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Message:: [QUOTE="WingedLiberty, post: 1168234, member: 26030"]Thanks clay. Medora, interesting point.  Could you clarify where you got the $20 inflation adjusted number for silver?  If the "fair value" of gold is $1500 and silver $20, that would put the Gold:Silver ratio at 75 to 1 ?  Isn't that awfully high historically speaking?   I think I read recently that the 200 year average gold silver ratio is 31 to 1.  It's sort of interesting that the gold silver ratio at todays prices is about 31:1, which matches exactly with the 200 year historical average.    I have started to wonder if this recent explosive move in silver was simply silver "catching up" to the big run in gold and silver getting back into alignment with this historical 31:1 ratio.  If true, I think we'll see gold and silver start to move more in tandem (and not so much having silver making 3x and 4x times the move of gold in a given day). Another bullish factor for silver is it's accessibilty (affordability) by common people, as most people can't afford to run out and buy and ounce of gold, but they can afford a few ounces of silver each week.  A final bullish factor is the silver market is much smaller than the gold market, and I think (from what I have heard on CNBC) there are actual physical shortages of silver (but not of gold).  So some of the recent silver run may be due to supply side shortages.   More demand + tight supply = higher prices.  My local coin dealer that does HUGE internet shipping of bullion, has had big problems this year keeping silver in stock.  They have been sold out of all ASE's 3 times already in 2011, but they have plenty of AGE's on hand.[/QUOTE]

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