Is it a good time to buy silver?

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It has been the lowest I have seen in a very long time. Like 15.50$ an ounce yesterday, and it just went up 1$. I know buying gold would be just...??? I don't think so. The average % between the two doesn't even make sence to me? It seems as if one or the other needs to go up or down, like alot.

What is your opinion?

Neodymium or cobalt would make more sense; every electronic device that produces sound requires a magnet, whether a cellphone or ginormous subwoofer. They are essential and somewhat more under-the-radar with commodities traders, and since neither gold nor silver are pegged to US currency their value is artificially inflated and not as stable as popular opinion would dictate. You could also keep a ton of a rare earth element in plain view of everyone without turning your residence into a fortress and without fear of the government confiscating it

Yes, silver is trading at about one seventieth of the price of gold, whereas in the era of coinage based on precious metals, it was about one fifteenth.

Thus it could be argued that silver is now massively underpriced, but if that were really the case this "anomaly" would long since have been corrected as "knowledgeable" buyers flooded in to take advantage, thus forcing the price back up to somewhere near its former ratio vis a vis gold (ie to about $80 per ounce).

And if it's the price of gold which has been anomalous, it should by now have fallen to around $200, as opposed to $1100.

It seems clear that the old ratio is no longer valid, and it is by no means obvious that it will be re-established.

I believe that "fair value" for gold is around $1200 per ounce, and for silver around $20.

Yes, silver may well spike to $50 or over in the next few years, as in 1980 and 2011, but these spikes are driven by speculators and are very short-lived. You have to know exactly what you're doing, move quickly and have a buyer who is willing to pay you the market price (very few will).

Nice. Those are both good explanations. Thank you.

2wheels4ever,

How about platinum, and palladium? These are both precious metals that are used in catalytic converters for automobiles. It is in very high demand. I guess since you got off topic with other metals, that came to mind. I will look into it some more.

I love bikes too! You pedal, or motor?