Gresham's law is an economic principle that states, "when a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation." It is commonly stated as: "Bad money drives out good" - Gresham's LawThere's a lot of ways to back into an implied value for the current "intrinsic" price of gold and silver in relation to their fiat currency counterparts - and the relative supply, or oversupply - of those fiat paper-contras.
Similarly, if we accept the eventual reality that the U.S. and rest of the western Governments will never be able to repay their debt obligations to their eastern hemisphere financiers, we know that there will be a "grand" currency system "reset," which will involve the massive devaluation of the dollar, euro and yen and the massive re-valuation higher of gold/silver. It's either that or war. Sorry, history has spoken.
At any rate, for those who are brave enough to pull their head out of the sand and think about "what's next," I wrote an article for Seeking Alpha in which I apply recent events as a means of validating Gresham's Law and why gold and silver are undervalued, given that Gresham's Law is in fact a "law."
You can read the entire article here: LINK
In the meantime, I don't think it will be much longer before the market understands that a lot more Fed printing will be required to keep the economy from completely collapsing. This realization should get a boost shortly when both Congress and the President fail to adequately address the sequester/budget/debt ceiling issue. At that point I think more people will understand why Bernanke is pushing the "seat eject" button in January when his current Fed term expires.