Silver is extremely undervalued and has huge potential to regain its rightful place history when the masses finally recognize the intrinsic value it holds. Given the supply destruction that has occurred over the last 6 year bear market which reduced the number of producers in the industry, silver is poised for a strong upward move to reach a supply/demand equilibreum. The biggest recipients of a move up in the silver price will be mining companies. I am investing in the miners/producers with the lowest AISC to leverage up my capital by a factor of 5x to 10x. First Majestic Silver is a personal favorite, and run by a dynamic CEO who's backed by the best resource investors on Earth. Silver is the only asset that is currently priced 60% below its 1980 high, and that alone is a case for owning it. But there are many more reasons to own. Silver comes out of the greound at a ratio of 10-to-1 of gold, meaning that every ounce of gold mined results in 10 ounces of silver mined. Yet the price of silver to gold is 75-to-1. The natural laws of supply and demand will eventually require a rebalancing of the silver price to something closer to the 10-to-1 mining ratio, or there will be even greater supply disruption (which we're already seeing for different reasons). Silver is expensive to mine and requires vast resources and energy to get it out of the ground and proessed into bullion. Tons of rock must be dug up and finely processed, and the resulting coins/bars are a store of those expended resources and energy. If you are stuck in a 401k or IRA (like me), and can't get your hands on the cash to purchase physical metals, then consider an alternative strategy of buying the mining companies that pull the metals out of the ground. As Mike Moloney likes to say, silver (and gold too) at todays prices offers the biggest wealth opportunity in a generation.
