Gold Or Silver? That Is The Question
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Investors often wonder what the best precious-metal play is and which one will perform better over time. The most popular is gold for any number of reasons. The jewelry is prettier, the price is higher or simply we have been trained that gold is just better.
From a pure numbers standpoint, the case should be made for silver as the best precious metal. The gold/silver ratio was designed at 15-1 but has continued to balloon over the years, getting as high as almost 90-1. In 2011, the ratio was 40-1 and has slowly widened back to 80-1.
From a pure value play and potential mean reversion, silver is a better investment than gold and will outperform gold percentage-wise from here. Silver has a bigger upside purely based on the raw numbers; adding in the industrial value and mathematics tells you silver is the play.