My father is my hero. His mother died when he was 3 years old … his father when he was 20. He was born in 1933 in a small village in India. At that time India was incredibly poor, people were dying of hunger every day. Somehow, he was trained in college. And then Dad got a job in Bombay, India’s largest city. However, he was broken up with his family to contain.
In 1974, he applied for a job in Dubai. Nobody has heard of Dubai.
“Don’t go!” his siblings told him when he got the job.
India’s prospects were dire. Dubai has just found oil. He knew that taking a risk in Dubai was the best bet. It was a calculated risk.
“I have nothing to lose,” he told his family when he started work.
When he arrived, Dubai was predominantly desert. He went to the sheikh’s palace to drink coffee and discuss matters.
Looking back, it was easy to go to Dubai. Dubai has grown spectacularly. Dad earned 100,000 times more money than if he had stayed in India. By the time he died in 2000, he had given me and my sister tuition in college. And he saved enough, so my mom never had to work or worry about money.
The result: my dad took a calculated risk when he took a risk in Dubai, and it paid off quickly.
I am my father’s son. Calculated risk is my philosophy of investing and trading. This is how I made money for clients while on Wall Street. And now I’m investing my own money like that.
Calculated risk in financial markets means you take advantage of opportunities when the odds are in your favor. So if you invest, you have a good chance of making money. You certainly never get a guarantee, but if I get a good chance, I bet.
Today I will show you an incredible opportunity in the precious metals market. This is a trade where the odds are in your favor as I will show you. And this is a trade in which I have invested my own money.
If you buy 1 ounce of gold today, it will cost you 80 ounces of silver. In other words, gold is 80 times more expensive than silver. This has happened only three times in the last 15 years. This is extreme. And usually when the ratio of gold to silver reaches extreme levels, two things happen.
First, you see, prices are rising. Period. In 2008, when the ratio reached 80, silver rose. In 2002, silver grew by almost 100%. In 1991, the metal received more than 40%.
Second, the price of silver is rising faster than the price of gold.
Silver is too little
What’s going on? Why is this going on?
Gold is a precious metal that is mostly in demand. Investment demand means that people own it because they believe the value of gold will rise.
Silver has two sources of demand: investment demand because it is a precious metal, and industrial demand. For example, it is used in solar energy, to create electronic circuits and as a catalyst in chemical reactions.
About 56% of silver use goes to industrial demand. As a result, prices are sensitive to industrial demand. Therefore, gold and silver do not trade with each other.
Another reason is that silver is rarely found on its own. As much as 66% of silver comes as a by-product of copper, lead and zinc. Silver supplies increase as companies increase production of these metals. So you have a situation where the supply of silver is too great compared to the demand. Because of this, silver prices are falling, even as gold prices are rising.
Delivery does not have time
So what’s happening now? Copper is at about a six-year low. Zinc at a nine-year low. Leads to a minimum of five years. Due to such a collapse in prices, mining companies have reduced production of these metals. Not surprisingly, silver production will also decline sharply. Capital Economics, a respected research company, expects production to decline by 9.2% in 2016 and 13% in 2017.
However, the demand for silver is great. Investment demand grew by 400% from less than 50 million ounces in 2006 to 200 million ounces in 2015. Investment demand will continue to grow due to negative interest rates and financial instability, which causes distrust of paper currencies.
Moreover, industrial demand for silver is expected to grow by 3% in 2016.
The sentence is reduced. Growing demand. The ratio of gold to silver above 80 is the level at which silver soars from the past. Once two three. The stars are aligned so that the metal takes off. How high? The price of silver can reach at least $ 30 an ounce, which is about 100% of its current price.
Good odds for big profits
This is the trade you should love. Chances are in your favor. Of course, there are no sure things to invest in, but I believe that silver is a reliable rate for growth from its current price.
You can play silver by buying physical ingots or coins.
Finally, you can buy silver mining companies that trade in the stock market, which I bet on. Unfortunately, there are no ETFs that focus on silver mining companies to recommend you. And it would be reckless to tell you to buy stocks without giving you all the facts and proper analysis.