Investors often wonder what thebest precious-metal play is and which one will perform better over time. Themost popular is gold for any number of reasons. The jewelry is prettier, theprice is higher or simply we have been trained that gold is just better.
From a pure numbers standpoint,the case should be made for silver as the best precious metal. The gold/silver ratio was designed at 15-1 but has continued to balloon over the years, gettingas high as almost 90-1. In 2011, the ratio was 40-1 and has slowly widened backto 80-1.
From a pure value play andpotential mean reversion, silver is a better investment than gold and willoutperform gold percentage-wise from here. Silver has a bigger upside purelybased on the raw numbers; adding in the industrial value and mathematics tellsyou silver is the play.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading