profitconfidential.com / By Michael Lombardi, MBA / Wednesday, January 23rd, 2013
As I have written in these pages before, I expect silver prices to outperform gold prices in the years ahead. That opinion hasn’t changed.
As gold prices started their flight upwards back in 2002, silver prices followed a similar pattern. Below is a price chart of monthly silver prices since 2001—when gold was trading just below $300.00 an ounce.
Silver prices traded as low as $4.00 an ounce in late 2001 and climbed to highs of almost $50.00 an ounce in 2011. While silver prices have retraced a bit, the metal is still up more than 675% from its lows in 2001. Meanwhile, gold prices have risen by about 466%; from $300.00 to around $1,700 an ounce today.
I see a future where silver will become the focus of investors, while gold will be bought by the central banks. We are starting to see that happen at accelerated pace now. You have read extensive articles in Profit Confidential documenting the gold buying of many central banks. And investors are already rushing to buy silver.