FREEGOLD REBUTTAL: A Case For Much Higher Silver Prices

These would be impressive figures, if they made any sense.  Unfortunately, the folks at FOFOA do what I call as “Forecast in a vacuum.”  Basically, they arrive at their philosophy and metal price figures without considering certain outside influences.  When I say vacuum, I am referring to the vacuum used in science class when air and outside forces were removed. 

FOFOA is guilty of this in spades when it comes to their understanding of silver.  Why?  Because FOFOA and its hardcore followers look at the world through shiny gold-colored glasses.  Here is one of their excerpts from 2001:

When the coming paper illusion price of gold is destroyed, sending its trading price way up and way down, several times, before shutdown,,,,,,,,,,,,,, the thinner paper markets of lesser metals will be absolutely devastated. Yes we will see $50.00 silver in our time,,,,,, $50.00 for a hundred ounce bar,,,,, that is! No less a relative price decline for the other metals is in store. Even if these actual dollar numbers prove incorrect,,,,,, relative inflation adjusted prices will show the exact same ratios to gold. The gain will truly be in gold!

Again, the folks at FOFOA believe the future value of gold is heading to the moon, while silver gets flushed down the toilet.  Now, I am not going to get into all the details why I disagree with FreeGold’s position on silver, however I am going to challenge a few noteworthy items in their article.