Silver has come to be used so much by industry over the past 50 to 60 years that most of the inventories in silver have been used up. Now we have more gold above ground than we have silver above ground. Silver is more rare than gold. There are 5 billion oz. of gold above ground and only 1 billiion oz. of known inventories. There were approximately 16 million oz withdrawn and 22 million oz recieved for a net 6 million oz in the NY warehouse for the Comex. This was a manipulation by large traders to push the silver prices down.
We have 62 years of gold production above ground. In silver, we have less than 2 years of mining productiion.
The rarer and more industrially needed item should be $650 and the more plentiful and less used item should be $13.00. This is of course an mind bending historically opposite view of the price action.
The law of economics - Supply vs Demand though will come into play. The governments will always try to disassociate gold from money as they print their currencies into oblivion like the Germans did in the early 1900's.
Silver though has been completly disassociated from the currency game and has become a iindustrial metal with all of the new high tech electrical computers and circuit boards and computer chips.
Silver when it becomes too scarce will see industry bid it up to the $100 range just like they did with uranium and zinc, and copper - increase of 250%, platinum, nickle etc.
The last industrial metal to go is silver and of course gold will lead the way with inflationary issues.
Gold will not have as large a increase as silver though due to the reasons stated above.
So few believe that silver can go up to such high numbers that it creates an opportunity for those who buy silver to become rich. In my opinion, that's without taking big chances. Do you think there would be such an opportunity if everyone knew of it? All you need is a good silver position and to allow enough time for the fundamentals to work and for enough people to learn about silver. So spread the word to help your friends. Is this the bigger fool theory?
No this is the fundamental approach of the law of supply and demand.
To make money you must have real silver or equivalent that does not erode with time due to carrying charges.
SLV nhas a small carrying charge but is the only way to own paper silver long term in your IRA or Pension.
Put 10% of your investments into silver and you will double your money every 2 years for the next 4 years.
This is my opinion.
Good luck.