The historic price ratio of silver to gold shows that about 10 ounces of silver would buy one ounce of gold, a 10:1 ratio. Recently, the ratio is about a 50:1 ratio (with silver at $20/oz., and gold at $1000/oz.) As the silver to gold ratio returns to historic values, from 50:1 to 10:1, you may make over 5 times more money investing in silver, than gold!
More than all of the silver produced by the mines each year is consumed by industry, which leaves little to no room for substantial investment demand. A marginal increase in investment demand will drive prices sky high.
Most silver is produced as a by-product of mining gold, copper, zinc, or lead. Higher silver prices might not substantially increase the amount of silver mined each year. Consider, in 1980, when silver prices went up to $50/oz., less silver was mined than in 1979.
So watts this mean to the jewelry sector ?.Simple a huge increase in the cost of silver jewelry and with that will come a bigger demand by the general public.
Now this is were it gets tricky ,if you are a jewelry retail shop or a customer you have to be sure that the silver your selling or the silver jewelry item your buying is of the highest standard, is the best.It is quickly becoming the new fashion standard.
At present 90% of all silver is made to a standard 925%Sterling silver,which means it has a small amount of impurities added ,However for an investment this just isn't good enough .and it gets worse ,if you do buying trips for silver from lets say to Asian countries,the majority of silver in street stalls would not pass the assay test 925 that's because the manufacturer has added large amounts of copper or bronze with the silver in order to be able to sell it cheap.
There are no tricks to buying silver ,firstly you must establish a good customer relationship with a reputable or wholesaler.
Secondly he should be happy to provide documentation of were the raw silver comes from with a assay test certificate.
Thirdly try and buy silver that's Monogrammed,Customers love having designer name brands such as and you will find that if a manufacturer is name stamping his silver jewelry he has a reputation to protect.
So to sum things up ,Yes invest in silver jewelry ,but only in 98%pure silver ,wear it ,use it and wait for the price increase then you truly have a valuable asset ,you can even have it melted down and re sell the silver .Its a win win over gold .Even if gold increases in price it will not match the percentage profit that silver is now starting to return.
