This debate has been gaining steam as the the global financial crisis continues to erode trust and confidence in our leaders and our bankers on a worldwide basis wherever the two shall meet!

As individuals we have all experienced losses in a very short span, engineered by one party or the other. (ie, banks or governments!)

The following is part of a 3rd party discussion of the titled debate.

Jay Taylor interviewing James Turk:

Taylor: If you think gold and silver are both undervalued, which do you think is more undervalued? Which metal should provide the most protection against inflation?

Turk: Silver is clearly more undervalued. It now takes about 66 ounces of silver to buy one ounce of gold. The historical average is 16. So I expect silver will continue to gain on gold in the long run, but silver comes with a lot more volatility. Consequently, silver may not be for everyone.

Either metal will protect you against inflation, but both metals also have another attribute that is becoming increasingly important. I can’t emphasize this point enough, but when you own physical metal, you do not have counterparty risk. Gold and silver are the only money not dependent on someone’s promise.

The Interview of James Turk was carried out in the October 2008 issue of J Taylor’s Gold, Energy & Tech Stocks newsletter.

J. Taylor

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RUF