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<p>[QUOTE=&quot;InfleXion, post: 1100131, member: 29012&quot;]Trying not to beat myself up over digging this one up, but this is something I have pondered at length. I first read a number of years ago that the historical gold/silver ratio was approximately 15/1, give or take 5. I have since seen that reiterated a number times, with more frequency in recent days. This made silver a very attractive investment for me since it stands to reason that should the market ever be truly free again that is where the ratio will gravitate to. </p><p><br /></p><p>Of course if they both go down in value all that doesn&#039;t matter much, but I think they are both good investments even at current prices. For one, I don&#039;t see how prices cannot rise if the amount of money is also rising, barring very effective market manipulation. So Quantitative Easing seems to almost ensure a steady rise. Supply and demand also looks promising for silver. I recently read that China used to export about 100 million tons, and now are importing about that much, which is a 200 million ton swing in an 800 million ton per year industry. Everybody is wanting to get in on metals as the economic situation is still finding its footing, and as silver is a better conductor of electricity than gold its industrial demand is increasing as well as individual demand, in an industry that has been relatively static in production.&nbsp; </p><p><br /></p><p>In summary, I expect silver to break $50/oz in 2011 if not early 2012 unless both QE3 and any major catastrophes are averted. If we do get the best case scenario, we&#039;re still committed to QE2 through June so $40 wouldn&#039;t seem out of the question. In regards to hyperinflation, the person I&#039;ve seen mention this as a concern was Peter Schiff, and he was one of the few people to forsee the current economic situation. While I tend to think it will take a few more years of currency debasement for that to happen, it is the sort of thing that can catch you by surprise as is the nature of things approaching infinity. If we begin down that slippery slope then the sky is the limit.[/QUOTE]</p><p><br /></p>

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