Can't make heads or tails of silver

Apparently there seems to be a campaign on the way to crash J.P. Morgan via the purchase of silver as they supposedly hold a short position of 3.3 billion ounces of silver and are currently under investigation of silver price manipulation. In the last few months, silver has been trending upwards for the last 3 months with a 47% gain. Gold hasn't seen that much of a price increase.

Silver ETF price for the last 3 month

When it comes to financial information on the internet, there is a lot of garbage out there, especially for a hot topic like gold and silver. The leading argument to buy silver comes from a guy by the name of Max Keiser, in general, I don't trust financial pundits and whatever they start talking about, I generally tend to ignore but make a note to look into on my own.

The burning question that needs to be answered is, "is silver relatively cheap or expensive right now?" I've added to snap shots for the last 10 years on gold and silver prices from kitko.com.

Price of Gold

Price of Silver

Metal prices have gone up significantly over the last 10 years, but I'll skip the commentary on that:

Gold in 2000: $300 (approx), Silver in 2000: $5 (approx) Ratio: 60:1
Gold in 2010: $1414, Silver in 2010: 29.58 (Dec 6 prices) Ratio: 47.8 :1

Historically, it seems that the price of silver has been much lower compared to gold in recent times and I find it hard to believe that this ratio should suddenly change. I've also been looking at the relative production rates and total produced numbers of silver and gold and get wildly different ratios compared to the prices (of course the numbers themselves might not be reliable too).

From gold-eagle.com: I calculate that by 323,476 Tons (by 1999) have been extracted. I guestimate that about 450,000 tons have been mined by 2010.
From wikipedia: They mention that 165,000 Tons have been mined by 2009.

Meaning that there is a 1 : 2.77 availability ratio of gold to silver. I've also looked at the production ratios and the numbers work out to be 1 : 4.8 for gold and silver. I think that stockpile availability might be the key factor and the difference between supply and demand might be causing the price differentials between gold and silver, but I still can't figure out the reason why gold is that much more expensive than silver, presently and historically, unless the numbers I've been looking at are bad (which is a possibility). Personally, for the bigger price differential between gold and silver to be supported, there ought to be a greater differential in availability between the 2 metals.

The other forward looking argument to be made is, suppose that people are buying silver to crash J.P. Morgan and that it does happen. And then what? I would say that eventually everyone would have to sell their stocks of silver to get their money back out of it thus dropping down the price of silver. The question is, when do you start selling? If you can't figure that out then you shouldn't be buying in the first place.

It'll be interesting to see what happens, but I have a feeling that there is a bubble in silver happening right now.

Addendum:

I'll add supply data from kitco.com here since I think the data from here seems a little more reliable and up to date.

Gold supply (2009): 117 Million Ounces, Silver Supply: 810 million Ounces Ratio: 6.9
The ratio is still fairly small compared to price ratio between gold and silver. What is the pricing mechanism for gold and silver? I still don't know.