Silver Buying Opportunity on Relative Gold/Silver Price Pattern?

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Every time in the past two to three years a significant price differential has opened up with gold outperforming silver, the latter has been quick to catch up again. If one feels that the gold price is going to remain in its current strong position, and indeed move up further, then silver could prove to be an even better buy if that pattern repeats itself.

Investors in silver and silver stocks will be well aware that although the recent sharp rise in the gold price has helped lift the silver price with it, silver is currently trading well off its 2007 high point of over $14.50 an ounce, while the yellow metal is at around its highest levels since an exceedingly brief surge in May 2006.

The question now facing the silver investor is thus whether this represents a strong buying opportunity, or whether the price correlation pattern of the past couple of years between the two precious metals has entered a new phase?...

Every time in the past two to three years a significant price differential has opened up with gold outperforming silver, the latter has been quick to catch up again. If one feels that the gold price is going to remain in its current strong position, and indeed move up further, then silver could prove to be an even better buy if that pattern repeats itself.

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