Price of gold went up the hill, Price of Silver Sailed through Space!

The turmoil in the Arab world has brought oil prices to a 29 months high as the Libyan Dictator Muhd Qadaffi refuse to step down from his position that he had held over 40 years, amid mass protest and demonstrations. Such incident was not the first of it's kind. During the past few months, the world witnessed a regional uprising among some of the arab countries and China?. Reasons can be attributed to the rising food price, the citizens consciousness for more democracy and rights and of cause the result of years of suffering under a regime that had not help the country to progress much into a modern society.

Politics aside, investors took opportunity of the mayhem and seek safe havens in commodities especially in oil, gold and silver. While Gold has hit consecutive all time highs in the past weeks. In terms of percentage yield, silver has been a more favorable bet as investor could potentially realize at least a 30% profit if they were to put their money into silver since the end of January. While the previous year has seen the rise of silver of up to 80%. The beginning of the year saw some draw backs and then the resumption of its bullish behavior yet again noticeably during the whole month of February.

Silver all time high goes all the way back 30 years ago at the price of $49USD/Oz and back to $10 some time later in due to market manipulation by two infamous traders. Until then Silver had not seen the light until 2009. There are assumptions that silver trade on the scale known as the Gold and Silver Ratio thought to be in the range of 11-14 historically until recently where gold price surged to a number of all time high as silver stubbornly lags behind, messing up the ratio to an uneven proportion. The Ratio today is almost 40 and if the trading mentality still persists, silver should range between $80-100 USD /OZ at the current rate. So for people who are looking to get into these so called safehavens, i recommend you to get into silver but take precaution that this surge in price is technically caused by the middle east crises and may not be a sustainable bet. The price that i predict most investors would wanna see is at 40usd/oz and then if the situation stabilises in the middle east, we'll probably see huge profit takings and silver will grace back its 25-30USD/oz range again. Pure technical play here.

Verdict: Long term play for silver is the best bet, but look for any pull back before getting vested as this 30 years record price seems unsustainable if not unreal.

Declaration: All opinions are my own and i shall not be liable for any losses caused by my assumptions and analysis.