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Silver and Gold will move in opposite directions in 2011
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<p>[QUOTE="Cloudsweeper99, post: 1078449, member: 3011"]A few thoughts regarding the above statements...</p><p><br /></p><p>1. I've read this too, but it happens to be untrue. There are many precious metals bloggers/authors out there will few qualifications for what they are saying. They seem to copy from each other, so the false information tends to get repeated until it becomes common knowledge. But it's still wrong.</p><p><br /></p><p>2. It is very doubtful that the big money in the gold and silver markets use this ratio. It is just entertainment for the general public.</p><p><br /></p><p>3. If you match your holdings to the ratio, you will always own more of the metal that is higher priced and less of the metal that is lower priced with no regard to the market characteristics of each. This is generally bad strategy. In my opinion it is better to analyze each metal separately and buy whatever seems to have the better investment profile regardless of the ratio. Something might be a bargain because it is cheaper, or maybe it is cheaper because it deserves to be cheaper. It is the function of analysis to determine which is the case.</p><p><br /></p><p>Good luck.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 1078449, member: 3011"]A few thoughts regarding the above statements... 1. I've read this too, but it happens to be untrue. There are many precious metals bloggers/authors out there will few qualifications for what they are saying. They seem to copy from each other, so the false information tends to get repeated until it becomes common knowledge. But it's still wrong. 2. It is very doubtful that the big money in the gold and silver markets use this ratio. It is just entertainment for the general public. 3. If you match your holdings to the ratio, you will always own more of the metal that is higher priced and less of the metal that is lower priced with no regard to the market characteristics of each. This is generally bad strategy. In my opinion it is better to analyze each metal separately and buy whatever seems to have the better investment profile regardless of the ratio. Something might be a bargain because it is cheaper, or maybe it is cheaper because it deserves to be cheaper. It is the function of analysis to determine which is the case. Good luck.[/QUOTE]
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