Aurcana Silver Corp V.AUN.H

RE: gold up almost 1%

[JonEcash]

PATTERN REPETITION? Silver buying opportunity on relative gold/silver price pattern? Gold has outperformed silver quite sharply since the start of the subrime mortgage fiasco. Is it time for the latter to play catch-up. Author: Lawrence Williams Posted: Sunday , 16 Sep 2007 LONDON - Investors in silver and silver stocks will be well aware that although the recent sharp rise in the gold price has helped lift the silver price with it, silver is currently trading well off its 2007 high point of over $14.50 an ounce, while the yellow metal is at around its highest levels since an exceedingly brief surge in May 2006. The question now facing the silver investor is thus whether this represents a strong buying opportunity, or whether the price correlation pattern of the past couple of years between the two precious metals has entered a new phase? Silver investors love quoting the fact that in years past the overall price differential between silver and gold has been far far lower than it is nowadays, and using that fact as a reason for suggesting the silver price should be several times higher than it is today. Alas, I suspect those days are long past. However, recently the price move correlations between silver and gold have been remarkably close, with silver frequently outperforming gold until the recent runup in the price of the latter where silver has been quicker to fall and slower to rise.. Silver is not really a ‘safe haven' in the sense that gold is, given its much larger industrial usage profile. But even so, recent price performance of the two metals over the past few years suggests the current differential may well mean a good buying opportunity for the silver investor. Every time in the past two to three years a significant price differential has opened up with gold outperforming silver, the latter has been quick to catch up again. If one feels that the gold price is going to remain in its current strong position, and indeed move up further, then silver could prove to be an even better buy if that pattern repeats itself.