Would Buying Silver Today be Like Buying Gold at Around $550?

Many wonder which is better to buy at this time – gold or silver?

An analysis by Hubert Moolman explains how buying silver today at around $30 per ounce is like buying gold when it was $554 an ounce.

According to Hubert, silver is currently trading at around 60% of its 1980 high of $50. If gold were trading at 60 or so percent of its high, it would currently be around $550. Hubert says gold is still attractive at its current price. However, silver can be purchased for much less then traded for gold when the gold/ratio bottoms out.

When the gold to silver ratio falls, silver will perform better. Currently, the ratio stands at around 50:1 but it could very well fall to below 20:1. This ratio simply means it takes x ounces of silver to purchase 1 ounce of gold. Therefore, it currently takes around 50 ounces of silver to buy one ounce of gold.

For Hubert’s idea to work, silver would need to outperform gold over the investment period or at least equal gold’s performance relative to its 1980 high.

Therefore, if gold reaches a multiple of 5 times its 1980 high, it will be $4250 per ounce. If silver does the same, it will be $250 per ounce. This would equal a gold/silver ratio of 17:1.

If Hubert’s analysis is correct, it would be to his and others’ benefit to buy silver bullion now and swap it for gold once the ratio has gone down.  Check out his charts on gold/silver ratio as well as his commentary on the gold bull market. According to Hubert’s chart, the two metals are at a major crossroads relative to each other. The ratio could either go up or down.

Many of us here have focused more on silver in the hope and expectation the gold/silver ratio will go down. We’re certainly keeping our fingers crossed!!