Spot Gold, Silver & Inflation
silver nugget
Once the indications of inflation become obvious to the public, gold is sure to rise dramatically. But silver will be pulled along for the climb more slowly until gold becomes scarce to purchase as bullion or those with fewer available funds seek safety in a less expensive PM. Then silver will rise at a faster rate than gold and possibly all the way back to the historically traditional 16:1 ratio. Gold always gets all the attention but its little brother has always, and will again, retained a valuable legacy position.
silver nuggets
Why Buy Gold or Silver?
Morgan silver dollar
The dollar and other currencies are not necessarily doomed if they print 3X or 4X the amount of fiat money because they are only covering the electronic money that was created and lost through gambling in derivatives by financial institutions.
To give you some background information, at the end of the Cold War in 1990 it was recognized by some policy advisers that there was not enough money in circulation to support the recovery of Russia and Eastern Europe to avert a major crisis. At that time, the central bankers refused to print money to avert the impending crisis. Consequently, it was decided to price and allow derivatives to create electronic money. This resulted in the creation of trillions of dollars of new electronic money that was used to help the world avert a crisis and to grow the world’s economy. Read more 
Silver – A Better Bet Than Gold?
Silver coin
If you had to pick a precious metal to buy on decline it would be this one, since it is already 34% off its year ago high, compared to only 9% for gold.
The physical/electronic trade has been off and the simple pricing of Gold/Silver is, in my opinion, way under any fundamental value. It doesn’t appear to be getting back anytime soon.
The value of Gold and Silver has been down lately, especially if you relate this to the current dollar strength.
Yesterday, gold dropped into $930/oz territory. It has pushed up since, but may be in a tight range between $920/oz and $940/oz over the next few sessions.
Although a further drop to $905/oz may be possible, if strong support is found at $920/oz this would be a strong signal that gold is about to push back up to $1000/oz with the possibility of record levels thereafter. Gold is currently trading at $938/oz.
Silver briefly dropped below $14/oz in early trading before regaining some ground and is currently trading at $14.13/oz.
