A Snapshot of Silver vs. Gold

Just a quick snapshot on why I've been saying lately that silver is being given away... take a look at this 10-year snapshot of the price ratio of gold to silver:

(chart above by stockcharts.com) 

Because silver got halved while gold merely corrected by approximately 20%, one ounce of the yellow metal now buys about 75 ounces of silver. As you can see in the chart above, silver hasn't been this inexpensive compared to gold at any point in this precious metals bull market.

There's a reason for this: silver trades as a sort of proxy for gold, which leads to investors selling it first in downturns and buying it last during sustained rallies.

Anyway, if you think today's stimulus and bailout plans are setting the stage for an inflation resurgence, silver offers more upside if a precious metals rally results. Consider SLV, the silver ETF.