The Daily Dig

Wednesday 22nd March, 2006 AD

"THE SILVER / GOLD RATIO"

"A lot of the kids driving cars around our streets weren't even born the last time silver was

trading at these prices," commented one of the guys in the office today. A good point, but even

more interesting to me is the fact that most modern cars on our streets wouldn't even function

without this indispensable metal.

Today, silver sits at its highest level since 1983.

Exactly two months ago, gold was trading at $557 per oz, while silver was at $8.90. Silver was

1/62nd as valuable as gold (or; it would take 62 oz of silver to buy 1 oz of gold). Now, JUST 60

days later, gold is trading at $552 per oz (around the same), while silver is at $10.57 per oz.

Today silver is 1/52nd as valuable as gold (or; it will now take only 52 oz of silver to buy 1 oz of

gold). In the last 60 days, silver has become more valuable to gold by a factor of 19%

What has changed and why?

Yesterday Reuters reported; "silver shoots to a 22-year high on speculative buying on Tuesday

after the U.S. Securities and Exchange Commission approved rule changes for a silver

exchange-traded fund (ETF)." Is it speculation around the launch of a silver ETF that has given

silver its recent boost?

"For most of the history of the world" comments Franklin Sanders, "silver has traded at a ratio of

10/1 to 15/1." According to Sanders, by historical standards, silver is still a long-way

undervalued.

"You cant put all your eggs in the silver basket" comments another veteran precious metals

analyst, "gold provides us with longer term purchasing power stability."

What is the gold/silver ratio telling us?

To address and debate these and other questions, AFE has specially convened a 'precious metals

teleconference' forum : THE WORLD OF PRECIOUS METALS 2006, with a panel of experts and

special guests, including outspoken gold and silver market analysts, geo-political commentators

and mining company executives.

~ What has caused the recent spike in gold and silver?

~ How is geo-politics and Middle East tension effecting the metals?

~ What has been the long-term impact globally of organizations like GATA

~ How are various financial and terrorism acts being passed into law going to affect future gold

ownership?

~ Why the importance of Allocated Accounts?

~ What are the pros and cons of EFT's?

~ What makes good and bad mining companies?

A specially convened a precious metals Teleconference ~ THE WORLD OF PRECIOUS METALS

Sincerely - Philip Judge pjudge@anglofareast.com