Hello Phil,
I would strongly suggest otherwise, to your point about silver varying inversely with the price of gold. If you look at a thirty-year chart
you will see that the two metals (gold&silver) have almost mirrored each other. For example in 1980 when gold was around $650/oz., silver was up around $35/oz., then when gold hit $500/oz. in 1983, silver was right up there too at around $14/oz. These are just a few examples as the two charts really go hand in hand.
One point you made could however be a reasonable scenerio, as gold mines shut down, and the silver is left in the ground, due to the sagging gold price, this could in someway help to create even more demand for silver. Keeping in mind that silver supplies are already getting depleated as industry demand for silver continues to rise.
Maybe this will be the rare time that silver moves gold on some upward momentum. One thing is for sure, the chart on silver sure looks alot more stable than gold at this point. Those 120,000,000 oz/ag. at Diablillos will be looking mighty fine in the upcoming months ahead!
Cheers
Ric Staya |
