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<p>[QUOTE=&quot;WingedLiberty, post: 1029926, member: 26030&quot;]I thought this was very interesting</p><p><br /></p><p>This chart is the gold to silver ratio (gold/silver) from 1792 to 2005</p><p><br /></p><p>[ATTACH]100798.vB[/ATTACH]</p><p><br /></p><p>I am not sure of all the dynamics at play here,</p><p>but look how long a period of time the gold / silver ratio was 16:1 ...</p><p>nearly 80 years from 1792 to 1872 ... </p><p>and touched 16:1 again in 1920, 1968, and 1980.</p><p><br /></p><p>Also look how the peak ratios of over 90:1 look a bit like transient bubbles (two peaks almost like a double top)</p><p><br /></p><p>If we ever returned to a 16:1 ratio (which I am not saying we ever will)</p><p>and gold held at todays prices of $1,394 ... </p><p>that would put the &quot;fair value&quot; of silver at $87 an ounce <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie9" alt=":eek:" unselectable="on" unselectable="on" /></p><p><br /></p><p>If we just fell back to a more median 35:1 ratio </p><p>(which i think is what we had in the 1920&#039;s when we were still making legal tender gold and silver coins)</p><p>and gold held at todays prices of $1,394 ... </p><p>that would put the &quot;fair value&quot; of silver at $40 an ounce</p><p><br /></p><p>Interesting food for thought[/QUOTE]</p><p><br /></p>

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