**[investwise]** Gold Has Shot Over $1200/oz. The Euro, Rupee collapse will give Silver a spike

 

As Currencies Collapse Precious Metals Will Shine In case you haven't guessed, I'm talking of silver. In a good year for gold, especially with the cycle we've just locked into right now, silver can give you even greater gains... driven by the same precise megatrends. How high could this really go? The key to this is that when gold jumps, silver almost always follows. Because both respond to many of the same trends. There's even what's called the gold-to-silver ratio built into the price. Over the long term, gold has sold for about 30 times the price of silver. But right now the ratio is way out of whack... gold sells for about 61 times the price of silver. Just on that basis alone, to rise to the historical mean silver would have to climb 104%! But if gold soars to the levels I'm predicting... and silver returns to its average historical relationship with the gold price... now we're talking a breathtaking gain of at least 263%. That's more than three times every dollar invested. Could it happen? Absolutely. Because many other forces drive the price of silver, specifically, even beyond those driving megatrends the white metal shares with gold. Just take a look... The supply-and-demand dynamic for silver looks even better right now than for any other metal, including gold and platinum, because more and more industries want silver, but fewer mines are producing it  Maybe you've heard, however, that the huge rise in digital photography spells doom for silver demand. Not so. In fact, only 8% of world silver demand ever came from the photography market  What many amateur investors don't realize is that silver is one of the best electrical conductors in the world. But it doesn't corrode like other metals. Virtually all modern electrical switches, from batteries to computer circuit boards, use silver-based solder  That means you need silver to make digital cameras. And iPods. And laptop computers. Not to mention dishwashers, microwaves, televisions, washing machines, refrigerators and more  The electronics industry alone uses up 44% of all the silver produced each year  You need silver to make solder for most metal pipes, because it's also temperature resistant. And smooth. Which has also hiked up silver demand because it's an excellent lubricant for jet engines  Silver has anti-bacterial properties too. The water you drink or use to fill your pool was filtered using silver. Silver is used to help process almost all pre-packaged food, too  The $300 billion plastics industry couldn't exist without silver. It's the perfect chemical catalyst. You use it to make everything from adhesives and heat-resistant surfaces to toys, car parts and more  Even the U.S. Mint churned through 28.8 million ounces of silver in 2009, to make coins and medals. We haven't even touched on jewelry demand, which sucks up another 30% of the total annual silver production. We're not alone on this. Not at all. George Soros and Bill Gates also own huge positions in silver. Why Silver? For one thing, there are only 22 pure silver mines around the world. For 15 years straight, they've fallen short of meeting total silver demand. In the last two years alone, they were off by nearly 76 million ounces. So why have silver prices stayed so low, relative to gold's amazing rebound? Well, silver, like gold, is a metal governments like to keep in reserve. That matters because over the last few years, governments have dumped millions of ounces of silver on the market to raise cash... which has, until recently, kept down silver prices. Today, most of the U.S. silver stockpile is gone. And other governments are running low, too. And here's something else: Unlike gold, when silver goes into industry, it gets used up. Burned away. And that's happening now at a rapid pace. The world once had about 2.2 billion ounces of silver above ground. Now it has only about 300 million ounces. In other words, total world silver supply has plummeted by over 86% just in the last few years... while silver demand has gone UP! When the Gold-to-Silver Ratio Slides Into Balance, You Get Rich You can look at it this way, too.The world has about five times more gold than silver. What if silver cost one-fifth the price of gold? It would skyrocket over 1,126%! Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.   Nothing in this article is, or should be construed as, investment advice.

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