Is Silver the New Gold?
These have been somewhat quiet days for gold related news. I’ve taken to waiting until noon to send this daily commentary in hopes of catching some late breaking late morning developments.
Yesterday I talked about the coming next phase of the gold bull market due to a move by the banking regulators to bless gold as a Tier One Asset, or a cash equivalent. I offered a bit of solace for long suffering silver holders who may very well be holding silver at its present level in the low 30’s but who bought at closer to 50. Naturally if gold rallies 20 to 30 percent once it attains a cash equivalent status, silver will rise, though silver will be the riskier investment vs gold since it will not be in cash equivalent club. TO be objective, here is a nice infographic extolling the virtue of gold. This comes courtesy of http://www.mining.com/infographic-is-silver-the-new-gold-44174/ Let me clear about my position. I do not think Silver is the NEW GOLD. I feel that silver will always take a back seat to gold unless silver, too, becomes a tier one asset. But having said, it is possible that silver could outperform gold a knee jerk percentage basis once the crowd comes to the realization that GOLD will be a TIER One asset and that silver will bounce higher in a sort of a lockstep with gold…
Yes, this is one long infographic. Excellent work. Though, imho, it will take another big move up for gold to above the $2000 level to get silver closer to $50. Certain larger players in silver may dump silver in favor of the tier one asset, Gold. You can bet there will be a ton of put and call speculation in silver that will cause plenty of volatility and should dreaded margin calls show up? Silver will get hammered back into place although I feel the time of silver in the $30 range may soon come to an end and that a higher floor for silver may be in store for longer term holders.
Share this post
Author Jim Kingsland
Market commentator with focus on Gold and Silver after long broadcast career at FNN, Bloomberg, and Fox. #RandomHouse published author on PMs. Jim has also been involved in projects for CAC and Coinplex.
No comments yet.