Silver Or Gold, Which Is The Better Investment?

By Investment Directions: For the reasons described in "Gold, Silver At A Crossroads" and "Time To Buy Or Sell Gold?" I shorted gold and silver when their prices broke on February 29.

By Shaun Connell:I don't think I've read a bullish article about silver over the last couple of years that didn't make the point that because there is more above-ground gold, silver prices must be undervalued. This is a complete myth for several reasons that I'll be explaining here. Don't get me wrong, though. I like silver and own a lot and buy some every month. I'll probably be buying some this week. But I have different reasons than the argument I'll be addressing today.

By Another Joe:In recent years, the silver to gold ratio has received greater attention. This is likely because of increasing realization that the ratio seems to directly contradict price levels. Such realization is augmented by the fact that much of the silver mined today is used industrially, rendering it much more difficult to recover.

By Eric Sprott Why are (Smart) Investors Buying 50 Times More Physical Silver than Gold?

Irfan Chaudhry submits: Precious metals outperformed most asset classes over a 3, 5 and 10 year period. Silver was a little late to the party. Silver is a business cycle sensitive investment against gold, which is a fear / value / wealth trade. Silver fell to its lowest level relative to gold in early 2009 as the silver price went as low as at $8.92, which was 84th of an ounce of gold. However, as the business cycle turned, it became one of the best performing assets in 2010.

ByChristopher F. Davis: A few reasons to be bullish on silver

By Parsimony Investment Research:The ongoing European fiscal crisis has recently driven investors to seek the US dollar as a "safe haven" over precious metals. As shown in the chart below, the US Dollar Index is up 5.5% in May and it has been up 20 of the past 22 trading sessions.

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.According to BCA Research, silver’s risk/reward trade off is neutral.