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Message: silver up against all currencies last year
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this is from james turk's year end analysis:
While 2009 was a good year for gold, it was a great year for silver. It rose against all nine of the major world currencies, including a 53.0% gain against the Japanese yen and more spectacular gains ranging from 42.6% to 49.4% against five other currencies. Its results are presented in the following table.
| 2001 | -0.1% | 8.5% | 6.1% | -0.1% | 5.3% | 3.1% | 14.4% | 2.3% | 2.7% |
| 2002 | 4.8% | -4.6% | 4.0% | 4.9% | -11.0% | 4.3% | -5.0% | -12.6% | -5.3% |
| 2003 | 24.0% | -7.3% | 1.4% | 23.9% | 3.2% | 17.7% | 11.9% | 11.0% | 11.9% |
| 2004 | 14.3% | 10.2% | 6.5% | 14.3% | 6.4% | 8.6% | 9.6% | 5.4% | 6.5% |
| 2005 | 29.6% | 37.7% | 25.5% | 26.3% | 48.1% | 34.6% | 48.8% | 49.3% | 44.4% |
| 2006 | 45.3% | 35.3% | 45.3% | 40.5% | 30.4% | 42.6% | 46.7% | 34.8% | 27.5% |
| 2007 | 15.4% | 3.7% | -2.1% | 7.9% | 4.3% | 3.1% | 8.3% | 7.2% | 13.9% |
| 2008 | -23.8% | -4.3% | -5.7% | -28.8% | -20.1% | -6.1% | -38.1% | -28.2% | 3.4% |
| 2009 | 49.3% | 16.0% | 28.2% | 49.4% | 45.1% | 42.6% | 53.0% | 44.8% | 35.0% |
| Average | 17.6% | 10.6% | 12.1% | 15.4% | 12.4% | 16.7% | 16.6% | 12.7% | 15.6% |
The above table makes clear silver's volatility. Silver also fits well within a long-term accumulation plan, but only if you are prepared to accept the volatility that comes with it. The reward for doing so will be that silver outperforms gold over the long-run, as is already becoming evident. By comparing the average annual rates of return in the above tables, silver has done better than gold in five of nine currencies, and is not too far behind in the other four.
Given that that it presently takes 65 ounces of silver to purchase one ounce of gold, and that their historical ratio is about 16-to-1, a weighting of 67% gold and 33% silver for your bullion holdings continues to make sense. If the ratio falls to 20-to-1, for example, those percentage weightings will almost reverse solely because of silver's outperformance compared to gold.
To conclude, we should assume that gold and silver will appreciate again in 2010, and the reasons have not changed from those factors that drove the metals higher in 2009. So I would like to end with the same words from one year ago. The precious metals will climb in 2010 "given the path chosen by central banks in general and the Federal Reserve in particular. After all, who wants to own any national currency when the interest income one can receive is less than the inflation rate? Who wants to own any national currency when counterparty risk makes repayment uncertain? In short, the interest income available today on any national currency does not fully compensate for the risks one takes when holding that currency. So why lose sleep from worrying about holding national currency and what the Federal Reserve or some other central bank will do to that currency? Own the precious metals instead. But as I repeatedly emphasize, own physical gold and physical silver. Own the real thing, and do not accept paper substitutes."
http://goldmoney.com/commentary-gold-shines-for-the-ninth-consecutive-year.html
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