Silver is over $31 this morning.

Life is good

 

Life is VERY good. I bought 4 months ago at $20.50
My $1225 gold ain't doing too bad at $1420, either

 

I sense a bubble.

 

Yep several indications of more than one bubble.

 

Cool... I've got quite a bit of it in the form of old silver dollars.

 

The bubble theory is foolish. There is about 8 times as much silver above ground as gold. Gold is a much less used industrial commodity, but yet the gold to silver price ratio is roughly 47:1. I see that ratio at about 30:1 by mid year. Seeing that gold is pretty damned stable in relationship to inflation, I see silver at 45-50 dollars/oz by the end of June. If the US economy continues to tank and gold reaches, say $1,800, silver could be $60/oz.

 

I think you got those short time frames wrong, but your reasoning is right.

 

There are about 1 billion ounces of silver above ground and 5.3 billion ounces of gold.

 

I think the markets are overly concerned with inflation and that's why I think this is a bubble.

When/if the economy starts to recover the price of oil is going to dampen that effect, thus inflation will be likewise dampened.

In the long run I'm bullish on metals but I think the price is more based on emotiuonalism than rationalism, right now.

 

I've seen that claim also, but more often read 8 to 9:1 Ag to Au.