If the situation in Libya resolves itself, however, then commodities could see more of a selloff. On Monday it was rumored that Lidyan leader Gadhafi would cede power if his family was allowed to leave the country safely. That said, the scenario of a steeper correction is not in the forefront of traders' minds. David Morgan, founder of Silver-Investor.com, is long on silver using silver stocks. "The equities are lagging the metals and if this rally is going to continue the equities will play catch up pretty quickly," he said. Morgan would use the same strategy with gold stocks versus the underlying commodity. "Value wise, silver is still the better play." Currently, the silver to gold ratio (how many ounces of silver it takes to buy an ounce of gold) is roughly 40:1 and Morgan thinks the ratio could sink as low as 16, which, at current gold prices could put silver at $90.
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