Thanks to gwr1's submission of Ed Steer's morning comments a few days back, I decided to take a close look at silver based on Ed's comments and a supplied candlestick silver chart. Recently, I've been watching the gold/silver ratio chart at stockcharts.com( http://stockcharts.com/h-sc/ui?s=%24... ).

A significant development on the chart is taking shape with the turning down of the 50 day moving average line. During the past four days the ratio has failed to cross above. Is this the beginning of a new downtrend signalling that silver is to outperform gold, atleast, during the short term? When the Index declines silver is advancing against gold and vice versa.

In the first part of my entry I linked Dr. Thomas Chaize's research works on the historical price ratios of silver to gold along with production and reserves ratios. What is quite apparent based on the provided historical relationships is that silver is either vastly underpriced or that gold is vastly overpriced. Considering that if gold had been ALLOWED to keep up with inflation based on its 1980 high then it should be selling near $2500. This is important evidence to infer that silver is grossly undervalued and possibly due to significantly increase in value in the years ahead. Whether silver advances against gold, or advances with it or a cobination of the two remains to be seen.

The silver price chart, after bettering a declining 50 day average in the second week of December at $10, has been consolidating after hitting a breakout high at the $11.50 level. From last week's action it is apparent that there is some strong buying interest below $11, with $11.25 being the last sale. Aside from any other considerations, the 50 day moving average line has turned up on the metal which is POSITIVE.

Here's hoping that positive market forces start weighing in with more influence in the silver market as opposed to the constant tinkering with it to scare people off. The sophistication over the years that has been employed by the managers of fiat systems in suppressing real money should be an indication of their future capabilities in controlling "much more" as we enter Depression II accompanied with massive injections of newly printed money.

Part of this future control has already started for American, in one respect, as we now have a two-tiered dollar system: one for Americans only, peached colored centers and another one for international use, the old green and black type. Will the internal ones be replaced someday for another kind? Will the green and black ones have a gold cover on them someday as opposed to just a different type of issued fiat currency for American people without a gold cover?

The bottom line, the system continues to come after our wealth and our future earnings and those of our children's. Unfortunately for us, we are not guaranteed a glimpse into their future, we can only muster up an educated guess. For the powers to be, they will always know the future because they are allowed to create it. For example, who benefited from the crash that the bankers created in 1929 or in 1907? Who is, again, getting a lot of the public's money through handouts? Yes, it's the same fraternity of big banking interests and their associated companies.

The time may approach when people are forced by circumstances to meltdown their coins and bars and have them poured into less obvious shapes to protect the integrity of the wealth that they represent.