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<p>[QUOTE=&quot;InfleXion, post: 1094672, member: 29012&quot;]As Fishy mentioned, there has been so much printing of new money, that is to me one of the biggest drivers. Money, as a medium of exchange, is a representation of goods and services. When the amount of money increases without also increasing those goods and services, the natural adjustment is that those goods and services will go up in price because the amount of money representing them is greater. Think of it like a pie chart. Your slice of pie is always the same percentage of the whole, but the value of that slice depends on the size of the pie. The counterpoint to this is that any money already in your pocket is of less value.</p><p><br /></p><p>Since demand is down due to the job market a lot of prices have remained down to keep commerce flowing, but with metals there is another factor - the love/fear trade. People buy metals as a safe haven when things are tough, and when things are good they like a little bling. So no matter the situation there is going to be some level of support. </p><p><br /></p><p>My last driver is that, other than the anomaly in 1980, gold has fairly steadily risen ever since before the Civil War (of course there are ups and downs). The difference between then and now is that the ride upward has been more gradual as opposed to a spike out of the blue. </p><p><br /></p><p>Historically, the gold/silver ratio in the barter days was between 12/1 and 20/1. So I will always choose silver over gold until that ratio comes down, but I think both will continue working their way up until Fed policy reverses.[/QUOTE]</p><p><br /></p>

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