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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Davy Crockett who wrote (9625)	4/24/2006 10:41:00 PM
From: Nevada9999	Read Replies (1) \| Respond to of 78412

Silver will move with and outperform gold in a currency crisis. Poor man's gold, true. However the silver price has an inverse correlation to copper and especially zinc production, because silver is a major byproduct. Present high zinc and copper prices are encouraging a lot of base metal exploration and I have seen a lot of zinc and copper projects coming to life. As copper and zinc mines come on line, they will pump out many times more silver than all silver mines can, and they won't care if the silver price is $20 or $2. Goldsheet was the master of presenting the numbers on this relationship. Thus, in a scenario characterized by stagflation and currency concerns such as the 70's, silver will outperform gold. In a global economic boom, with sustained high copper and zinc prices silver is in trouble. That is what we have now, so why is silver is outperforming? Because the base metal mining industry was crushed in the late 90's and early 00's. Running a zinc mine in that period was beyond masochistic. If present trends in metals prices continue those mines and more will come back and it will be bad for silver. On the other hand, I have a feeling the US dollar currency crisis is just barely getting started, good for silver demand. So the point is? It is a complex set of relationships, there is no simple answer, but betting on silver is not necessarily a no brainer. JMO, presented without irrelevant, prejudicial political or religious generalizations.