Silver will outperform gold and the price of silver will go much higher. The average gold/silver ratio during the 20th century was 1:60. Silver price is driven by speculation and supply and demand. Compared to gold, silver prices will go up more so than gold because there is less silver being produced than gold since silver we demonitized a while ago. There's hardly any gold to go around as it is and there's even less silver. The price of silver is surging. The increase in silver prices has been partly a result of a rise in industrial demand. Also for a lot of investors, silver is a more affordable alternative to gold. You can buy 16 ounces of silver for the price of 1 ounce of gold. Silver should be at around $80 an ounce yet it's been around $21 recently.

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Comments

Lee   Monday, May 07, 2012 1:12 PM

Currently (May 7, 2012) you can buy approximately 54 ounces of silver for the same price as 1 troy ounce of gold. When the first US mint was established in 1792 a 15:1 silver/gold ratio was mandated. If a return to the gold standard - fixing silver’s price at the 15:1 ration – ever happens the price of silver would obviously increase dramatically. Silver’s use as a backing of a major currency at any ratio to gold would likely result in silver price appreciation … at least until the supply created by mining companies catches up with demand.

Lee
www.GoldBullion-SilverBullion.com

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