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<p>[QUOTE=&quot;SilverSurfer, post: 814735, member: 21603&quot;]I think silver is having a hard time moving for a few reasons.&nbsp; One is that a lot of people got into silver around $18 before the markets crashed in 2008.&nbsp; The smart ones didn&#039;t bail immediately, but waited until silver reaches $18 again, and then they sell, because they want to get out even.&nbsp; They feel that silver has been a poor investment and probably still feel that way.&nbsp; The way gold reacted to the crash vs silver might make these people invest in gold and say &quot;forget you silver.&quot;&nbsp; </p><p><br /></p><p>The ratio of the gold to silver price has more to do with what it costs to put the final product out on the market on current demands.&nbsp; What a AGE cost to produce mine to finished product to an ASE.&nbsp; Gold is already becoming pretty scare, so costs to produce go up.&nbsp; Silver is mined as a secondary to other metals such as copper, zinc, lead, etc.&nbsp; Mostly the silver produced from these mining operations comes as a bonus and isn&#039;t figured into the costs.</p><p><br /></p><p>Lastly, if the ratio does correct, who is to say that silver has to increase?&nbsp; Has anyone considered that gold might go down and silver stay stagnant?&nbsp; This would also close up the ratio.</p><p><br /></p><p>Silver also has industrial applications.&nbsp; When the economy is doing well, and the need for silver is increased, the price goes up.&nbsp; When the economy is bad and nobody is buying devices that require silver the price goes down.&nbsp; If you noticed, at the end of 2009 the ratio was improving.&nbsp; Now, the ratio has gotten worse, this has implication on how the economy is doing.</p><p><br /></p><p>The worst thing you can hear about is how historically gold is 16 to 20 times the price of silver. Like, how far back in history do we have to go? There was a commercial that went, &quot;electricity today is cheaper than 20 years ago....a little birdie told me so.&quot; Let&#039;s face it, well never hear that jingle again.[/QUOTE]</p><p><br /></p>

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