Silver to go up in value based on demand

I just wanted to touch on something really quickly.  A lot of people are worried about investing in silver because the common thought is it is too high at $40 per ounce.  Many people think it has almost peaked.  I think those people are wrong, and here is why...

1. Historically, silver has had around a 16:1 ratio with gold - Right now it is about 46:1 ratio.  With those numbers, silver is undervalued in relation to gold.
2. On average, the world is only mining 6-7 times more silver then gold out of the earth.  On that basis alone, supply/demand market forces will even out the values over time.
3. The main reason silver is going to increase is DEMAND.  Silver and gold have been coined as legal tender since the ancient times.  While silver has always been used in manufacturing, it has never been used like it will be in the future.  Many don't know this, but silver is the "metal of choice" in manufacturing solar panels.  Silver is the best metallic conductor of electricity we have - better then copper.  It is just not as commonly used in wires because of how expensive it is.  

We are living in a perfect time for silver investing.  For one, it can be used as a hedge to the devaluation of the US Dollar.  And for two, with the increased demand in electrical efficiency, silver will be used more and more in electrical manufacturing, increasing its demand on the manufacturing platform.  

We live in a weird time.  Many think it is crazy that silver may close the gap between gold that greatly, but I really think it is going to happen.  Afterall, how many people ever thought gold would be worth more then platinum?  Last week gold eclipsed the value of platinum for a short period of time.  Now they are about even.  A couple years ago gold was about 25-30% the value of platinum.  For all you jewlrey fans, now would probably be the time to buy platinum jewlrey if you want it.....there has never been a time when you can get a platinum ring at the same price as a gold ring.  Just food for thought.

Til next time....