Gold and Silver vs. Base Metals

Here are two charts showing gold and silver prices compared to the average prices of aluminum, copper, lead, nickel, and zinc (as seen as the base metals on Kitco's website).

The red line represents the median ratio from 1900 to 2008. The blue dot represents where we are now.





Let's say fiat dollars are going to zero. Why on earth are you still buying gold and silver then? Surely base metals represent a far better relative long-term value now.

This is not an endorsement to load up on base metals though. I'm not convinced fiat dollars are going to zero in the short-term. I could very well be wrong, but I still lean deflationary.

I called gold the ultimate bubble, which means it may go higher. But it's certainly not safe and it's not going to last forever. - George Soros, September 2010

I am a believer in his theory, especially as it relates to the base metals.

Source Data:
USGS: Historical Mineral Prices
Kitco: Base Metals
Kitco: Precious Metals