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<p>[QUOTE="AuSgPtHoarder, post: 292806, member: 9817"]Exactly right leadfoot; the rest of the world is not complaining or celebrating 'skyrocketing' prices for oil, corn, gold, silver, etc., because their moneys (??) have been strengthening vs. the dollar.</p><p> </p><p>There are other influences as well, for all the different commodities, currencies, etc., and the rest of the world is being affected to a degree, but the dollar has been steadily and rapidly declining since 2002, but the past few months...I don't remember seeing anything like this. >> </p><p> </p><p>So, I'm writing this after I captured the data below. I wasn't expecting the skew I see there, but it makes sense. Silver and Gold, etc., have definitely outpaced the inverse of the dollar reaction, but we need to remember; most people have more dollars than they have "dollars worth of" PMs. If you have 1/6th as much silver value as you have actual dollars over this time period, you'd be at a break even. If you beat that ratio, then from the investment standpoint of holding dollars vs. holding PM's, you're doing well. </p><p> </p><p>In the past 5 years (approx):</p><p> </p><p>DJIA - up 50%</p><p>US Dollar - down 50%</p><p>Silver - up 300%</p><p>Gold - up 260%</p><p>Platinum - up 250%</p><p>Oil - up 400%</p><p> </p><p>Based on the change in the dollar, you can cut the increases in half. So gold is up 130%, silver 150%. Its almost as if, due to conditions, the "P/E Ratio", if you think of it in stock market terms, of precious metals has gone up, because of their increased attractiveness in these market conditions.[/QUOTE]</p><p><br /></p>
[QUOTE="AuSgPtHoarder, post: 292806, member: 9817"]Exactly right leadfoot; the rest of the world is not complaining or celebrating 'skyrocketing' prices for oil, corn, gold, silver, etc., because their moneys (??) have been strengthening vs. the dollar. There are other influences as well, for all the different commodities, currencies, etc., and the rest of the world is being affected to a degree, but the dollar has been steadily and rapidly declining since 2002, but the past few months...I don't remember seeing anything like this. >> So, I'm writing this after I captured the data below. I wasn't expecting the skew I see there, but it makes sense. Silver and Gold, etc., have definitely outpaced the inverse of the dollar reaction, but we need to remember; most people have more dollars than they have "dollars worth of" PMs. If you have 1/6th as much silver value as you have actual dollars over this time period, you'd be at a break even. If you beat that ratio, then from the investment standpoint of holding dollars vs. holding PM's, you're doing well. In the past 5 years (approx): DJIA - up 50% US Dollar - down 50% Silver - up 300% Gold - up 260% Platinum - up 250% Oil - up 400% Based on the change in the dollar, you can cut the increases in half. So gold is up 130%, silver 150%. Its almost as if, due to conditions, the "P/E Ratio", if you think of it in stock market terms, of precious metals has gone up, because of their increased attractiveness in these market conditions.[/QUOTE]
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Gold $800.00, Silver $16.00 next target?
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