subject: The Case of $100 to $200 Silver [print this page] The Case of $100 to $200 Silver The Case of $100 to $200 Silver
The stock market was at a blotted high in 2008! The Real Estate market was doing so good that the value of homes in the United States went through the roof. The owners of small "cracker Jack box" ranches built in the 1950's began to add on several thousand square feet and they were then termed "Big feet".
Many home owners told themselves that it was now time to enjoy life to the utmost, so they took out a second and third mortgage and bought themselves a 60 foot RV or a 50 foot yacht and other toys too. These purchases were really not in the realm for them. They couldn't afford such under normal circumstances but they lived in the roaring first decade of the 21st Century. Me, I even had a job!
Now in March (madness) of 2011, Gold has crossed the $1432/oz line and the sleeping public is slowly waking to a possible new Gold rush. The world economic situation is in a way comparable to Mt. Saint Helens in May 1980, just before that bubble burst!
Not only is there a new demand for Gold, but the poor man's Gold, SILVER is finding a greater demand. Unlike Gold that is only found in dentures, jewelry and safety deposit boxes, Silver is USED. Silver has as many uses in products you have today as the black gold - OIL does.
The difference between mining Gold and Silver is that Silver was mined close to the earth's surface for thousands of years until the supply area was almost depleted. Gold can still be found in river and creek beds.
When I say that the public is slowly awakening, you only have to open a newspaper or magazine, watch television or listen to the radio. Every article and program is being supported by Gold and Silver buying and selling advertisements. Even now the beloved and addictable Internet propagates these two medals. The alarms are ringing all over the globe.
Today, March 7, 2011, Gold closed at $1432/oz. and Silver closed at $35.93/oz. The flood gates are slowly opening and there may not be an end to the rise of both in sight.
According to the official government inflation adjuster, the Gold price today of $1432/oz equates to $565/oz in 1980. Back then Gold rose toover $900/oz. Where was and where is Silver? Through the centuries, Silver has mostly had a parity to Gold of 16 to 1, that is, it took 16 ounces of Silver to equal the value of1 ounce of gold. Yesterday, the parity was about 41 to 1. Just last October it was 58 to 1.
So, just playing with math a bit, we see Gold at about $2,000/oz, adjusted to inflation. Silver would then sell for $125/oz. Is this possible? With the world situation in turmoil, the dollar falling and bread and butter costing more, you should buy American Silver Eagle dollar coins NOW!
Another small example of the times. On Sunday, February 27, I drove past my gas station and saw the price of regular was $3.64 a gallon. This last Saturday, March 5, I needed gas and the price was now $3.84 a gallon. Today, March 7, I drove past again and the price had jumped to $3.90 a gallon. When will this stop?
