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[ThatHawaiiGuy]

WHICH METAL WILL SHINE: SILVER OR GOLD?

Does it matter which metal is purchased, silver or gold? The interesting reality is that it does matter. Celebrated investors such as Warren Buffett, Bill Gates and George Soros have been demonstrating with their wallets, a firm belief in the shimmering metal, silver. In fact, Warren Buffet has invested over $500 million in silver with his purchase of 129 million ounces. Bill Gates, invested $10 million of his personal estate into the Pan American Silver company. Lastly, George Soros and his brother own 26% of the Apex Silver Mines (8.) Why do these distinguished financiers desire to own solid positions in silver interests, as opposed to gold? Because, silver is remarkably undervalued and is rebounding after 100 years of lower prices.

Indeed, there are numerous arguments in favor of silver as the metal of investing choice, far too many for the scope of this article. Yet this point is critical, when metals gained popularity in the past, one ounce of gold could purchase 16 ounces of silver. Currently, one gold ounce can buy 70+ silver ounces! This indicates that silver represents a 5 fold, or 500%, discount relative to gold.

CONCLUSION

Clearly, the answer to the statement: to buy or not to buy precious metals--is yes. Technical analysis is suggesting that an incredible shift is occurring within the trend of precious metals prices. The centuries long decline in metals prices appears to have reached its conclusion and a new trend of higher prices is emerging. Fundamental analysis is revealing that the price of silver is recovering from a recent 100 year low and is as much as 500% less expensive than its shinny cousin - gold. Additionally, the specter of higher commodities prices and the potential for significant inflation is looming overhead, like The Sword of Damocles.

Undoubtedly, given the conditions outlined in this text, one investment can pledge capital safety while offering substantial profits: silver. Perhaps a line from William Shakespeares' timeless work, Julius Caesar, best captures the incredible opportunity manifesting within the silver market: "There is a tide in the affairs of men -- Which, taken at the flood, leads on to fortune"(9).

The whole thing with nifty neat charts and graphs:

http://www.gold-eagle.com/editorials_03/waltzek091003.html