Gold's 'Ugly Sister' Gets a Second Look

MarketWatch ^ | May 15, 2010 | Myra Saefong

[Diana in Wisconsin]

TOKYO - Investors are finally giving gold's "ugly sister" a second look.

Silver's gains in recent months have significantly outpaced gold's, with silver climbing around 30% since early February, compared with gold's nearly 17% price gain.

And some analysts say silver hasn't yet caught the attention it deserves.

Investors "are not taking notice yet it looks like the world is far more focusing on gold," said Gijsbert Groenewegen, a managing partner at Silver Arrow Capital Management.

That's fair to say given that silver's more than two-year high above $19 pales in comparison to gold's highest-ever settlement price of more than $1,243 an ounce in New York for its most-active futures contract.

*SNIP*

"While silver has outperformed gold in recent months, it has massively underperformed gold over the long term," said Mark O'Byrne, a director at GoldCore, an international bullion dealer.

Gold's nearly 50% above its nominal high in 1980 of $850, while silver remains at less than 60% of its 1980 high of around $50, he said.

"Investors continue to view silver as gold's ugly sister," he said.

There has been no talk of pension funds, high net worth individuals, or large hedge funds investing in silver as of yet, O'Byrne said. "This will change in the coming months, and this is when silver is likely to really move up in price."

*SNIP*

"Silver is 'poor man's gold' and will ride on the coattails of gold, but gold is the true hedge against the demise of fiat currency," said Mark Leibovit, chief market strategist for VRTrader.com.

Even so, it's silver that's poised to garner the attention in the months and years to come.

[Diana in Wisconsin]

"Silver will continue to follow gold moves in the short term and medium term but in the long term, silver will move on its own," said Chintan Karnani, chief analyst at Insignia Consultants in New Delhi.

[exile]

Silver is 'poor man's gold'

Thanks to Adolf Judas Obama's second great depression, we're all poor now. I'm a huge fan of silver, it's practical and affordable enough for everyone to invest in.

[Diana in Wisconsin]

Agreed.

[C19fan]

I thought the silver high in 1980 was caused by an attempt to corner the market. Curious to see the relationship between silver and gold prices since 1970.

[albie]

In dollar terms, gold benefits as well as other metals from the rise in the euro, and will perform better. Gold has much more worldwide allure as an investment compared to other metals. Silver is a bit of a hybrid. It has industrial demand. There is going be a big decrease in industrial demand. Long term, silver will likely do fine, but the safe bet and likely the highest long term return is gold.

[Revelation 911]

IMO - silver is easier to transact with if the economy ever goes completely dark

[1COUNTER-MORTER-68]

What’s her phone number,,,No Wait!!!...;0)...

[jiggyboy]

Goldbug ping

Mail me to get on or off the Free Republic Goldbug Ping List.

[WackySam]

I thought the silver high in 1980 was caused by an attempt to corner the market. Curious to see the relationship between silver and gold prices since 1970.

The same thing is happening now, only in reverse. The larger financial institutions hold massive short positions in silver. Eventually they will have to cover.

[Big Horn]

Silver will be used for small purchases like fuel and food where gold will be used for land and armies.

[Big Horn]

Silver will be best for smaller weekly purchases. If you want a house or some land a little gold will be nice.

[dennisw]

Silver will be best for smaller weekly purchases. If you want a house or some land a little gold will be nice.>>>>>>>>>

One ounce silver coins
5 and 10 ounce bars
“Junk silver” dimes and quarters

[redhead]

I have a lot more silver than gold, but in terms of their relative value, both are in similar range. It’s kind of interesting to see how close the daily totals are. I didn’t plan it like that, but that’s how it has been ever since I bought in 1999, when silver was down around $6.

[Silver Sabre]

There was an attempt to corner the market in 1980. Silver is such a tiny market that individual billionaires could single handedly do it.

[Silver Sabre]

Reasons to invest in silver. (Physical silver)

http://www.silverbearcafe.com/private/04.09/roota.html

[Christian_Capitalist]

"Investors continue to view silver as gold's ugly sister," he said.

Not ugly:

TEOTWAWKI Money: Each pre-1964 10c silver dime is worth $1.39 today.

There's only maybe 6 times as much silver above ground as there is gold (if that much), but you can buy silver for 1/60th as much as gold costs. If these two metals were priced on scarcity alone, that's like getting a 90% discount on silver. I know what I'm stocking up on for my family.

...(and yes, we do already keep a firearm in the house. Only one at present, but that's one more than most of our neighbors).

[Rodamala]

Currency equivalants -- My predictions for October, 2012:

1 Gold Maple Leaf = 60 Silver Eagles
1 Silver Eagle = 2 cases of (good) beer
1 case of (good) beer = 20 rounds .45 ACP
1 round .45 ACP = 20 rounds .22 LR
1 round .22 LR = 5 ObamaBucks
1 ObamaBuck = 20 Chinese yuan

[Diana in Wisconsin]

You bought in back when we did. It’s been a wild ride. :)

[meyer]

Eventually they will have to cover.

Well, they ain't going to cover with my stash. Not much coverage there anyway.

[OneLoyalAmerican]

Greetings exile:

Adolf Judas Obama

Some say "Nero" is somewhere on the birth certificate too. BTW, do you hear the sounds of a fiddle?

Cheers,
OLA