Chapter nineteen. Gold vs. silver.

As of this moment gold is listed as being worth $1,314.40 an ounce. Silver comes in at $19.98. That means if you could sell one ounce of gold and buy silver with the proceeds you could buy 65 ounces of silver with that one ounce of gold. (65X20=1300)

Historically this ratio has been 15 to 1. If it were to return to that normal silver would go up to $87.00 an ounce. Conversely, if silver remained at $20.00, gold would go down to $300.00 an ounce.

34 year history for silver prices.
Keeping these amounts in mind, which do you believe is more probable - if any? Personally, I believe that gold will never go that low again. If it ever goes below a thousand-dollars the market would explode. Or is it implode? Anyhow, it aint' gonna' happen, as they say. Both silver and gold are undervalued today. Silver has reached nearly $50.00 in the past.  Twice actually (see chart above).

Extrapolating from the chart it would appear that around the year 2040 silver will break out again and go to $50.00. That would be IF you figured that this ONE EXAMPLE of the silver pricing was repeated over and over. I don't believe that to be the case at all.

First of all, this is but one period of time. Secondly, the dollar crashing will throw out all previous charts and calculations. Look closely at the chart again. Notice that the silver price skyrocketed from about ten-dollars an ounce to about fifty in 1980 then again from about eighteen to about fifty in 2011. These two incredible jumps in price weren't over a long period of time. Both happened in a matter of just a few days - weeks at most.

Look at this chart and imagine if you had millions of dollars to invest. What part of the chart do you wish to go to invest? About 1993 looks good to me. But - and a BIG BUT! We can't turn back the hands of time! We have only today to decide. So the best time to invest is - TODAY!

At least I think so!

For a much more in-depth explanation, by far smarter people, go online here: