Another Plausible Silver Prices Scenario
by MarK Yarbro
(Dallas Texas USA)
Please allow me to offer an alternative scenario, which I believe that you will really enjoy!
When projecting future silver & gold prices, everyone tends to look at two primary factors: 1.) historical norms for the silver/gold price ratio, and 2.) the naturally occurring underground ratio of silver to gold {15-1 or 12-1, depending on whom you ask}.
I wish to offer another, more practical perspective.
Before the US stopped minting silver coins, the worldwide supply of above-ground silver was approximately nine (9) billion ounces, thanks primarily to the Comstock Lode.
Since that time, silver has been consumed at a phenomenal rate (as you have covered exhaustively in countless articles) until today roughly one (1) billion ounces remain above ground. In contrast, virtually all gold ever mined still exists (approximately 175 metric tons).
So, let's do the math: 175 metric tons equals 6.1 billion ounces. That means that gold is six times more available than silver, or in other words "SILVER IS SIX TIMES MORE RARE THAN GOLD" when you are talking about physical, hold-it-in-your-hand form - which is really how anything is valued by a marketplace or individual...especially in a crisis.
Everyone knows that, in a financial meltdown of any type, demand will skyrocket for precious metals as a temporary store of wealth. Prices are expected to skyrocket as the flight to safe haven investment vehicles intensifies.
Via: Silver Doctors
Read more about How The Price Of Silver Could Surpass Gold In The Coming Economic Crisis
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