Provided Gold is a hedge against inflation, and its international demand remains stable Its price should rise with inflation. Historically Gold has risen and lowed with inflation and deflation cycles. Silver has remained within a historical range of Gold and also is subject to fluctuations. The historical standard of 20-1 is really not applicable because this was set by governments and not market forces. Regardless, Silver and Golds Price in relation to the USD appears to be greatly undervalued when compared to Inflation within the US. This could be that both Silver and Gold world wide are "undervalued" Or the USD is "overvalued" We are long on SILVER and GOLD as inflationary forces set in place by quantitative easing appears to not have had effect on the Prices of these Industrial commodities and monetary units.
25th april 2011 gold silver ratio hit 31.44 - i wouldn't consider selling silver until it reaches at least this level imo - DYOR etc - Gold is a great savings vehicle for fiat garbage which is losing its purchasing power and making all time highs in most currencies except the dollar but that should change soon enough- the market hissy fit will ensure the Fed is forced to reduce rates to 0 and restart QE- junkies need their drugs
Entellusinvestments
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@iminlovewithscarlett, Agreed, I am not selling Silver, just stating the it appears silver and Gold are undervalued, silver more undervalued than GOLD, as I am sure you are aware. 25th of April Silver was way over bought and priced for its time. But after Dec 2012 it became over sold and is still over shorted today. I am long silver Should be priced around 50 Today. I am expecting after the next recession a rise and dip settling in about 30-50 dollar range, not dropping below 30.
Bullandbeartrading
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Good long view mate !
Entellusinvestments
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@Bullandbeartrading, Thanks, yes with Gold and Silver I believe it should be a very long term holding.