This Could Send Silver Prices Soaring This Year

New York (Mar 6)  Silver prices haven’t performed as great as gold bullion in 2016 so far. This shouldn’t be a reason to get discouraged, though. In fact, it should be looked at as an opportunity.

If you think silver isn’t even worth a look, consider the following three reasons that suggest the gray precious metal is undervalued, has long-term potential, and could act as insurance for your portfolio, just like gold bullion does. I call these reasons “X factors” and most investors aren’t even looking at them.

X-Factor #1

Since the beginning of 2016, it’s been interesting to say the very least; investors are ignoring silver and buying gold bullion. If you look at these metals from a historical perspective, they tend to move in line with each other. Silver prices usually perform better on a percentage basis.

With this said, silver prices in terms of gold bullion, look severely undervalued. Please look at the chart below of the gold-to-silver ratio. At the very core, this ratio tells us how many ounces of silver it takes to buy one ounce of gold. Whenever this ratio is trending higher, silver prices are considered undervalued.

Source: ProfitConfidential