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 Gold prices are on the rise again. But it’s sister white metal prices can sky rocket six times more than the gold. This is the precise reason that Warren Buffet, Bill Gates and George Soros have always invested heavily in this less glamorous sister of gold. Yes, I am talking about silver. Now, let’s talk about some historical ratios. Historically gold and silver prices have had a ratio of 16 to 1. Now, right now the price ratio between gold and silver prices is around 66 to 1.

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Right now, silver prices are around $18 per ounce. If we keep the above ratios in mind, this means silver price should be around $100-$125 per ounce. This means a gain of 500%. Silver is not only used as a store of wealth, unlike gold, it has many important industrial applications.

This might be the best time to invest in gold and silver mining stocks. When gold prices increase, silver prices invariably follow suit. Couple this with the demand for silver in different important consumer industries. This means a skyrocketing of silver prices in the next few years.

Start digging junior mining companies that are engaged in exploring new gold and silver mines. Do your research and find those promising junior mining companies that have the potential to unearth a major find. When this happens, the stocks of these mining companies can give you gains as high as 500%-1000%. Just by investing a few thousand dollars in these mining stocks, you can become rich.

Gold has started to make it’s big move. Now this is your turn to make your move. Gold prices have reached the record level of $1,240 per troy ounce. Many analyst are predicting gold prices to double in the next six months. The world is experiencing an unprecedented financial crisis. The fears of recession are again raising their ugly heads.

Previously, the system was pegged to dollar and the dollar was pegged to the yellow metal. In 1973, President Nixon decided not to defend the Bretton Wood System and this started the rise of gold prices. Those who were savvy enough and invested in gold coins, bullions and stocks made a fortune.

In 1975, shares of Lion Mines were selling for $0.07 per share. By 1980, the shares of the same Lion Mines were selling for $380. If you do the calculations, this share price increase from $0.07 to $380 approximately equals to an astounding return of 500,000%. Can you think of making this much return in a matter of five years? Impossible.

Gold prices are again on the rise. It is being predicted that gold prices can reach as high as $8,000 per ounce. Gold mining stocks of many junior companies are still selling for pennies a pop. Don’t wait for everyone to start talking about these gold mining stocks. By then it will be too late.

This entry was posted on Friday, July 16th, 2010 at 2:08 am and is filed under watercolour art. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.