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Can anyone explain why SILVER is undervalued? And does it have a bigger upside than GOLD?

December 17, 2010 by  
Filed under Silver Investment FAQ

Right now the price of SILVER is about $10 per ounce. The price of GOLD is around $844 per ounce. The ratio is about 70 to 1, however, historically the ratio is normally 10 to 1. There is a monetary and industrial demand for SILVER yet the price is so low right now.

I’m not a conspiracy guy or anything but something just doesn’t seem right with the price of SILVER. I don’t know if there is price manipulation going on or what but SILVER should definitely be higher.

Can anyone explain why the price of SILVER has been so suppressed? Also do you think that the price of SILVER has a much bigger upside than GOLD as an investment?

Comments

4 Responses to “Can anyone explain why SILVER is undervalued? And does it have a bigger upside than GOLD?”
  1. Colin H says:

    The market will bear only what demand pushes.

    Gold is up due to availability. Not much of it right now. People are hording the Metal.

    Silver is more of a practical sale price with greater than normal supplies.

    Good luck

  2. Wilhelmina H says:

    If you operate from the assumption that the price of silver has been suppressed, then you can blame the Rothschilds or the Templar Knights or whoever you want.

    If however you consider that silver is primarily an industrial metal, then it makes sense that silver prices fall during an economic downturn.

    Gold is also used for industry, but is held in reserve by nations and hoarded by individuals during economic slowdowns. Silver is primarily an industrial commodity, like oil and coal and titanium, and should be thought of as such.

  3. Raj m says:

    speculation.. normally gold up silver up..

  4. JEFF COGA says:

    Spot price is based on future market from the Comex. No conspiracy needed… just look at the facts. Yes sliver has bigger upside but I would want to have some gold also.

    It’s not an investment… its to protect your wealth. With the historic injection of paper money into the system… as Milton Friedmen said “Inflation is strictly monterary”…

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