Gold Vs Silver

He is assuming that there will be a QE3 type program. The Fed's comments today do not indicate that. This could change, of course, but not so far. Without QE3 to artificially pump up the prices of stocks and PMs, they will have to rise or fall on their own. Fed comments about low interest rates being continued for at least the next 18 months weakened the dollar and strengthened all PMs but silver.

Silver is a better value than gold. I would/do buy silver.

Silver is King.

A lot of folks are exchanging silver into gold even at these levels. I was surprised when I saw it first hand yesterday and it's being talked about on some other forums. There is even one here on the sell forum where the seller states wanting to buy gold with the sales proceeds.

No QE III and yesterdays collapse in interest rates to near zero on the 2 year note indicate that the S&P 500 as a basket has a better rate of return (dividends) as long as the portfolio is hedged etc. Monday august 8th 2011 was the third time in history when the US stocks hit these over sold levels. This could be adding more selling in silver as folks switch things around (move back into stocks). It took the hedgies a while to put these trades on and will take a while to undo / unwind the trades.

Also, Gold is way over extended to the upside and due for a pull back...not sure when / how it will happen. The question is... How will silver react when gold gets sold or stalls out?

First of all it is a very good time to sell silver unless you just got into the silver market. Even with the big swing with gold silver has out performed gold over the past 5 years $208% to 170%. In addition if you bought just only a year back silver still did better than gold 108% to 45%.

So those that have been in the silver market have seen some good times.

You can do two things sell at a nice high or hold speculating it is no where near the high. I am assuming of course you didn't get caught up in the PM rush recently then wanted a fast return.