fizzy,
re: "Poor people can still buy silver but 2 gold coins already are approaching the total net worth of probably a majority of Americans..."
Based on that reasoning, silver shouldn't go up either - but GRAVEL should. You can get a lot of gravel for a dollar.
I'm only saying that somewhat tongue-in-cheek. I don't believe silver to be scarce. It just wasn't worth mining for when it was $3/oz. It wasn't worth the trouble.
At $100/oz or so, the world can pull all the silver it could ever want out of the ground. The silver deficit that currently exists WILL fill, setting a relatively low cap on silver's potential price.
Gold? No such luck. While the supply grows about 2 percent per year - and never seems able to do better than that regardless of gold's various prices, both lofty and low, over the years - the demand for gold is increasing exponentially. If, as I think they will, pension funds decide to get in on gold's bull run, the price will skyrocket. And if there is ever again a decision to back money with gold (I doubt that will happen in the U.S., but I think it's probable in some countries) the price will be off the charts.
I could see some countries backing their currencies with silver too, btw. I just don't think silver has the "ENORMOUSLY larger potential market" that you think it does.
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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