Too Busy Watching for $50
April 25, 2011
Will silver hit $50 this week and exceed the 1980 high? That question has to be in the minds of just about everybody who knows what the metal is.
It opened the week up strongly this morning.
Strong, though, is not a word that I would use to describe the response to this week’s poll question about silver, which went out in the Friday e-newsletter.
The question asked whether the old silver to gold ratio of 16 to 1 would be reached once again from the 33 to 1 that prevailed when the question was first posted on Thursday.
That would mean that silver would have to double while gold stayed the same price, or silver would have to rise more rapidly than gold and achieve the relative doubling over time.
When I opened my e-mail this morning, I had hardly gotten 16 responses. Actually, the count was 17.
While a lot of individuals seem to have strong opinions about where silver will be going – straight up – this historical reference to the old ratio official established in 1792 didn’t seem to stir the blood at all despite the blogs I have been seeing about it. I couldn’t help myself, either, as I wrote a blog about the ratio last week myself.
Perhaps it was the fact that the question was posed at Easter. Respondents had more to do than take an online poll or send me an e-mail.
Then again, thinking about the ratio is a bit counterintuitive. The ratio falls when silver rises faster than gold. That relationship is perhaps more than most wanted to think about in the past few days, or perhaps they are scrambling so much to keep their investments in order that they don’t have time to respond to a poll question.
I should have simply asked whether silver would hit $100.
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