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Look What's Outperforming Gold and Silver

NEW YORK ( TheStreet) -- It's been a remarkable experience to see how gold and silver have moved in just a few weeks.

Friday, gold catapulted almost $35 an ounce to $1,743, a 2.04% one-day move.

Silver, which has been outperforming gold in a big way, did it again on the same day, climbing 3.06% to $33.67, a 27% advance from its summer of 2012 lows of around $26.25 in mid July.

Check out this chart of the two most popular exchange-traded funds that mirror the price-movement of gold and silver. For gold it's the SPDR Gold Shares (GLD) and for silver it's the iShares Silver Trust (SLV). Take special notice of the past 12 months up to Friday.

GLD Chart GLD data by YCharts

Don't be fooled by the flatter-looking price line for SLV. That only reflects the fact that silver trades below $50 an ounce while gold has been trading at or below $1,911 an ounce. On a percentage basis silver has outperformed and should continue to outperform its more expensively priced "big sister."

The carefully timed and globally orchestrated Massive Bond-Buying Bailout that the "Central Banks Symphony" has been playing from the shores of the Federal Reserve Bank to the Gibraltar of the European Central Bank has opened the floodgates of monetary expansion and paper currency debasement. This has been the most prevalent excuse for why gold and silver have boomed of late.

Even the "Bond King," Pimco's Bill Gross, said in a Sept. 5 interview with Bloomberg that he now believes gold, and to a similar extent silver, is a better investment opportunity at this time than stocks or bonds. It's worth your time and attention to watch the interview.

So you'd think that gold and silver stocks would be in the stratosphere and the industrial metals -- or what I like to call "less-precious metals" -- stocks would be languishing. Yet, Friday's stock session told a different story that has many investors scratching their heads.

Take a look at the companies that are my favorite proxies for gold and silver. Franco-Nevada (FNV - Get Report) and Silver Wheaton (SLW - Get Report) both operate as gold and silver streaming companies (like middlemen) who contract with gold and silver producers to buy their production at wholesale prices and then turn around and sell them at spot prices.
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FCX $13.77 8.80%
FNV $69.12 0.74%
PAAS $15.44 3.20%
SLW $20.77 4.50%
VALE $5.82 3.50%


Chart of I:DJI
DOW 17,701.60 -129.16 -0.72%
S&P 500 2,059.78 -16.03 -0.77%
NASDAQ 4,765.0410 -40.25 -0.84%

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