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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (811)	3/1/1998 8:08:00 AM
From: David R. Schaller	Read Replies (2) \| Respond to of 8010

philv, If you go back far enough in US history (1850's) I think you'll find gold in the form of $20 double eagle's and silver dollars circulating together (ratio 20:1) Later when gold sales were restricted and prices controlled ..the official government price was (I think) $32/oz .... & silver dollars still circulated (ratio 32:1). The rationale at the time was that this was the approximate ratio at which the two metals were found in nature. The entire balance between supply & demand can easily be thrown out of whack however by the various needs for one metal or the other in industry, coinage or as a reserve asset. Advanced techniques in exploration and mining may also make finding one metal easier than the other or less expensive to recover and therefore more abundant and less costly. Although ratios are interesting, we're still left with the unanswered question..is silver too high or gold too low? As long as central banks leave the impression that they may at any time disgourge themselves of 32,000 tons of gold...how can gold move appreciably higher? I'm betting on silver going higher and gold staying roughly at $300. When silver hits $10/oz we'll be back where the ratios were 100 years ago 30:1. Regards, Dave