According to Deutsche Bank, the total return performance of Major Global Financial Assets shows that Silver had the highest percentage gain. If we look at the chart below, we can see that both gold and silver take the number 1 & 2 spot amongst these global financial assets.
Here we can see that silver has outperformed all of the financial assets as well as the major commodities such as copper, Brent Crude, corn and wheat. What is even more amazing is that silver has still taken the number one position even though its price has fallen 56% since its high in May of 2011.
Furthermore, the gains by some of the silver mining stocks have actually surpassed the price of silver by several factors since 2008. While the S & P 500 has risen 45% since the collapse of Lehman, silver is up 80%. However, we can see that Endeavour is up 120%, Fortuna 280% and First Majestic, a staggering 410%.
The reason why First Majestic’s stock price has held its own even as the price of silver has declined, is due to the fact that it is by far the cheapest and most profitable company in my top 12 primary silver mining group.
I believe the silver mining stocks will outperform the primary gold miners once the global financial system succumbs to the weight of gravity on $100’s of trillions in worthless derivatives.
Not only is silver a store of “Economic Energy” like gold, it takes a great deal less energy to mine an ounce of silver than gold which makes it a safer investment in the future peak energy environment.