gold_30_day_silver.png Looking at this graph, we see a huge shift in the last 30 days. What is going on?

When we take a wider view, we see that the last 30 years of Gold-Silver price ratio data, we have just about completed a continuous loop between 1975 and 2011.


I would suggest a "normal" band between 40 to 60 (currently, we are at 42.82). We are therefore at the bottom range of normal, suggesting that gold's price could rise by ~25% (or silver sinks by 20%).

EJ suggests gold, and to stay away from silver because the Central Banks don't have any to speak of. In Jul. 2008, one commentator suggested that all gold mines could shut down for 5 years and there still would be plenty of gold available for the economy's needs and uses. (

This is based the very efficient recycling of gold (ie. old jewellery, gold fillings, gold plating, etc.). However, other precious metals are hand-to-mouth (eg. silver palladium, platinum, etc.) where small shutdowns or problems in the mining sector cause immediate rises in market prices.

If gold just keeps pace with i8nflation (ie. you don't win, but you don't lose), are the other precious metals a better investment? Retirement planning, for all the investment advisors I've ever talked to, always assume an appreciation of 8% to 10%. Pension plans usually assume 4% to 6% as they are more risk adverse. Precious metals have a significant carrying charge, and nobody pays you while you store it, they charge you. So when it comes time to sell, the capital appreciation had better pay handsomely if you are to just break even.

Comments by the experts?