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<p>[QUOTE=&quot;InfleXion, post: 1774339, member: 29012&quot;]Not quite. I never said silver was a screaming deal when it was $45. It was after the fact when it dropped lower I said that silver is still a screaming deal even at $50.</p><p><br /></p><p>But yes, $45 looks great to me. I&#039;m not a slave to money and I&#039;m not in this for profit. $100/oz looks great to me, and so does $500/oz, since I calculate fair value at minimum $1,500 per oz.</p><p><br /></p><p>Flabbergasted? Allow me to explain.</p><p><br /></p><p>Historically, and inevitably, the price of gold is and will be determined by money supply divided by gold backing that supply. The nature of money evolved out of the intrinsic properites of metals (fungible, divisible, durable, and portable), and that role has been usurped by an inferior model to enable money printing ad infinitum (metal backing prohobits inflation in excess of mining production). We are currently disconnected from reality, but as the saying goes you can ignore reality but you can&#039;t ignore the consequences of reality.</p><p><br /></p><p>Assuming we have all the gold in Ft. Knox based on monetary expasion the price of gold should be around $12,000 per oz. If there is no gold there then the price of gold is infinite in relation to debt-based fiat dollars and thus is a good buy at ANY price since it is commonly understood that debt-based fiat currency cannot indefinitely be conjured to pay off debt with debt, and exponentially growing debt can never be paid off by linearly growing GDP. Therefore it is an eventuality that this unsustainable model will be need to be replaced, and the only question is when.</p><p><br /></p><p>Taking the gold/silver ratio into account. If we use current mining numbers it should be 8:1. That would put fair value silver at between $1,500 and infinity when measured in debt-based fiat dollars.</p><p><br /></p><p>If we use the available supply numbers the gold/silver ratio is roughly 1:10 in favor of silver. That would put fair value silver between $120,000 and infinity.</p><p><br /></p><p>Additionally, according to the Austrian school of economics, which should return to prominence after this Keynesian failure runs its course, only gold and silver can extinguish debt. They must rise to absorb the $2 quadrillion in rehypothecated derivatives in order to avoid a jubilee/global default.</p><p><br /></p><p>The only way around it is to destroy the debt-based money that&#039;s been created over the past decade or so, or at least back prior to when derivatives were conceived, and the financial system needs that for life support so it&#039;s not a viable solution.</p><p><br /></p><p>I believe we will see what the case is over the next decade or so.[/QUOTE]</p><p><br /></p>

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