During the big precious metals peak in 1980, there was a point where the gold:silver price ratio was about 15:1
I invite you to make a prediction something like mine:
Gold will rise to a peak of about $4000 in the next five years, and settle to about $2500.
The gold:silver ratio will not drop below 20, nor spend much time below 30.
I have my eye on platinum. When gold equals platinum, it’s time to trade some gold for platinum, because platinum rarely drops that low (it just barely did in late 2008).
Historic, note last 25 years:
http://www.sharelynx.com/charts/AuPL.gif
Recent:
http://stockcharts.com/h-sc/ui?s=$GOLD:$PLAT&p=W&b=5&g=0&id=p27873949797
True, but it was also significantly after I bought my last horse and buggy, and long after my stint as a deckhand on a four masted bark (your estimate of when that ratio was last seen).
Beelzebubba wrote:
True, but that anomalous time is hardly something to hang your hat on.
In 1930, the ratio (then set by law) was $20/ounce gold, $1.38/ounce silver, for a ratio of about 14.5:1. In 1964, the end of the "silver coin" era, it was a ratio of 25:1 ($35/ounce gold, still $1.38/ounce silver).
You're the one who was saying that 1964 was the era of horses and buggies and/or sailing ships. My point was that even since we've been off the gold standard, the ratio has been significantly lower than the 50:1 we see this past month. And more often, when the ratio is tighter, it's when prices are high.
