Get ready for gold's catch-up to silver

The price of silver in Rand terms has shot up over 120% since middle 2010, while the price of gold has ‘only’ increased 22%.   The same economic fundamentals drive these two metals, being currency debasement and the certainty of major government debt defaults in the future.  The difference between the two in the here and now is that the supply shortages in the physical silver market has been exposed before those of gold.  Gold will catch up, of that we are certain.  Just like oil underperformed other commodities throughout most of 2009 and early 2010, and had various stars align in Q4/Q1, from QE2 to the Egypt half-revolution, to the spreading unrest in the Middle East, to the Libya war, gold will soon see its stars align and see a powerful rally.  A 100% from here? That would take us to levels of R20,500/oz.  Hold onto your hats, folks! And be careful to those hedge fund boytjies that are still short the juniors/long the metals.  You’re gonna get roasted when these gold stocks shoot!

Get ready for catch-up!!

Get ready for catch-up!! (Note: XAU-ZAR is red line, XAG-ZAR is black line)

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