Double Down on the White Metal’s Gains
September 7, 2012 by Gold Editor
SOURCE:[Money Morning] - Gold remains the favorite of precious metals investors, but silver is now a strong number two...with a bullet.
That means you should consider investing in silver now before it goes even higher.
In case you haven't noticed, after wallowing around in the mid-20s for months, silver prices have shot back over $30 an ounce.
And thanks to wildly bullish technical and fundamental indicators, silver could soon retest its 2011 high, or even blow through it.
If that happens, silver's run-up will hand investors a fortune, so here's how you can cash in.
Historically, the price of silver per ounce has usually been equal to around 1/16th of an ounce of gold,meaning it took 16 ounces of silver to equal the value of a single ounce of gold.
But over the past decade, gold has taken off, trading as high as 60-70 times the price of silver.
That is, until last year. As silver prices rose to nearly $50 an ounce, the ratio fell to 30-1.
But as prices for the white metal settled near $27, the ratio has skyrocketed back up.
Right now, you get 55 times more silver for your money than gold.
But it would still have to triple in price to even sniff where it should be in relation to gold. And there are signs that this is just what's going to happen.