The 600 point drop in the Dow today was one of the largest on record. It reflects a loss in confidence of our government more than anything - both parties are equally guilty. Gold out performed silver today reflecting it's value as a bad weather friend. Ultimately silver will be stronger than gold but it is more of an industrial metal than a store of value. The fundamentals of silver are much better than gold - everybody has some gold and silver even if only in the form of jewelry. Ask yourself a simple question... do you have 43 TIMES the amount of silver than gold - that is the current ratio - probably not !. Over history this ratio has been nearer to 16:1. So... it is a good bet that silver will out perform gold over the long run as there is less of it around and every year more is used in industrial applications than is mined or recovered BUT in times like these gold is the better safe haven as it is owned by governments across the world. You can trade in ten 100 ounce silver bars that weigh around 75 pounds for a few gold eagles that fit into your pocket.
In the short term gold should continue to go higher but it is beginning to become a "crowded trade" as many of the hedge funds have gone long and they face redemptions from their losses in other investments. I have taken a few profits here but gold will be king until we can clean up our corrupt banking - more on that another time.
In the short term gold should continue to go higher but it is beginning to become a "crowded trade" as many of the hedge funds have gone long and they face redemptions from their losses in other investments. I have taken a few profits here but gold will be king until we can clean up our corrupt banking - more on that another time.
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