If you check out all the precious metal analyst, they all say that silver has more potential than gold:
Their reasons are :
- All the mined gold still exist, silver is consumed and there not much stockpile out there.
- Very high ratio of silver bullion shorting as compared to gold
- Long term historical ratio of gold price / silver price is around 16. Current ratio is 52 . Silver price could triple to get back to this ratio,
- Aroung 60% of the silver that is produced is a by-product of other mined minerals. A slow down in the economy will create less demand of the basic metal and also a shortage of silver.
For these reasons, I have twice as more exposure to silver as compared to gold.