Gold might go up as high as $2,500 said by respected economists, academics, analysts and market commentators. In fact, the majority said that it will go up to $5000 or more - even as high as $15,000 – is actually more likely. Just imagine what is in store for silver given its historical price relationship with gold, Should we buy silver now?
History – During the phase for sliver in 1979 – 1980, the price of silver on 2nd January 1979 is as low as $5.94 and by early of february 1980 it increase to $49.45 (732.5%). Right now the current price of sliver is almost $21 and that might increase to $175. The current ratio of Gold:Silver is between 70:1 and 60:1. In January 1979, the ratio is 38:1 and on January 1980, it drop down to 13.99:1 ratio.
From my opinion, Comparing the pricing for a gold today is $1276.50 and silver price today is $20.82. Will it happen again in January 1980 where the ratio is 13.99:1. Where gold is $1276.50 using the above 13.99:1 gold:silver ratio puts silver at $91.24. Somehow, the value of silver is much more valuable compare to gold in the daily usage. We need silver from 3 areas, industrial uses, jewelry and silverware, and photography. Why does gold prices is much more higher than silver? The demand and supply create the price of the Gold but as we know silver is much more valuable.
