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Gold Or Silver? That Is The Question

Commentaries & Views

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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