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S&P 500: 1,340.35 Change: -0.84%
Vet67to82
P&P Score: 29.13 | Points: -21.00 | Accuracy: 69.88 | Average Pick Score: -1.27   Annual Return: N/A  
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Commentary
BUY: ISHARES SILVER TRUST (SLV) Rating: 2
Start Price: $18.25
Points: +6.35
Created: 11/24/2009
For every ounce of Gold we find in nature ... we find about 16 ounces of Silver. Gold is primarily stored and used, as bullion, coins, or jewelry. Silver has industrial and medical uses in addition to its use in jewelry, coins, and bullion. The Silver to Gold ratio therein is 16 to 1, yet we find, historically, that silver trades, on average, at a 50 to 1 ratio. At current prices: with Gold at $1148.50 + 6.60 and Silver at $18.48 +0.02 ... that ratio is now 62 to 1.

** I find silver is SERIOUSLY undervalued. With Gold at $1148.50 a 50:1 ratio would value silver at $22.97 ...

** If silver were value per its ratio 16:1 as found in the environment ... then silver would be valued at $71.78 ....

2 Comment(s):

Author Vet67to82     Date 2009-12-18 12:04:19
Gold Signals Possible New Shock

******* http://numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=9025

I agree with the history in the above link ... but, based on the fundamentals, and the Gold/Silver ratio ... silver offers the best risk/reward ratio
Author Vet67to82     Date 2010-09-01 15:56:48
Hit my short term goal of +5% in a week. Gotta take profits before the market takes them away.
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