You might noticed that on Monday (August 15, 2011), the spot price of gold [1] was fairly flat, but that spot silver was up substantially [2].
Just as I predicted last week, it appears that Mr. Market has belatedly realized that silver needs to catch up to the recent advance in gold prices. To get back to a 40-to-1 ratio, silver would have to advance to $43.41 per ounce.
In the long run, a ratio of 20-to-1 or perhaps even 16-to-1 is realistic. So again, if you have enough secure storage space, then buy silver rather than gold.
If you want to ratio trade out of gold into silver, I recommend that you do so soon.
And in related news, did you notice that spot platinum [3] has jumped to $1,796 per ounce? Last week, I had mentioned that gold jumped up to within $2 of the price of platinum. But that didn’t last. It doesn’t take long for disparities to get worked out in a free market, or even in a quasi-free market.