Message:

<p>[QUOTE=&quot;Collector1966, post: 562593, member: 17919&quot;]I don&#039;t know if the gold / silver ratio will continue to grow forever, but there are many factors that will continue to be a drag on the price of silver:</p><p><br /></p><p>1) Constant production as a by-product of copper/lead/zinc mining that is not dependent on the silver price</p><p>2) Decreasing use in photography, its main traditional industrial use</p><p>3) Lack of buying on a large scale (central banks, IMF and other large players like China and India prefer to deal in gold)</p><p>4) Silver/gold price ratio of 70-1 means that approximately 70 ounces of silver would have to be bought to equal the value of 1 ounce of gold, which presents problems with storage and transport of silver</p><p>5) Ready supply of silver scrap hits the market when the price goes up</p><p><br /></p><p>Working in silver&#039;s favor:</p><p>1) Its excellent properties as, for example, nature&#039;s best conductor of electricity and the best thermal conductor among the metals, make it attractive as an industrial metal</p><p>2) It is a tangible asset with a traditional role as a monetary metal and store of wealth</p><p>3) Its low price makes it attractive to investors who cannot afford gold</p><p><br /></p><p>From my vantage point, the negatives currently outweigh the positives, and will continue to do so for the foreseeable future. I can&#039;t see anyone trying to run up the silver market, after seeing what happened to the Hunt Brothers. But with the US and other governments cranking up the presses to create even more unbacked paper money, it will eventually dilute the value of the fiat money currently in circulation and will undoubtedly lead to inflation down the road. If or when the general public becomes aware of inflation, then there will probably be more interest in silver.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in