Why you should stock up on silver

Silver looks like a serious investment proposition, says Jack Dyson. It has multiple applications, is highly versatile, yet looks distinctly undervalued.

What's so special about silver? The most plentiful and least expensive of the precious metals, silver has been used in jewellery and as hard currency for centuries. From ancient Greece and Rome to the old silver dime in the US, a silver coin has historically been the equivalent of a day's wages. For five hundred years until the mid-19th century, it took between 15 and 20 ounces of silver to buy one ounce of gold. Now that ratio is 58:1. With that sort of benchmark in mind, some analysts argue that silver is distinctly undervalued. Silver has some heavyweight fans too. Warren Buffet bought 130 million ounces of real silver in 1997 - as much as he was legally allowed to buy - and has since been joined in the market by George Soros (who owns a large percentage of Apex Silver) and Bill Gates (who is said to own more than 10% of Pan American Silver).

Why invest in silver?

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