*Dow Theory Letters, by Richard Russell, September 4, 2009
“Speaking of buying, silver looks like a buy to me. Silver is too cheap compared with gold. Study the chart below. This is the ratio of silver to gold. When the ratio rises, it means that gold is outperforming silver. At the end of 2008, an ounce of gold would buy 85 ounces of silver. Since then the ratio has come down in favor of silver. Now an ounce of gold will buy only 63 ounces of silver. Silver is still too cheap compared with gold. At the end of 2007 an ounce of gold would buy only 45 ounces of silver. I think silver is a buy.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. 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.
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