Silver Trading - Is Now The Best Time To Buy Silver Online?

Silver trading prices are breaking out technically and more investors have taken notice of this poor cousin of gold and look for way to capitalize on it's upside potential. There are good fundamental reasons why more people have started to invest in silver. To people interested in precious metals investing, silver's allure as an important industrial metal for portable electronic device technology is hard to resist. This ever growing enthusiasm for silver can be observed by the increasing but quiet trading near its highest level since 1980.

Those familiar with precious metals investing are very much in tune to the gold to silver ratio. The gold to silver ratio is often analyzed by traders, investors and buyers. The lower the ratio, the more expensive silver is compared to gold. Conversely the higher the ratio, the cheaper silver is compared to gold. The gold to silver ratio commonly trends between 20:1 to as high as 70:1. This ratio can be used as a guide to buy silver online or even for your online gold trading. This is because it tell you which precious metals will rally and when.

You may be asking, is this the time for silver trading or buy silver online? To know the answer, let's travel back in time to 2003 when the gold to silver ratio was way above from where it is today. In 2003, the ratio peaked for the last time at nearly 80:1. At that time, gold has risen from $320 per ounce to $1240 per ounce. Silver, on the other hand, has risen from $4.80 to more than $20 per ounce. Those involved in silver trading at that time gained 416% gain in seven years. Although gold lagged silver, those who trade gold online still managed a respectable 387% gain, easily beating any other markets. with a 387% gain.

Here's another piece of silver history. From 1992 to 1998, when the gold to silver hovers around 60:1 to 70:1, the silver trading price soared as high as $7.80 per ounce. However, gold stayed moderately flat during this period, advancing no more than 20% and ending the year of 1998 exactly where it began six years before.

From the aforementioned historical events on silver trading, it has shown that once the gold to silver ratio tops out at 70:1, silver will go on to outperform gold in the long run. The gold to silver ratio is now about 62:1. This means that investors or traders who buy silver online or swap their gold for silver can expect plenty of appreciation ahead of them, especially gold trading prices continues it's upward move to test new highs. Even without advancement in gold price, people who invest in silver can expect for silver trading prices to reach as high as $28-34 per ounce before investors start swapping back to gold from silver.

Having said that, much depends on the industrial demand for silver and the continuous advancement of silver trading prices. A good news for those who invest in silver is that the new federal laws and regulations on proprietary trading desks require big institutions to cut back on their shorts in their gold and silver trading. Therefore, these big institutions will not have the same stranglehold on the gold and silver market that has persisted since the day where one can buy gold and silver was first legalized.

With an improving economy which will increase the demand for silver, a rise in silver trading prices is only a matter of time, coupled with the gold trading prices breaking new highs. Many savvy investors and traders are now positioning themselves for a climb in silver trading prices that can make them become filthy rich. So if you haven't already been silver trading, now it's time to buy silver online or you may want to consider swapping a portion of your american eagle gold coins for physical silver, as history is on your side.

To learn how to trade gold online successfully and more about silver trading, instantly download my FREE "The Golden Secret To Unlock Your Riches" ebook at http://www.goldsilverexpert.com/freegoldreport.htm now.

The author, Daniel Su, is a professional currency and commodity trader who provides free premium gold trading tips and resources to help traders achieve their long term financial success.