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All Eyes On Gold And Silver

April 5, 2010 – Investors are keenly watching the Dynamic Duo of gold and silver following parallel impressive gains they posted Friday, April 2 to cap the first quarter of the new decade.

Gold’s end-March number of $1126.10 was not unusually big, but significant on two counts: It demonstrated that gold could sustain a run (which started two weeks ago) and could keep distance from the psychological level of $1100.

Silver’s performance of $17.89 was a breakthrough price that crossed the psychological barrier of $17.50 identified earlier of David Morgan, founder of www.silver-investor.com. Morgan foresees a run by silver up to $19 now that the barrier has been broken.

Some investors did not fail to notice the occurrence of parallel runs by gold and silver every so often in the market. In the decade just past, gold made off with a 400% take. Gold prices teed off at about $270 in 2000 and holed in at over $1100 in 2009. On the other hand, silver made over 300% during the same decade. Price of silver was barely $5.00 an ounce in the year 2000 and ballooned to almost $17.00 in 2009.

Gold and silver showed the same parallel behavior during the price run in the seventies. Gold price in 1970 was $37 an ounce, by 1979 gold price was almost $600. Silver in 1970 was priced at $1.635 an ounce, rose to $5.930 in 1978 and suddenly skyrocketed to $21.793 the following year. Gold ended the decade with an increase of over 15 times its starting price while silver increased by 13 times over its starting price in 1970.

Do we see a similar parallel performance by the Dynamic Duo in this decade? The possibility is great. 

Shannon King

Senior Staff Writer – GoldSilver.org

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