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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Secret_Agent_Man who wrote (23928)11/13/2001 9:06:39 AM
From: Terry Whitman  Respond to of 52237
 
That's an interesting article on the availability of physical silver. It appears that it is way undervalued on paper at the present.

I recently learned that silver is actually only 10X more common than gold in the earth's crust. 50 ppb (parts per billion) vs. 5ppb for gold. In a pure rarity based analysis, silver should be worth about 10% of gold. Historically, gold has been valued higher- due to its properties, popularity or whatever.

Checking back on the gold to silver ratio over the past 200 years, I found that the ratio has fluctuated, but gradually risen over time. It was 16X in 1840, 31X in 1920, and has skyed to 67X at present. Most of that gain to 67 has come in the past 2 decades. Perhaps we are witnessing a 'parabolic ending' to this phenomenon.

Anyhow, I suspect that silver will be the 'Buy of the Century' when it finally bottoms.

Regards,
TW