A nice chart that agrees with many leading experts in the field - Silver's headed a lot higher from todays joke of a price and probably much higher than $150.

Another useful yardstick is the historic Gold:Silver ratio of 16 which yields a target of $312/oz (!) based on $5000 Gold. But that ratio might not be optimistic enough considering it's been way out of whack with historic norms for an extended period of time due to heavy shorting from the Crimex gang. As a result Silver stockpiles have been drawn down to such a degree that until they're returned to a proper balance versus above-ground Gold inventories, the ratio must swing like a pendulum to *fall* below historic levels.

I suggest that if the ratio has been a multiple of the historic norm for long periods of time then by laws of nature, dwindling supply in the face of growing investment demand will force the ratio to compensate by reducing it to a fraction of what it was.

According to my calculator the Gold:Silver ratio is headed from triple the historic norm to one third, or an eye-popping 5:1. Any guesses where ECU will trade when Silver is $1,000 an ounce? Not anywhere close to 89 cents.

Think this isn't possible or I've had an early start on a 6-pack of Labatts Blue? Technically speaking the 100-year Silver chart will complete a perfect cup or bowl formation which is a bullish setup for even higher prices. $150 is only the beginning. It's the perferbial cup handle that invites the market in for a sip of the Silver tea.

ESL

PS. Belated Happy Birthday Mr Soul!!!