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Slver For Gold

December 10, 2009 – The recent precious metal rally has sparked interest among investors in silver and gold, because the two metals have, for the most part, moved in unison since our recession began almost four years ago. The current silver for gold ratio is about 65:1, which means that it requires 65 ounces of silver to purchase one ounce of gold. The current ratio is far out of line with the historical separation between the two metals, but gold’s inverse relationship with the dollar has allowed it to outperform silver in recent years.

Silver gained 70% in the last 365 days, but the white metal is more speculative than gold because of its key utilization in some of our nation’s failing industries. Gold has been an especially valued commodity for the last 5000 years, and gold prices have historically thriven during high inflationary cycles. Although inflation is not an immediate threat, the Federal Reserve is expected to raise interest rates within the next 14 months and this could devalue our dollar significantly.

Some investors have decided to trade silver for gold, since the yellow metal has a historical tendency to outperform the majority of other markets during troubling economic times. Economists believe that the gold spot price could reach $1400-$1500 in 2010, unless our government finds a way to stave off inflation of the dollar.

If you believe that inflation is imminent and you want to protect your buying power until our nation regains its financial footing, you are not alone. Register below for your copy of the 2010 Insider’s Guide to Gold and Silver Investing, or contact GoldSilver.org for more information on the precious metal market. 

Shannon King

Senior Staff Writer – GoldSilver.org

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