DislikedPrice relation of 1:16 ?
Silver's historical high in 1980 was around $48. Gold's historic high before 2008 was around $850. THIS ratio is 16 to 1.
You know the gold standard ended a while ago right?Ignored
Actually, the USA , unlike the rest of the world,had a Silver standard and not a Gold standard.
The $ has, since going off the standard, lost more than 80% of it's value. Since then Central bankers have effectively been given licence to run their printing presses overtime and flood the markets with worthless paper (a.k.a. inflation).The simple equation for you to contemplate is that if the gold/silver ratio traded at 16 to 1 in 1980 when the Hunt Brothers tried to corner the Silver market, when there were 3.5 billion ounces of each in existence, how hard is it to picture the ratio achieving that milestone now with 5 times as much gold as silver in existence? With silver so rare compared to gold, how hard is it to imagine the 16 to 1 ratio being blown away to the downside, as the world wakes up to these facts?
The other question you should be asking is: Did the oil price rise to $100 per barrel...Did Gold rise to $1000 per ounce... or did a worthless unbacked fiat world currency simply fall that far down the abyss?