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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (15432)	3/16/2007 12:03:55 AM
From: paul61	Respond to of 217931

thanks...PAUL...EOM

To: TobagoJack who wrote (15432)	3/16/2007 5:36:09 PM
From: 8bits	Respond to of 217931

nominal peak silver price was 55 for a few minutes, say, and adjusted by supposed inflation rate brings it to 130, 9.3 x current spot, plus or minus True, but shouldn't we take in the Hunt brothers attempt to corner the market..? When the US had a bimetallic standard, the ratio of silver to gold was 20:1 then after gold was outlawed for private ownership it was 35:1. Those ratios held for much longer than the Hunt brothers spike. With those figures in mind we have a range that indicates that silver is undervalued relative to gold. Depending upon which time frame we would choose for comparison we would have to multiply silver's price by 1.45 to 2.5 to achieve historical parity with gold when they were both considered money.

To: TobagoJack who wrote (15432)	3/16/2007 6:04:07 PM
From: 8bits	Read Replies (2) \| Respond to of 217931

Ooops correction, I made a big error assuming silver was selling for $1 an ounce for much of the time the Gold price was fixed to the US dollar. Silver sold for less than $1 an ounce from 1920 to 1960 (From a low of $ 0.254 an ounce in 1932 to a high of 0.914 an ounce in 1960). So the ratios should be a bit greater. I did find this info on for yearly averages of gold and silver during the 1970s run up: Silv - Gld - Year - G/S Ratio 16.39 - 612 - 1980 - 37.33 21.79 - 306 - 1979 - 14.04 5.93 - 193 - 1978 - 32.54 4.706 - 147 - 1977 - 31.23 4.347 - 124 - 1976 - 28.52 4.085 - 161 - 1975 - 39.41 4.391 - 159 - 1974 - 36.21 3.137 - 97 - 1973 - 30.92 1.976 - 58 - 1972 - 29.35 It would seem, that even during a strong bull market for precious metals that the gold/silver ratio does drop much below 30 and frequently resides above it. The 1979 ratio of 14 was based upon the full court press by the Hunt brothers trying to corner the silver market.