Silver is undervalued versus gold with the gold silver ratio at 60:1 ($1050oz/$17/oz). This is particularly the case on a long term historical basis. The long term historical average gold to silver ratio is 15:1 and this is because it is estimated that geologically there are some 15 parts of silver in the ground for every one part of gold. In 1980 the ratio nearly reached 15 ($850oz/$50oz=17) and the average in the 20th century has been around 40:1.
Many analysts believe that silver's ratio to gold will revert to its mean average, in [of?] recent years, below 40:1. Even if gold only remained at some $1,000/oz this would see silver rise to some $25/oz:-
($1,000oz/40=$25/oz).
__________________________
Me--- I think the ratio will stay high and not get better than 40:1 ....... Though in a panic (1980 for example) or a prolonged chaos maybe the ratio goes to 1:17