The downward swoon of the stocks has been long in coming and just the same thing for the precious metals heading north. How far down will the stock market go down and how high will the PM's rise?
Gold looks like a shoe-in at $800, maybe a tad over. Silver will be struggling to go over $15.00 and that is based on factors of stagflation - lowered economic activity with rising inflation. Until the investment community and some of the masses get wind of the fundamentals of silver and the great opportunity available, Silver will be a laggard.
The sales funnel for a business can be applied to the investment prospects for precious metals versus stocks and bonds or commodities. The more salesmen you have, the more you are likely to sell. The bigger the advertising in a business area or product the bigger the sales - generally speaking.
Only now are we seeing some gold ads on tv, none for silver. So gold has a much larger sales base and is more difficult to suppress. Silver is there for the squashing.
Bottom line - Gold to $800+ by end of year, early 2008, and silver crawling over $15 in the same time frame. Boo, hiss, my options may only be slightly profitable by then, better than a poke in the eye, but not the $18 dollar rain of profit I had expected.
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