by Chris Waltzek
Chris welcomes James Turk of GoldMoney.com – he’s watching the gold / silver ratio closely; the current reading near 80:1 may represent a significant relative value for silver, especially given the naturally occurring, geological 10:1 ratio. Were silver to merely return to the traditional level, the price would leap to three digits, even if the price of gold remained static. Nevertheless, just five years ago, the gold / silver ratio approached 30:1 – a similar figure would put the silver price 2.5X’s higher, approximately $35 per ounce. Due in large part to negative lending by global central banks, the cost of storing gold is negligible, relative to the cost of negative savings rates. Put simply, investors are understandably more concerned by the return of their funds than by the return on their funds (Will Rogers). Once the CRB commodities index reverses course, resuming the uptrend – James Turk’s inflation forecast suggests that millions of PMs investors will benefit from the outcome.