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RE: Yet another mysterious flash crash. Silver should be worth $800 troy ounce
Don't compare silver value with dollar value. This does not make much sense, as you compare commodity with fiat currency. Compare silver & gold value which historically was 1:11 (early medieval ages) peaked at something like 100 and for last ten years moved between 30 and 90 (oscillating around 60). Even at its lowest your silver would be worth 1/11 of gold = $111 an ounce and and it's highest would be worth $12 an ounce. All those values are very far from your $800 ;-)
Yes, I understand that the Silver to Dollar ratio at $800 per oz is from the perspective that silver is an active monetary metal used as currency. But! You're doing a miscalculation..you're assuming that the price of gold is correct. My stand is that neither silver nor gold is priced right (and the confirmed manipulation of the prices I think is proof of that) so even if Silver won't be 800 because it's not going to be a currency, it still has to stretch for 1:11 at some point, and if Silver is manipulated, one can make the assumption that gold is too. So even in a conservative scenario, we could be looking at silver prices going up to between 100-200$ Which is not at all crazy. :)
Ratio 1:11 lasted until large deposits of silver were discovered in South America and Mexico. Since then supply of silver is much higher so the chances of gold silver ration returning to this level are almost non-existent.