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<p>[QUOTE=&quot;fatima, post: 1247705, member: 22143&quot;]I&#039;ve been saying consistently on this forum not to expect silver to follow gold.&nbsp;&nbsp; There are two basic arguments being made here for silver&#039;s rise.</p><ol> <li>Silver will rise because it is a hedge against bad economic policy of government, especially the US government.</li> <li>Silver has many industrial uses and supplies are short. </li> <li></li> </ol><p>On item #1, I disagree.&nbsp; Silver is not a hedge against the economic policy of the government because silver is not used as a world currency or sovereign financial asset. (world currency = it&#039;s accepted everywhere without question, central banks use between themselves)&nbsp; The only metal that holds this distinction, currently, is gold.&nbsp;&nbsp; People often mistake silver to have this same role, but it has not held this position since the late 1960s, and then only marginally.&nbsp;&nbsp; If you are buying silver to preserve wealth because the currency is being debased, this would be a mistake.&nbsp;&nbsp; Silver may or may not rise due to this.&nbsp; You need to move to gold if this is your reason for holding PMs.&nbsp; There is also no longer any such thing as a gold/silver ratio.&nbsp; </p><p><br /></p><p>On item #2, I agree.&nbsp; However you are now only looking at Silver as a commodity and there are two aspects to this.&nbsp;&nbsp; First commodities are subject to speculation on the futures markets.&nbsp; Silver is a favorite for this as recently demonstrated.&nbsp; Second, industrial commodities usually do poorly during times of recession because industry slows down or stops.&nbsp; &nbsp; In this case, Silver, is a fairly risky investment.&nbsp;&nbsp; Unless you understand fully what drives it as a commodity, you stand to get burnt badly.[/QUOTE]</p><p><br /></p>

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