Posted 01/06/2012 6:10 pm
That 55:1 sounds pretty close, Hawk. I agree that the current G/S ratio is not what I would like it to be given the production and consumption levels of these metals. I don't know that 20:1, 15:1, or even 10:1 is a sustainable level but perhaps something around 30:1 would be. If we had a 30:1 ratio and a $1650 gold price that would put silver around $55. Of course, it would be difficult for silver to go up that much with gold only rising a few dollars from the current prices.
As to gold prices... so much depends on the economic and financial situation in the US, Europe, and Asia that it is hard to predict what will happen. My guess is as good as anyone's, I suppose, and is that gold will continue to bounce up and down while gradually rising. If it can get about $1650 it will probably keep rising until at least $1750. Before that happens, though, we could very well see a retest of the $1550 level, perhaps around the last week of Jan or the 1st week of Feb.
As to gold prices... so much depends on the economic and financial situation in the US, Europe, and Asia that it is hard to predict what will happen. My guess is as good as anyone's, I suppose, and is that gold will continue to bounce up and down while gradually rising. If it can get about $1650 it will probably keep rising until at least $1750. Before that happens, though, we could very well see a retest of the $1550 level, perhaps around the last week of Jan or the 1st week of Feb.
