Gold-Silver price ratio

Silver has undoubtedly outperformed Gold in terms of pricing and is now breaking away from the 15$ per ounce price. When I started this blog and was also beginning my precious metals savings, silver was at 10$ per ounce. If you are a trader then this would mean a 50% gain in what you have invested in, in just a matter of 8 months, not bad for someone wanting to do an honest living.

For those wanting to be long-term investors in this metals bull market which is just beginning, it is imperative to understand that there is what we call a Gold Silver price ratio. This just means that at the present price, it would take silver multiplied approximately 61 times to get to the price of gold. Based on economic history fundamentals, this is too high and some experts say that a ratio of less than 50 has been more parallel with history. This just means that for silver to get to the price of Gold, it needs to be at the 20$ per ounce level.

I am not investing in metals for the short term and I am looking to increasing my portfolio. I would rather buy metals than hold on to pre-need insurance to fund my child's education someday which is full of deception and greed. Increasing one's financial literacy as to investing in precious metals may help hedge income from unfavorable economic times ahead.