(Kitco News) - Silver usually out-performs gold, but silver starts slower, said Jeff Clark, founder of the TheGoldAdvisor.com.
Last week Kitco Mining spoke to Clark.
Clark noted that the gold miners, represented by GDX, haven't outperformed gold. As of August 8, both gold prices and the GDX were showing similar returns. Clark expected the gold miners to start to turn around when the miners start showing higher free cash flow in Q2.
Mergers and acquisitions are expected to pick up as producers gain more cash, driven by the need for majors to acquire ounces.
Silver prices will likely start moving after gold, and silver should outperform the yellow metal, noted Clark. However, gold is seen as a better performer during negative economic events.
"Silver outperforms gold," said Clark. "It tends to start slower. Gold tends to be a little stronger, so the better value might be in silver right now."
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