SILVER is the new GOLD

Gold has hit an all-time high of $1,250. The flight-to-safety trade is starting to take on a different flight pattern away from U.S. treasury bonds to Gold. We are starting to establish a real base of support for Gold prices at the $1,200 level. The sovereign debt concerns in Europe (1.00 Dollar = 1.19 Euro) are beginning to shed light on to a much larger global sovereign debt problem that stretches around the globe from the U.K. to the U.S. Bill Gross of Pimco was recently quoted as saying that the 30 year bull market for bonds is over.

As Gold continues to soar to new heights the sister precious metal Silver has not moved in tandem. The New York Post has recently reported that J.P. Morgan is under investigation for manipulation of the Silver futures market. The allegation is that Morgan pushed down Silver prices when bullish news broke during 2009 to keep the price surpressed.

The historical relationship between Gold and Silver has been 20:1 which means that Silver is historically priced at 5% of Gold. Within the Roman Empire, Silver was acknowledge to always be priced at 10% of Gold, however, the supply of Silver during that time period was much more limited. Therefore, even at a 20:1 ratio Silver would now be priced at $62.50!!!

Current Price: $18.00 per troy oz.

http://www.bloomberg.com/markets/commodities/cfutures.html

The best way to buy Silver (other than physical), is SLV for unleverage or AGQ for 2x leverage.