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Gold is at $800: Why Isn't Silver at $40?

Expert geologists have calculated that there is 17.5 times more silver in the earth's crust than gold. Therefore, with all other things being equal, gold should be 17.5 times the price of silver.

However, most gold that has come out of the ground is still in physical form like bullion, but most of the silver that has been mined has been used up in industrial production and is very expensive or even impossible to recover again. The current ratio of available silver to available gold is less than 10, so with gold at US$820, silver should be at least US$82.

Also, the price of silver is being artificially held down by the massive short selling postions on the Comex by the 4 largest commercial traders. A simple read thru the Commitment of Traders (COT) report will show short position of over 6 months new mined supply - a much larger position than any other commodity.

There are other factors that will drive the price up and silver should be at least US$100....