Historically (over more than one hundred years) silver has a relationship to gold of approximately 16 to 1. At that ratio with the current price of gold, silver should be priced at above $90 per ounce. The reason for the recent drop in silver prices was a change in the margin requirements for silver purchases.
While gold has come off less than $100 per ounce from it's recent record high the price decline in silver has been much more extreme, percentage wise, than gold. The US Mint released statistics that indicate that while gold bullion has declined that they have produced over 84,000 ounces of gold coins since May 1st of this year. That indicates to analysts that gold has more room to the upside with prices of $1750 per ounce in the intermediate term. That would make silver worth above $100 per ounce when one considers the historical price relationship.
I own both silver and gold and consider it a prudent store for a sizable portion of my estate considering that inflation of the US dollar is predictable and probable. That will mean that assets held in dollar denoted instruments will decline in value to the extent that the US attempts to inflate as a means of paying its indebtedness.
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