Suggestions on How to Buy Silver
Forecasting prices for anything can be tricky. And a precious-metal commodity such as silver is no exception. With gold holding the leash on its "lapdog" — silver — the performance of the so-called "yellow metal" holds the key to silver prices in 2011. Here's why: For several years leading up to the 2008 stock-market panic, it typically took 55 ounces of silver to buy an ounce of gold. Today, a gold ounce will cost you just 50 ounces of silver.
The message: There's been a fundamental shift, where precious metals investors see silver as the "more-affordable" true-money option. So, I expect this newer 50:1 ratio to hold, and perhaps to even decline — which portends a relative outperformance for silver versus gold.
View full post on Gold & Precious Metals Sector and Stocks Analysis from Seeking Alpha
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