Sunday, February 25, 2007

Gold vs. Silver

A recent email asked me about gold vs silver.
Q: what do you like silver better than gold?
A: There are three factors to consider which one is better.
  1. We're in a gold bull market, which started in 2002. The bull and bear cycles are usually lasting 20 years.
  2. Study shows silver has almost 100% correlation with gold, and silver outperforms gold in the gold bull market.
  3. The time gold outperforms silver usually happens when there is a great turmoil in the world and financial markets. Gold is the only haven buy.

I think silver will outperform gold in the near future.

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