Why do you suppose that out of so many years, right now is a good time to invest in silver? One of many reasons is actually there seems to be a historical breakout for silver in India. Put simply, silver prices is beginning to make a rise in terms of the Indian rupee although not in U.S dollars. Silver is the last major precious metal to break away, and the fact that it's doing this in a foreign currency is suggesting to an early warning signal that U.S. traders should place their silver bets within U.S dollar terms.
The move in prices within India is exactly what I call a "stealth in price movement". The grow within prices in rupee money will provide U.S. investors with a view of what investors in other finance industry is thinking by a look at the movement they know that they can invest in silver.
In this instance, I ndian investors observe inflation as a reason to be concerned. Plus they see the silver metal as the answer.
Over the years, silver has shown that it is to be a hedge against inflation in other asset prices. It can serve as a holding of value. Certainly, in today's world that have debt backed currencies with sovereign bond risk, silver is ready to return to its precious metal with value, joining gold like a currency with no debt default risk.
While worries of inflation sweep across India's economic climate, that country's silver industry keeps creating new record highs. At the same time, the silver price in the U.S. market also has shown early indicators of waking up. This can make investors want to take a look at the industry and silver trading.
Silver is at the mo ment cheap, when listed in gold. This has occurred because the yellow metal has recently been setting new minimal high prices this year though silver was unsuccessful to follow suit. This particular price divergence between silver and gold has attracted some investors, who might try to place a trade that is based on the ratio between gold and silver as quoted in silver oz.
In this type of trade, the potential exists to earn money as silver goes up or as gold moves down in price. Silver has been trading at an average ratio at around 61 oz of silver to one oz of gold. Currently, the actual trading ratio is roughly 65. This allows us to realize that silver is cheap compared to gold at current prices.
During the Hunt Brothers pricing bubble, silver arrived at a record low ratio of 17 ounces to one oz of gold.< br />
The extreme characteristics of the 1980 price move caused by the Hunt Brothers is most likely why silver has yet to have a price breakout, at least not in U.S dollar currency calculated in rupees. Silver is currently trading at a record high and it is certainly looking good for traders who want to invest in silver.
Additional Resources:
How To Trade Gold With 2 Types Of Gold Accounts
Invest In Silver - Make Money In India
