gold and silver

Robert · Senior Member

What do you guys think of the price of gold and silver? Both have been dormant for years and then suddenly (last year or so?) they both shot up. Gold was around $720 an ounce but has settled down to around $650. Silver hit $15 an ounce and now it's around $12.50.

Will they go up, stay where they are, or go down?

And for all you folks like me who remember the 1980 gold boom, why is the cost ratio of gold to silver different? Back in '80 gold hit $800 an ounce and silver was $50. That's a 16:1 ratio. Today's ratio is over 50:1. Why is it different?

eagames · Expert Member

It does whatever I don't expect. Crying or Very sad

I think the reason for the 16:1 ratio in 80 was two guys (Hunt brothers) cornered the silver market and drove the price up then the feds dumped reserves of silver and drove it down. If you ignore the time they artificialy pushed silver up it stayed closer to the 50:1 ratio.

In the days the US used gold and silver coinage the ratio was ROUGHLY a 1 ounce 90% silver dollar to a one ounce 90% gold $20 double eagle or 20:1 so over the period until today the ratio has moved from 20:1 to 50:1. In between the ratio has been higher, at silvers lows the ratio neared 100:1. If both were truly used as currency they would be locked at some ratio.

Lately many metals like silver, copper and zinc are going up.

gription · Advanced Member

there are a million different factors here, and it takes a lot of comprehension on a lot of important levels to play the game well.....

i wish i knew what'll happen tomorrow on any given day,,,

this $11.95/$635.50 stuff is a drag................ i need 14/700 again in order to really smile Crying or Very sad