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<p>[QUOTE=&quot;Rono, post: 194921, member: 6492&quot;]Howdy folks,</p><p>&nbsp;</p><p>Great discussion, and I&#039;d like to add a few comments and hopefully, they won&#039;t get labeled as off topic.</p><p>&nbsp;</p><p>I like silver, marginally better than gold as a bullion investment.&nbsp; In the past, I liked it MUCH better, but today the demand for gold is up for various reasons and that means you can&#039;t simply ignore gold.&nbsp; I also think that platinum and palladium (the P&amp;P sisters) have room to grown.&nbsp; </p><p>&nbsp;</p><p>The historical ratio has been mentioned, and I recall it being more in the 1 to 15-20 range.&nbsp; Right now it&#039;s 1 to 47-48 and early last year was 1 to 65-70.</p><p>&nbsp;</p><p>During the Hunt Bros bull market in the late 70&#039;s, gold peaked at ~850 while silver peaked at ~50.&nbsp; [read:&nbsp; 1 to 17].&nbsp; If you had played gold, you would have doubled your money.&nbsp; If you had played silver it would have grown tenfold.&nbsp; Granted, the Bros were attempting to corner silver, but the numbers are still impressive.</p><p>&nbsp;</p><p>Silver is used industrially still and while gold is to an extent, the only substitutes in many applications are platinum (or palladium) or silver.&nbsp; Industry accordingly, defaults to silver.&nbsp; Note that the primary substitute for platinum is palladium so they have a tendency to run in tandem when in equilibrium.</p><p>&nbsp;</p><p>Right now the demand for gold is enormous and growing.&nbsp;&nbsp; A couple of years ago, they finally made it legal for chinese citizens to own gold.&nbsp; With their growing economic middle class, some are buying &#039;bling&#039; while their the gov&#039;t in increasing their gold reserve.&nbsp; In India, it&#039;s a cultural thing as gold jewelry (bling) is the female version of social security.&nbsp; Indeed, it&#039;s also requisite as dowry for young ladies.&nbsp; With their economic expansion, folks are buying.&nbsp; Add on to this demand the fact that some of our trading partners are starting to increase their gold reserves in the central banks --- and you end up with greater and growing demand for gold.</p><p>&nbsp;</p><p>Right now I&#039;m riding the precious metals with either bullion or mutual funds or stocks about 80/10/5/5 in silver/gold/platinum/palladium.&nbsp; I&#039;m also playing the base metals like copper, nickel and iron to a much lesser extent with stocks. </p><p>&nbsp;</p><p>gold-eagle and kitco are two KEY websites if you&#039;re going to follow this stuff,</p><p>&nbsp;</p><p>peace,</p><p>&nbsp;</p><p>rono[/QUOTE]</p><p><br /></p>

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