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main1event
29th November 2009, 21:21
I just placed this in another post, but its so important that I thought I'd create its own thread.

Silver is not lagging gold. Think about this for a moment. Silver fell 60% from its highs last year and since its bottom with gold, Silver has more than doubled in price. Silver has gone from 8.60 to $18.80. If gold were to do the same thing from its lows it would be trading above $1300.00 right now.

The real question is "Why did silver fall so much more than Gold? Well I have the answer to that one too. Because Silver did so much better than gold on the way up.

When you look at both gold and silver from the year 2001, they have performed relatively the same. Silver has actually performed a little better. Gold is up around 400% from its low of 280.00 back in 2000. Silver is up about 450% from its low of about $4.00 in the same time frame.

akak
29th November 2009, 22:10
Come on, can't you do better than this ? I fully admit that gold has done as well as silver since 2000 or so but why prefer silver since gold is much less volatile and is real money ? Isn't silver supposed to outperform gold in a PM bull market ? Of course, any thinking person can go and find out that gold has gone up 60% from mid- May 2006 ( 730 to 1176) while silver has lagged considerably at 20% ( 15.20 to 18.25).

Cherrypicking dates and data points --- the true sign of a weak and poorly-backed argument. Not to mention a weak and feeble mind.

SeekrBrnEvryMin
29th November 2009, 23:00
Come on, can't you do better than this ? I fully admit that gold has done as well as silver since 2000 or so but why prefer silver since gold is much less volatile and is real money ? Isn't silver supposed to outperform gold in a PM bull market ? Of course, any thinking person can go and find out that gold has gone up 60% from mid- May 2006 ( 730 to 1176) while silver has lagged considerably at 20% ( 15.20 to 18.25).

You might consider that we're in the middle of PM bull market that, arguably, began in 2005.

Most of us here own both gold and silver. It's precisely because of silver's volatility that it makes it profitable to trade.

Silver may not be money to you, but it is to many investors out there already, now that the dollar has been weakened. If the public becomes alarmed over the state of the dollar (again), they remember the silver that once constituted their dollars (does .7734 mean anything to you by way of the US Constitution?), their half-dollars, their quarters, their dimes...

Plus the upside of increasing industrial demand. When, not if, lithium batteries are replaced by silver-zinc, you have industrial returns to look forward to, among others.

So, keep your gold core, play silver for it's volatility. Or not.

Who are you, and what do you want?

Steadfast
30th November 2009, 09:13
Dear Aberdeen,

If silver is not money, then why is my 13 year old daughter started asking me to pay her, her allowance "in silver rounds" not in cash...?

If a 13 year old girl knows better, then why don't you? :rolleyes:

Irishfan1
30th November 2009, 09:16
IMF gold sales, and the discovery of fake gold bars has increased demand for real gold and decreased the supply of real gold. This has caused gold to do better recently. Silver is still depressed because of the big shorts. In the long run when all the kinks are worked out . The silver price will be about 1/20th the price of gold.

Steadfast
30th November 2009, 09:19
IMF gold sales, and the discovery of fake gold bars has increased demand for real gold and decreased the supply of real gold. This has caused gold to do better recently. Silver is still depressed because of the big shorts. In the long run when all the kinks are worked out . The silver price will be about 1/20th the price of gold.

Amen!
Preach it brother!

main1event
30th November 2009, 11:19
When silver busts through $21.00 and heads well above that, are we going to still be arguing which is doing better?

See you on the other side of $21.00 very soon.

Steadfast
30th November 2009, 12:11
My mind is well beyond having to deal with thirteen year old children

That's too bad, you are missing out on many wonderful insights and experiences.

Perhaps one of those insights you lack is "Childlike Humility".

Ooooh, how hard the "High and Mighty" do fall...
Your fall will be interesting to watch...

Maybe you will learn something in the process... ;)

What is Truth?
1st December 2009, 17:10
Cherrypicking dates and data points --- the true sign of a weak and poorly-backed argument. Not to mention a weak and feeble mind.

At the risk of sounding weak and feeble minded, :lol: can we better compair Gold vs. Silver by their ratio to each other? Just as an example, when silver was about $50 and gold was about $800 back in 1980 the ratio was about 16 silver ounces to 1 gold ounce. Now today I see the ratio is about 62 to 1. So if we don't use the dollar as a yardstick and stick to PMs isn't silver lagging gold? And if it is, is it a bad thing right now? It just seems to me silver may have a whole lot more steam now to bring that ratio a lot lower.