Silver Is VERY UNDER Priced [in gold]
You can do all the fancy analysis you want, but the fact remains that over the last five years, silver tracked gold but lagged behind. In the last three months it has blown past gold (on a % basis) and it has recently dropped below $40. So is Silver under or over priced.
Let's make a simple argument - assume that gold is fairly valued at $1,500/oz. (If you don't think gold is fairly priced, simply multipy or divide the value from my forumula below to find the price YOU think silver should trade for in dollars.
Since the ancient times it is estimated there is 158,000 tons of gold mined by man, and 1,300,000 tons of silver (SOURCE: gold / silver). There is approx. 8x more silver than gold, which you could argue would put the proper price of silver at 12% of gold, or about $187.
One could also argue that silver has significant value in electronics (more so than gold) and obviously in jewelry (less so than gold). It's value in industry may also prompt one to assume silver should be around $200/oz today (assuming gold is priced correctly).
One SHOCKING stat, most people don't think about, is that based on current world population, there is LESS than 7 oz of silver for every human being on earth (and less than 1 oz of gold).
BUBBLE? I think not!
Now you need to help me. Here's what I can't figure out. Why can I paste this image w/not problems, but the graph doesn't work?
But this image (which you obviously DO NOT see) never appears (it's a graph .gif file). I've tried bmp's, jpg's, and tiffs. Also, how do people get video files embedded?