Silver

Gold is Cheap Relative to Other Commodities

I am surprised at how many misconceptions there are about gold. One commonly held fallacy is that gold is purely a commodity, which ignores the monetary function of gold. Gold bashers will ignore the monetary function of gold when arguing that gold has no inherent value, making it overvalued at current prices. Without getting into why this presumption is incorrect, let’s assume for a second that gold is purely a…

The Incredible, Indestructable Gold Bubble!

The recent price action in gold suggests the bull train is leaving the station, leaving the ‘gold-is-a-bubble-crowd’ in the dust…again. The point of investing is making money, but there is apparently a school of investing thought intent on catching bubbles and getting burned in the process. I refuse to join this crowd, and instead choose to ride a clear trend to its conclusion. Whenever I’m in doubt about the gold…

Gold: Time to Start Buying Again?

The past 5 months have proven that the faint of heart should not be investing in the gold sector. When the majority of investors thought gold was overbought at $1,100, gold went parabolic in short order. Then, right when the mainstream media started catching on to the performance of gold, I felt the correction was near, and gold promptly sold off. Looking at the chart above, you can see that…

Silver Still Cheap?

Over the past 4 months, silver has been on quite a roll, appreciating over 40%, and outperforming all asset classes. With gold up “only” about 20% in that time frame, one would think that silver is relatively overvalued. Hence the general fear in buying silver at current prices. However, the gold to silver ratio is currently sitting at slightly above 60, while the historic gold to silver ratio is 50….

Gold and Silver: What Lies Ahead?

The long awaited breakout for gold has arrived, bringing varying viewpoints on what lies ahead for the yellow metal. Silver has also busted out in a big way, and looks poised to test recent highs from 2008. Now that everyone is eyeing the sector, what lies ahead for precious metals? Lets start with silver. Silver has outperformed gold by over 3 times in 2009, but is nowhere near its all-time…