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French bank predicts gold-silver ratio might rise

Release Date: 
Monday, December 13, 2010

 The ratio between the two top precious metals might rise as much as 20 percent, according to an analysis from the French bank Societe Generale.

The ratio dropped to 46.6 last week when one ounce of gold purchased 46.6 ounces of silver in London, representing the lowest amount in nearly four years. Precious metals are having a strong year as investors acquire gold and silver for an alternative to fiat currencies.

"The gold-silver ratio reached an important support at 47.5/46," Stephanie Aymes, a cross-commodity technical analyst with Societe Generale in London, told Bloomberg. "Gold will outperform silver to 56/58."

Thus far this year, gold's price has increased 26 percent as the precious metal tracks its 10th-straight year of annual gains. Silver prices have increased nearly 70 percent in 2010.

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guar­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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