Anyone who watches the precious metals charts or who buys gold and silver will have noticed that their spot prices move in tandem, even though gold is much more valuable. In other words if gold is moving up or down, so will silver, so that the daily and weekly and monthly charts will look similar, even though the scales are wildly different. So silver reflected gold's recent $25 drop on the charts, even though it only dropped by 40 cents, as gold is worth $1126.70 an ounce and silver is worth about $18.20 an ounce currently.

Why would this matter to a collector of gold bullion coins? Some commentators are predicting that demand for (and the price of) silver will increase substantially this year, as manufacturers who use it in their products start to replenish their stocks after years of cost cutting. Many leading edge technologies predicted to grow in the future such as hybrid car batteries require the use of silver. Full article here.

The usual caveat: no one really knows where the price of gold will go this year, though it does no harm to follow the more informed predictions.

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