To understand which precious metal is currently a better buy, it helps to look back at the past.
Over the years, there has been a 16 to 1 ratio for silver versus gold.
In other words, it has generally taken 16 ounces of silver to equal the value of one ounce of gold.
However, recently that ratio has become disproportionate in that it now takes 55 ounces of silver to equal one ounce of gold.
For this reason, experts believe that silver will quadruple in value from approximately $25 to $100 in value before gold doubles in value from $1300 to $2600 to get to that tried and true ratio that has shown up again and again over the years.
That’s why most experts are advising clients who are making a long-term purchase of at least 3 to 5 years to buy silver or if the client is looking for a more diversified portfolio to invest 40% in gold and 60% in silver.
Silver has long been a hedge against inflation – that is to say that as the dollar loses value, the price of silver naturally rises.
This is why each time the Federal Reserve decides to do another round of “Quantitative Easing,” which is printing more money, the price of silver goes up.
But there are additional reasons why buying silver with your IRA could help secure your retirement.
1. Following a recent consolidation period, experts are now saying that silver is poised to rise quickly in price. Many are predicting its price could reach as much as $50 an ounce.
2. Unlike gold, silver that is used in industrial applications cannot be recovered.
3. Silver supplies are dwindling. In fact, Scientific American has predicted that should production levels remain the same, all the silver in the world will be used up by 2029.
The US dollar is in rapid decline and seems to lose more purchasing power with each passing day.
In fact, the U.S. dollar has lost value for 40 years and now has just 20% of the purchasing power it had in the 1970s.
The sad truth is, as a currency, the dollar can no longer be considered the storage of wealth it once was – and that’s because we are living in an age of runaway and unlimited printing of money.
The Federal Reserve’s decision to engage in this open ended round of money printing is very alarming and is increasing the speed of the dollar’s decline.
So what does all of this mean for you and your IRA account?
It means that America is facing the very real possibility of growing inflation, which could sap your IRA profits and dramatically reduce the money you have for retirement.
In addition, while the dollar continues to lose value the real estate market is also down and stock and currency investing is turbulent.
