Thursday, July 28, 2011

5 year returns for GLD, SLV, Gold/Silver miners, Junior miners, Silver miners

A 5 year chart for GLD (Gold), SLV (Silver), GDX (Gold/Silver miners ETF), GDXJ (Junior miners ETF) and SIL (Silver miners ETF)

SLV -    240%
GLD -   149%
SIL -     73% (Started in spring of 2010, about 1.5 year history)
GDX -  49%
GDXJ - 43%

Silver started outperforming Gold from August 2010. If the rally never occurred, Gold would have been the leader at 149%.  Going forward, the Gold/Silver index should be dropping in the next few years.  Many long term Silver holders may start selling some of their positions when the Gold/Silver ratio is under 20. Some have stated that the Gold/Silver ratio may go down to the 10 area or slightly below.

If Gold hits $5000 an ounce, a 15/1 Gold/Silver ratio will put Silver at $333

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