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How should silver appreciate as gold advances?

*Financial Times, by Monica Porter, September 9, 2006


“During precious metal bull markets, silver tends to appreciate faster than gold. For example, both gold and silver values have risen every year since 2001, when this current bull market began. But while gold rose 2.2 times, silver has risen 2.4 times. Therefore, the gold/silver ratio has fallen from 72.4 to 56.6 – which means it now takes only 56.6 ounces of silver to purchase one ounce of gold – and I expect the ratio to continue moving lower and approach the historical relationship, over hundreds of years, of 16 ounces of silver to one ounce of gold, last seen at the end of the last bull market in January 1980.

So while both gold and silver will rise, I expect silver to rise at a more rapid rate. However, while silver has greater potential, it is more volatile than gold, so it is not for everyone.”

*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.