buy the average UK house with 1,000 ounces of silver

RDB

Adjusted for inflation, if silver were now trading near its all-time highs, it would be somewhere near $250 an ounce, almost 20 times higher than it is today. We know that in 1980 you could buy the average UK house with 1,000 ounces of silver. 1,000 ounces today is about £9,000 plus VAT, while the average UK house is £150,000. Now 1980 was a price spike, but between about 1974 and 1979 silver traded in a consistent range between about $40 and $60 (adjusted for inflation), still about four times where we are today.


http://www.moneyweek.com/investments/precious-metals-and-gems/silver-looks-cheap-but-youll-have-to-be-patient-14703.aspx


Nevertheless, I've taken a 10-year chart of silver and drawn some trend lines on it. As you can see, for all the volatility, we are still in an uptrend. The lines mark some interesting areas of support and resistance. Note the rising straight red line, drawn along the highs silver has made. The next spike silver makes will probably take us to that line. I don't think we'll see that before spring 2010, but by then that line will be north of $25 which will be a very juicy target. But if it gets there, please, for goodness sake sell, or we'll be playing the silver waiting game all over again.

As for silver's next super spike, we may be waiting a long time. Some have been waiting since 1981. But I think we'll get there… sometime in the next decade.

Alan_M_2

Well that's quite remarkable.

I'd now like to know how many of the following items it would have taken to buy a house in the 70's and today....

Bananas
Big Macs
Pints of Milk
5 speed drop handlebar racing bicycles with a seat that looks like a razor blade....

All the above are just as relevant.

Really2

Alan_M wrote: »

Well that's quite remarkable.

I'd now like to know how many of the following items it would have taken to buy a house in the 70's and today....

Bananas
Big Macs
Pints of Milk
5 speed drop handlebar racing bicycles with a seat that looks like a razor blade....

All the above are just as relevant.

Griffters and choppers.

Cleaver

RDB wrote: »

Adjusted for inflation, if silver were now trading near its all-time highs, it would be somewhere near $250 an ounce, almost 20 times higher than it is today. We know that in 1980 you could buy the average UK house with 1,000 ounces of silver. 1,000 ounces today is about £9,000 plus VAT, while the average UK house is £150,000. Now 1980 was a price spike, but between about 1974 and 1979 silver traded in a consistent range between about $40 and $60 (adjusted for inflation), still about four times where we are today.


http://www.moneyweek.com/investments/precious-metals-and-gems/silver-looks-cheap-but-youll-have-to-be-patient-14703.aspx


Nevertheless, I've taken a 10-year chart of silver and drawn some trend lines on it. As you can see, for all the volatility, we are still in an uptrend. The lines mark some interesting areas of support and resistance. Note the rising straight red line, drawn along the highs silver has made. The next spike silver makes will probably take us to that line. I don't think we'll see that before spring 2010, but by then that line will be north of $25 which will be a very juicy target. But if it gets there, please, for goodness sake sell, or we'll be playing the silver waiting game all over again.

As for silver's next super spike, we may be waiting a long time. Some have been waiting since 1981. But I think we'll get there… sometime in the next decade.

If you're going on a date in the near future can I suggest not opening with this story? Maybe a third date kinda tale.

Just some friendly advice.

Thrugelmir

RDB wrote: »

Adjusted for inflation, if silver were now trading near its all-time highs, it would be somewhere near $250 an ounce, almost 20 times higher than it is today. We know that in 1980 you could buy the average UK house with 1,000 ounces of silver. 1,000 ounces today is about £9,000 plus VAT, while the average UK house is £150,000. Now 1980 was a price spike, but between about 1974 and 1979 silver traded in a consistent range between about $40 and $60 (adjusted for inflation), still about four times where we are today.


http://www.moneyweek.com/investments/precious-metals-and-gems/silver-looks-cheap-but-youll-have-to-be-patient-14703.aspx


Nevertheless, I've taken a 10-year chart of silver and drawn some trend lines on it. As you can see, for all the volatility, we are still in an uptrend. The lines mark some interesting areas of support and resistance. Note the rising straight red line, drawn along the highs silver has made. The next spike silver makes will probably take us to that line. I don't think we'll see that before spring 2010, but by then that line will be north of $25 which will be a very juicy target. But if it gets there, please, for goodness sake sell, or we'll be playing the silver waiting game all over again.

As for silver's next super spike, we may be waiting a long time. Some have been waiting since 1981. But I think we'll get there… sometime in the next decade.

You also need to know your history to understand investment trends. Things aren't always what they seem.

The Hunt Brothers and the Silver Bubble
Brian Trumbore
President/Editor, StocksandNews.com

[FONT=Arial,Helvetica,sans-serif]In 1973, the Hunt family of Texas, possibly the richest family in America at the time, decided to buy precious metals as a hedge against inflation. Gold could not be held by private citizens at that time, so the Hunts began to buy silver in enormous quantity.[/FONT]
[FONT=Arial,Helvetica,sans-serif]In 1979 the sons of patriarch H.L. Hunt, Nelson Bunker and William Herbert, together with some wealthy Arabs, formed a silver pool. In a short period of time they had amassed more than 200 million ounces of silver, equivalent to half the world's deliverable supply. [/FONT]
[FONT=Arial,Helvetica,sans-serif]When the Hunt's had begun accumulating silver back in 1973 the price was in the $1.95 / ounce range. Early in '79, the price was about $5. Late '79 / early '80 the price was in the $50's, peaking at $54. [/FONT]
[FONT=Arial,Helvetica,sans-serif]Once the silver market was cornered, outsiders joined the chase but a combination of changed trading rules on the New York Metals Market (COMEX) and the intervention of the Federal Reserve put an end to the game. The price began to slide, culminating in a 50% one-day decline on March 27, 1980 as the price plummeted from $21.62 to $10.80. [/FONT]
[FONT=Arial,Helvetica,sans-serif]The collapse of the silver market meant countless losses for speculators. The Hunt brothers declared bankruptcy. By 1987 their liabilities had grown to nearly $2.5 billion against assets of $1.5 billion. In August of 1988 the Hunts were convicted of conspiring to manipulate the market.[/FONT]

Generali

Alan_M wrote: »

Well that's quite remarkable.

I'd now like to know how many of the following items it would have taken to buy a house in the 70's and today....

Bananas
Big Macs
Pints of Milk
5 speed drop handlebar racing bicycles with a seat that looks like a razor blade....

All the above are just as relevant.

There's no good reason why the relative prices of silver and houses should remain the same.

PS "I were right about that saddle tho'"

Alan_M_2

Generali wrote: »

There's no good reason why the relative prices of silver and houses should remain the same.

PS "I were right about that saddle tho'"

Yup, that's exactly what I had in mind when I was writing that.....