SelectReserve CacheTv Open an Account
SelectReserve CacheTv Live Charts
Request More information on on gold, silver, coin, currency and learn about the value of mint and precious metals. We provide information on silver bullion and buying gold
Get on Board with RRSP & TFSA  - Invest in Physical Gold & Silver through your Cache Metals Account
Cache Metals Store - Browse through our Fabricated Bullion Products As Seen and Heard on AM640 and other Toronto Radio Stations
Click to Subscribe to Cache Metals Newsletter
Win a 1 OZ Gold MAple Leaf from Cache
Cache Metals Delivers the latest in business and metals market news.
 INDEX  >  Can they pay it back? - The U.S. is about to go broke and they’ll take us down with them

  Published by Monday, April 7 2009      By: Reuters Staff

For many years consumers and investors have favoured gold, but persistently high prices mean the time has come for silver to reassert its credentials as a jewellery material and a store of value.

"In India you have people who can only afford silver and people who will only buy gold, but there are a large number of people in the middle who will rotate from gold to silver," said Ashok Shah, chief investment officer at London & Capital.

That phenomenon is likely to be repeated in other countries as unemployment, salary cuts and potential tax rises take their toll on consumer spending, analysts said.

   Is silver the new gold? Photo: REUTERS

Gold used as a hedge against financial uncertainty, flew through $1,000 an ounce to an 11-month high on February 20 at the height of the banking crisis.

Prices have tumbled about 13pc to around $875 an ounce since then, while silver has fallen 16pc to about $12.20 an ounce from a six-month $14.60 peak in February.

"Silver over the last 30 years has been the poor cousin. In the first half of the last century gold and silver were on a similar footing in terms of monetary value and their roles as safe havens," said Eugen Weinberg, an analyst at Commerzbank.

A measure of value is the ratio of gold to silver prices, which in the last century fell as low as 14 and compares with levels around 70 now – suggesting gold is overvalued.

He added: "The ratio could drop to between 40 and 50 in the medium term," Weinberg said. "People who cannot afford to buy gold for jewellery will buy silver."

Since the early 1980s the ratio has averaged about 65 and mostly ranged between 30 and 100.

Figures around 100 were last seen in early 1991 after Iraq's invasion of Kuwait fuelled security concerns and a surge in oil prices raised the spectre of rampant inflation, boosting gold's allure as a hedge against financial uncertainty.

Worries about price pressures in the pipeline because of the large amounts of money being pumped into the economy by central banks and governments are expected to support prices of both metals over the next few years.

But in the short term silver and gold prices could slip as investors switch back to riskier assets such as equities on expectations of stronger growth and industrial output.

If a real uptick in growth does materialise, silver will remain relatively unscathed as it is used in industries such as electronics, aerospace and defence.

"Gold will suffer ... Silver will too, but this impact may be relatively muted by the recovery in industrial demand," said David Thurtell, an analyst at Citigroup."We would suggest that the gold/silver ratio will push down towards the 50-55 level by the end of third quarter."

Industrial demand for silver, including from the photography industry, is reckoned to be about 65 per cent of total global supplies estimated at 895 tonnes. For gold industrial and dental demand the figure is about 11 per cent of supplies estimated at around 3,880 tonnes, according to consultants GFMS.

Part of the boost for silver will come from investment demand. With gold prices still near $900 an ounce holdings of exchange traded silver funds are expected to rise.

The iShares Silver Trust, the largest silver-backed exchange traded fund listed in New York, holds a record 8,413 tonnes, a gain of more than 20 per cent since early January.

That compares with a more than 40 per cent rise in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, with holdings near record highs of 1,127 tonnes.

"Some people may be slightly more positive on silver to outperform gold on strong investment demands," said Adrian Koh, an analyst at Phillip Futures.  Article Source

CALL 1-416-916-6660 and book an appointment with a Cache Metals Precious Metals Market specialists
© 2011 Cache Metals Inc.   |   International Bullion Wholesalers
Tel: 416.916.6660    Toll Free: 1.877.916.6670    Fax: 416.916.6702   [email protected]
ICTAICANN-Accredited Registrars Powered by ActiveTvNetworks     
As with all investments, the price of precious metals changes rapidly, and as such should be considered volatile. Upon entering the metals market, the risk of loss is solely that of the client. Only individuals who are capable of sustaining a capital loss should consider purchasing precious metals. Acquisitions in precious metals which are financed are considered high risk.
Active TV Networks - ATVN & Active TV powered this website. Visit Madcap Media Inc or and atvn for your niche web development needs, including CMS.
gold, silver, coin, currency, value, coins, mint, precious, buy gold, stock price, metals, gold price, gold silver, bullion, maple leaf, gold coins, silver dollar, gold prices, prices gold, gold and silver, gold coin, gold rate, gold bullion, gold live, bullion gold, silver coins, price of gold, silver price, buying gold, live price, gold bar, current price, silver bullion, bullion coins, bullion silver, bullion bars, spot gold, gold bars, gold spot, market price, silver prices, silver coin, sell gold, gold today, krugerrand, gold market, precious metals, metals precious, gold chart, price in gold, silver bars, precious metal, gold coins bullion, gold bullion coins, silver dollars, coin collecting, rare coins, gold rates, gold ounce, gold current, buy silver, silver bullion coins, silver coins bullion, gold value, silver bar, gold stock, gold kitco, silver spot, gold investment, platinum price, selling gold, gold etf, ounce price, gold price today, spot gold price, gold spot price, gold price india, gold price spot, gold trading, gold stocks, current gold price, copper metal, numismatics, troy ounce, gold price ounce, today gold prices, gold price in india, gold dealers, gold investing, gold index, gold price per ounce, gold price gram, krugerrands, gold quotes, gold futures, gold invest, gold charts, gold price chart, live gold prices,live gold price, bullion bar,how to buy gold, gold quote, krugerrand gold, buy gold coins, gold spot prices, spot gold prices, current gold prices, platinum prices, silver spot price, base metals, buy bullion, us gold coins, gold comex, gold price market, current price of gold, price for gold, the price of gold, price of gold today, gold and silver prices, price of gold per ounce, gold funds, gold market price, bullion coin, e bullion, buying silver, buy gold bullion, gold price history, bullion dealers, bullion market, gold bullion buy, gold bullion bar, silver investment, bullion price, silver gold price, gold coin prices, today's gold price, gold price oz, todays gold price, precious gold, iron metals, bullion direct, silver bullion bar, silver bar bullion, gold markets, kitco price, gold coin price, prices of gold, gold and price The History of Metals,Bullion - A better Alternative,Investments,Silver Bullion,Buy Silver Bullion,Bullion, Gold Information,Gold Investments, How To Invest In Gold , Precious Metal Investments, American Dollar, U.S. Economy, Information On American Economy, Investments In Gold And Silver, Investing In Silver, Dollar Devaluation, Devaluation Of The U.S. Dollar, Dollar Investments, Information About Gold, Global Economy, Global Economy History, Gold Bullion Buyers, Gold Bullion Sellers, Investing Information, Investment Kits, Gold Investors, Silver Investments, Silver Prices, Gold Prices, Gold And Silver Prices, Precious Metal Prices, Precious Metal Traiding, Investment Roll Papers, Investment Planning Papers, Precious Metals, Metals Price History, Daily Silver, Daily Gold, Daily Platinum, Register, Bullion Coins, Bullion Dealers, Bullion Investing, Bullion Investing Firms, Bullion Investments, Bullion Sales, Bullion Trading Sites, Buy And Sell Gold Bullion, Buy Bullion, Buy Gold Bullion Now, Buy Gold Bullion Online, Buy Gold Coin Bullion, Buying Gold Bullion, Buy Precious Metals, Current Gold Bullion Prices, Gold And Silver Bullion Coins, Gold And Silver Bullion Dealers, Gold And Silver Bullion Prices, Gold And Silver Coin Bullion, Gold And Silver Coins, Gold and Silver Investments, Gold Bullion Brokers, Gold Bullion Buyers,  Gold Bullion Sellers, Gold Bullion Stocks, Gold Coin Investing, Gold Coin Investments, Gold Info, Gold Information, Gold Investing, Gold Investments Kits, Gold Investments, Gold Investments Online, Gold Investors, Gold Market Prices, Gold Market Quotes, Gold Prices Information, Good Gold Investments, How To Invest In Gold, How To Invest In Silver, Invest In Bullion, Investing In Gold And Silver, Investing In Gold Bullion, Investing In Gold Coins, Investing In Silver, Investing In Silver Bullion, Investing In Silver Bullion Coins, Invest In Gold, Invest In Gold Bullion, Invest In Silver, Online Gold Investing, Investments In Gold, Precious Metal Dealers, Precious Metal Exchange, Precious Metal Investing, Precious Metal Market Quotes, Precious Metal Investments, Purchase Of Gold Bullion, Safe Gold Investments, Silver Bullion Coin, Silver Bullion Coin Investing, Silver Bullion Dealers, Silver Bullion Online, Silver Bullion Quotes, Silver Bullion Sales, Silver Coin Investing,Silver Bullion Dealers, Silver Coin Prices, Silver Bullion Market Information, Silver Bullion Online, Silver Bullion Price Guide, Silver Info, Silver Information, Silver Investment Kits, Silver Investments, Silver Investors, Silver Market Quotes, Silver Market Prices, Trading Gold, Trading Silver, USA Bullion Rates, Gold Bullion, US Gold Bullion, US Gold Bullion Coins, US Silver Bullion Coin, Where To Buy Gold Bullion, Why Invest In Silver Bullion
Cache Metals Inc - Home PageCacheMetals Statements Cache Metals Inc - About the Canadian Bullion Wholesaler Cache Metals Inc - Bullion Information on Gold Silver Platinum Cache Metals Inc - Register for an account today and start saving money Cache Metals Inc - Freqently Asked Questions about Bullions Cache Metals Inc - Contact Page