Wednesday, October 28, 2009

Silver : Gold Ratio Updated

 Once again, Silver:Gold has been unable to punch through the strong resistance level of .017 Ounces of Silver for One Ounce of Gold. Looking at the daily and weekly silver/gold ratio charts above shows a clear picture of where we are right now.

It would seem silver is being kicked to the curb once again. But is it really? Is gold destined to continue to outperform silver forever? Some highly intelligent investors like Gary at Biiwii believe so.

I always read Gary's blog as it is both entertaining and useful information. He has a very unique slant on things.

On the other hand, I always read Jim Sinclair's Blog as well. His slant is very unique as well.

Both of these gentlemen interestingly enough are pro gold. While Mr. Sinclair is less bearish on silver than Gary is, he has at times taken to badmouthing silver as well as badmouthing Sinclair. I believe that Mr. Sinclair has forgotten more about gold, silver, currencies, derivatives and trading than most humans could ever hope to learn in a lifetime. He is the real deal.

I am one of those "Silver Bugz" that Gary speaks of. I do believe that silver is extremely undervalued and that one day it will return to what I consider a more realistic relationship with the price of gold.

But for now, Gold looks set to outperform silver once again.