By: Lorimer Wilson
108 respected economists, academics, analysts and market commentators are of the firm opinion that gold will go to $2,500 and beyond before the parabolic peak is reached. In fact, the majority (75) think a price of $5,000 or more -even as high as $15,000 – is actually more likely. As such, just imagine what is in store for silver given its historical price relationship with gold.
Let’s look at the gold : silver ratio from several different perspectives:
– Over the past 125 years the mean gold:silver ratio (i.e. 50% above and 50% below) has been 66.9 ounces of silver to 1 ounce of gold.
– In the last 25 years (since 1985) the mean gold:silver ratio has increased to 45.69:1
– The present gold:silver ratio has been range-bound between 60:1 and 70:1 (58.8:1 as of October 6/10).
– Interestingly, during the build-up to the parabolic blow-off in 1979/80 silver outpaced gold going up 732.5% vs....