by Peter Cooper, Arabian Money:
Gold and silver prices have jumped since the start of 2015 as safe haven and dollar diversification plays. But this will be nothing compared to the upside gain to come as financial markets really lose it. Precious metal investors know from long experience that when gold prices go up silver does even better and vice-versa. Silver is in a tighter market than gold and with a smaller available supply then a rise in demand has a disproportionate impact on its price. It’s also an alternative to gold as prices rise because it is cheaper. The gold-to-silver price ratio is historically very high at the moment at 75, so silver prices have plenty of room to outperform and close up this gap.
Trade of the year?
Buying silver at current prices will probably be the best trade of 2015, unless precious metals get caught out by markets and manipulation like in the past three years. However, the cycle seems well set for gold this year.
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