this analysis by adrian douglas was published in david morgan's latest report, but it is now available in the clear:

Adrian Douglas, the proprietor of Market Force Analysis and also a director of GATA (the Gold Anti-Trust Action Committee), did a recent interview about the silver market, and he is as bullish as we are, if not more so. Here are some of the highlights of that interview.

The MFA for silver until recently was showing that it was going to outperform gold, which it has. Right now we’re at a point where the Market Force Analysis has to bust through a particular resistance level, and it’s right there at it, and it hasn’t broken through, whereas gold has actually moved off and started to show significant strengths.

▪ Silver is way below its equilibrium price. From my analysis, the equilibrium price right now for silver is almost $16.00. And as the buying interest increases, that equilibrium price moves up. So the real price actually tries to chase it.

▪ So from that point of view, silver is ready to move better and stronger than gold. It’s just having a bit of headwind right now. Once it overcomes that, I think we’ll see silver will outperform gold quite dramatically.

▪ I would say that it will probably start to outperform gold before gold goes for 1000. I think this bit of headwind is only very short term. It may be over by the end of next week. And so I don’t see it being a major lag on silver for very long.

▪ There’s very little left on the planet. The U.S. Geological Society said just a couple years ago that silver would be the first element in the periodic table that would become extinct. It’s incredibly bullish. The USGS said that would happen by 2020. So if we’re in the situation where we can run out of silver, the price clearly has to go up, because you can’t obviously run out of silver. What will happen is, the price will have to go to a price level where it’s economic to recycle it.

▪ We recycle almost all the gold we use in any industrial application, but we throw silver away in our cell phone batteries and solder connections and that sort of thing, in landfills. So the price has to go to a price probably close to the price of gold right now for it to be economic to not throw another gram of silver away in a landfill. We don’t throw any gold away. And so I see silver probably eventually reaching a price that is higher than gold, based on the fact that it’s rarer than gold right now because we’ve consumed it.

http://www.silver-investor.com/davidmorgancommentary/articles/8-07-09_ibtimes69_MarketForce-Silver.html