By Peter Cooper
ArabianMoney.net
Silver will return to “something close to its historical ratio to gold” and pass $500 an ounce when gold makes its epic run from $1,300 to $10,000-plus predicts The Money Bubble, a new book from GoldMoney.com founder and former head of commodities for the Abu Dhabi Investment Authority, James Turk and John Rubino.
The authors explain in great depth how gold prices will grow and grow in a spectacular blow-off as global money printing finally gets out of control. Think of it as the 1970-80 gold price explosion on steroids. The silver price is leveraged against gold, and outperforms on the way up and vice-versa.
Silver is a substitute for gold when prices go too high. The authors cite the record 6,000 tonnes of silver imported by India last year, an amount equivalent to 20 per cent of global mine production, as a classic case of substitution for gold when a 10 per cent tax made the yellow metal expensive.