History Says Silver Is Cheap

Asheron

With gold currently trading around $1250 per ounce, and silver just above $19, the current ratio of gold’s price to silver’s price appears skewed. One ounce of gold presently buys 65 ounces of silver, so if balance is restored based on the physical ratio of silver to gold in the earth’s crust (16:1), an ounce of silver should be trading near $80.

http://blogs.forbes.com/greatspeculations/2010/09/14/history-says-silver-is-cheap/

Masomnia

Get bored of Gold?

bendix

Asheron wrote: »

With gold currently trading around $1250 per ounce, and silver just above $19, the current ratio of gold’s price to silver’s price appears skewed. One ounce of gold presently buys 65 ounces of silver, so if balance is restored based on the physical ratio of silver to gold in the earth’s crust (16:1), an ounce of silver should be trading near $80.

http://blogs.forbes.com/greatspeculations/2010/09/14/history-says-silver-is-cheap/

Or, alternatively, silver is priced at the right level and gold is in a bubble and its true value should be $320.

You can't have it both ways, Asheron.

mwd

bendix wrote: »

Or, alternatively, silver is priced at the right level and gold is in a bubble and its true value should be $320.

You can't have it both ways, Asheron.

If this was the case then I would expect to be able to buy a nice house for around £40,000 and a new car for £4000.Gold is the basis for all currencies,you cant have It both ways.

RDB

Asheron wrote: »

With gold currently trading around $1250 per ounce, and silver just above $19, the current ratio of gold’s price to silver’s price appears skewed. One ounce of gold presently buys 65 ounces of silver, so if balance is restored based on the physical ratio of silver to gold in the earth’s crust (16:1), an ounce of silver should be trading near $80.

http://blogs.forbes.com/greatspeculations/2010/09/14/history-says-silver-is-cheap/

Ash I wonder how long now we have been saying gold and silver will be going up? I wonder how many have disagreed with us sometimes very childishly (Purch) and I also wonder if any of these will apologise now they have been wrong.

There are plenty of precious metal bulls on here but the PM bears seem to be very envious of all the gains they are missing out on.

I can only say what I have always said, get in now. Gold and silver are going to carry on going up the same as they have since us bulls said they would.

spadoosh

Im gonna go with the gold is overpriced. Its done the same with housing, everyone expected/expects houses to fall in line with wages. they wont and houses will always be an overpriced commodity along with gold.

ninky_2

omg....this is only mildly less tedious than the talk of house prices.

i see some middle class obsession tv spin offs.....

bullion, bullion, bullion

precious metal ladder

and gold designs.

RDB

ninky wrote: »

omg....this is only mildly less tedious than the talk of house prices.

i see some middle class obsession tv spin offs.....

bullion, bullion, bullion

precious metal ladder

and gold designs.

Ha very good.

The interesting thing is, it will be in the main stream press a lot more in the future.

As gold passes $1300 and silver passes its 30 years high of $21 we will see a lot more attention given to these investments.

bendix

Yes, and we know what happens when more attention is given to a particular asset class, don't we?

spadoosh

RDB wrote: »

Ha very good.

The interesting thing is, it will be in the main stream press a lot more in the future.

As gold passes $1300 and silver passes its 30 years high of $21 we will see a lot more attention given to these investments.

Just read in another forumthat they've found over 1000 tonnes of gold in russia, gutted, looks like they might not

74tnemele

spadoosh wrote: »

Just read in another forumthat they've found over 1000 tonnes of gold in russia, gutted, looks like they might not

They claim to have found that lost Russian gold but many believe it about as much as they believe that fort knox has all the gold they say they have.