China's central bank "could use gold, silver or even a basket of commodities" to diversify away from the dollar, said Money Morning Contributing Editor Peter Krauth, a recognized expert in metals, mining and energy stocks.
"I see it going to 50 at least," Krauth
"With gold at $1,000, that means silver could trade to $20 or even higher, which is another 20% from [the current price]."
Silver closed Friday at $16.06, while gold closed at $991.10 - implying a silver-to-gold ratio of 61.71.
sees China returning to an asset-backed currency and says ownership of silver could help the average citizen, even if its central bank is unable to diversify out of the U.S. dollar fast enough.
"More has to come from mine production, which can only grow so fast," Krauth
Much like a "nervous little lapdog," the price of silver follows gold closely, Krauth