Silver May Be The Best Investment Value Today

The gold:silver ratio is a good barometer of gold and silver prices. The extremely simple ratio indicates how much silver it takes to purchase one ounce of gold. The ratio currently sits at around 69.5, which is well above the five-year average level of 50-60. This is still much higher than the 100-year average of around 40. To me this indicates that silver is undervalued and that any further gains for precious metals will see silver continue to outperform gold. The industrial uses of silver should also help the gold:silver ratio narrow back to normal levels and in the future possibly go much lower.

How To Gain Silver Exposure

Gaining exposure to silver is slightly harder than gold as there are many more gold mining companies, funds and ETFs to choose from. However, listed in London there are a few fantastic silver mining companies that deserve a look. The first is Fresnillo (LSE: FRES), which is the biggest silver producer in the world and based in Mexico City. Fresnillo’s Mexican assets are of very good quality and produce about 900,000 ounces of gold a year too. The company has seen its share price rise over 137% this year and it should continue to rise if the silver price rises too.

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