There has been much talk lately about gold and silver. You see pawn shops and jewelers buying it on every corner. I am not licensed to give financial advice, so I will limit the scope of this column to academics only. Precious metals go back in history for thousands of years.
Over the past 5,000 years, there has been a ratio of 12:1 between silver and gold. This means that silver is 12 times more abundant than gold, which means that (historically) gold is valued at 12 times silver. PMs are typically traded in ounces. Precious metals made a big comeback back during the highly inflationary era of the 1970’s.
It appears that they are re-emerging in a very similar fashion. In times of high inflation, people tend to run to real money. The only real money we have access to is gold and silver. I see this as an emerging trend that will continue for the next several years.