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Silver and Gold will move in opposite directions in 2011
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<p>[QUOTE="medoraman, post: 1073116, member: 26302"]I would disagree a little with Cloud, (of course). The ratio USED to be extremely important, as it was a very accurate approximation of the rarity of the two metal. It was 16:1 for millenia, and all bimetallic coinage was based upon this for 2500 years.</p><p><br /></p><p>Today, however, it is exactly as Cloud describes, two commodities moving independently of each other. Silver is more industrial, and has less reserves but higher production. Gold is a mainly investment and jewelry metal with low production but high reserves. This is why they behave quite differently.</p><p><br /></p><p>As to what they will do, gold may come down and silver up like the OP said, but do not underestimate that silver is more speculative right now then ever in history, and production is ramping up. For gold, do not discount strong Asian economies and their lust for gold and only gold as a store of value. My own prediction would be softening of both, but I am just throwing out some thinking points for others here.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1073116, member: 26302"]I would disagree a little with Cloud, (of course). The ratio USED to be extremely important, as it was a very accurate approximation of the rarity of the two metal. It was 16:1 for millenia, and all bimetallic coinage was based upon this for 2500 years. Today, however, it is exactly as Cloud describes, two commodities moving independently of each other. Silver is more industrial, and has less reserves but higher production. Gold is a mainly investment and jewelry metal with low production but high reserves. This is why they behave quite differently. As to what they will do, gold may come down and silver up like the OP said, but do not underestimate that silver is more speculative right now then ever in history, and production is ramping up. For gold, do not discount strong Asian economies and their lust for gold and only gold as a store of value. My own prediction would be softening of both, but I am just throwing out some thinking points for others here.[/QUOTE]
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