Silver Quote of the Week

As the Gold : Silver ratio sticks above the 70 mark legendary silver analyst Ted Butler had this to say:

“Silver's recent relative weakness compared to gold is not, to my mind, a harbinger for what will evolve over time. In fact, it seems almost impossible to me for silver not to vastly outperform gold over time (although I am solidly bullish about gold's immediate price prospects). The compelling relative factors revolve around how each metal is used (silver being consumed, gold being held for wealth and jewellery) and the resultant mismatch over how much of each exists in the world, particularly in dollar terms.

I would be overstating the case if I declared that even as many as one-tenth of one percent of the world's inhabitants actually know that there was vastly more gold in the world than silver, especially in dollar terms. Most people logically assume that an item 70 times more expensive than another similar item would be much rarer. Not only is this not the case with gold and silver in terms of physical ounces, where there is more gold than equivalent silver by a factor of two or three; when the comparison is made in terms of dollar value, the total amount of gold exceeds the amount of silver by as much as 200 times. Yes, I am saying that there is as much as 200 times more gold in the world than silver in terms of the total dollar value of each. All the world's gold is valued at more than $6.5 trillion (5.5 billion oz x $1200) compared to the value of the world's silver of $35 billion (2 billion oz, including coins, x $17.50).”

To put this into perspective we’ve posted an excellent article from Bill Holter today which speaks to gold mainly and so gives you his views on the base of this ratio.