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$1337 divided by 16 equals $83.56.

$83.56.

That's the price that silver should be worth (per ounce) based on the traditional ratio of 16 to 1 in relation to the price of gold.

So by this measure either gold should come down to $416.00/oz or silver should rise to $83.56 per oz.

But even if we split the difference and say gold falls to $672.00 then silver would still be at $42.00/oz making its present price of about $25.50 still a great deal.

Unless of course the 61 to 1 ratio is not an accurate number anymore.

But I'll take my chances with being on the side of history - at least in the long term.



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Investment of the Decade

Eric Sprott says silver will be the investment of the decade:

Eric Sprott interview on Kitco

 
Freedom, Prosperity and Peace

Current ratio is 49:1

And dropping like a stone... Buy silver while you can. Looks like physical is getting harder to find again!

Love or fear? Choose again with every breath.

$400

James Turk says gold will reach $8000 per troy oz. by 2015 and the gold/silver ratio will fall to 20 giving a silver price of $400 per troy oz.

 
Freedom, Prosperity and Peace

That's my theory too

Either way, silver wins

Looks like it's making its move on the way up to $83.56 per oz.

Or at least half that.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul