Price Of Silver (Way to go !!)

(Graph extracted from goldprice.org)

As i'm writing this post, the price of silver is currently standing at approximately $28.66USD. So what's so special? Because the above graph shows that Silver was once at a all time high of $50USD around the 1980. Meaning to say, the current silver price is way, way, way, way too low !!!!!

Price of Silver per ounce

Start of 2009- $11.20USD

End of 2009- $16.89USD (+51% or $5.70USD)

Start of 2010- $16.89USD

End of 2010- $31.11USD (+83% or $14.00USD)

So ideally...

Start of 2011- $31.11USD

End of 2011- $66.88USD?? (+115% or $35.77USD)??

I've also realised that the ratio between the two precious metal, namely Gold (XAU) and Silver (XAG) is starting to close up.

By end of 2009, the ratio was about 63:1

By end of 2010, the ratio was about 46:1 (-17)

So assuming the ratio gap keep closing up but not as much as 17units. Let's take it at half which is 8.5units. So....

By end of 2011, the ratio should be 38:1 (-8.5)

There are lesser physical silver on surface than physical gold for the investor to buy and furthermore, silver is more commonly used. With silver being more practical in any and everyway, the XAU and XAG ratio will definitely close up.

I believe this year, will be the year where the Silver will soar all the way to the sky and create a new all time high. So my prediction for the price of XAG by end of 2011 will be $65USD per ounce.

This cycle only benefit those that invest in precious metal. So what are you waiting for??