Which is the better investment: gold or silver?

Q: Is gold a better investment metal or is silver?2438941120_801ea4934e_z

A: Gold is the only money that’s never failed. In the 5,000-year history of people using gold as money, gold has maintained its value and purchasing power Gold is completely private and portable. In times of economic uncertainty and crisis, it’s the safest store of wealth.

But silver is the “sleeper,” unnoticed and forgotten by most investors. In my mind, it’s the big opportunity. Silver has actually been money even longer and more often than gold. Plus, silver is used in manufacturing everything from cell phones and solar panels to medical devices (because of its antibacterial properties). It’s even used in a line of clothing at Lululemon!

The fact is we’re using, consuming, and throwing away more silver every year than we’re pulling out of the ground. We’re eating up our reserves of silver. The same is not true with gold. Because of this, silver is highly undervalued and stands ready to explode in value over the next few years. I also believe this change will create massive volatility in silver prices over the next three to seven years.

I suspect gold will rise well past $8,000 an ounce by 2020. At the same time, silver is likely to rise and exceed $200 per ounce. This isn’t some economic doomsday scenario; it’s a natural change that’s easy to see coming. Currency is being printed faster and faster – dollars, euros, yen, etc. – but the amount of gold and silver on the planet stays exactly the same. The more currency in print, the more currency it takes to exchange for gold and silver.