in this article, john christian explains how silver leasing works, and why the price of silver will go much higher:

Inflationary concerns are real for the US Dollar. The Federal Reserve is committed to this "quantative easing" policy which Obama has already committed to allowing with his "stimulus" (read: printing) plans. This factor alone is causing precious metals to increase in paper money terms.

Mining is declining due to the recent bashing Silver has taken over the past 6 months. Most Silver is mined as a secondary metal (70% of production). As base metals decline (and they will further in my opinion - however that is not the scope of this article) Silver will continue to be less attractive. It is only after the price explosion coming where Silver will once again become VERY attractive to mine... but the deficit and immediate demand won't stop the price going sky high in the interim.

With SO MANY factors at play, its impossible to put a price target for Silver. Anyone who does put a price target on Silver is doing so more for readability than truly understanding just how many factors are at play here.

I do believe however that Silver will be worth more than Gold.

John Christian.
January 1st. 2009.

http://www.metalsleasing.com/metals_...