79 per ounce
18 Jan LBMA Gold Prices: USD 1,090.45, EUR 1,001.06 and GBP 763.67 per ounce

Breaking Gold and Silver News Today – Click here

Silver bullion coins – like Silver Britannias (CGT Free) Nuggets (Kangaroos), Eagles and Maples and are great forms of insurance against currency debasement and financial collapse. They also make very nice gifts for loved ones and are a great way to pass on wealth to the next generation.

Silver Britannia (1 oz)

We have very competitive prices – some of the most competitive in the UK and internationally.

 Call us today to order – 0203 086 9200

This update can be found on the GoldCore blog here.

Mark O'Byrne

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

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