posted on Aug, 10 2011 @ 03:16 PM
Yes I'm totally with you on this one. This is true that gold is spiking upward really fast. I think too the downgrade of the credit rate of the U.S.
has something to do with it combined with fear and loss of confidence in the worldwide currency, the American Dollar. High price of gold is also an
indicator that things start to going wrong because when we consider what's happening around the globe economically it ain't pink and beautiful,
Another precious metal which would need to be considered is silver. It is much more reliable than gold in a manner that the everybody man and woman
can afford much more of it than gold. I wouldn't surprise me either to see silver spiking up as both gold and silver are related someway within a
Here is a link for a gold chart
Here is another link for a silver chart
at 16:00 gold cost 1688,80 $ and once and silver cost 39,35$ an ounce.
1688,80$ / 39,35$ (1 ounce of gold / 1 ounce of silver) gives us the gold - silver ratio which is currently 1/42,9174... It actually means that silver
isn't costing so much. For you to understand clearly it means that to buy 1 ounce of gold you would need 42,9174 ounce of silver to the precedent
When we compare it to gold which is a good news on a side. But on the other side gold spiking that much is to be considered as a mere sign of economic
trouble ahead. I expect (not predict but in my opinion) that this ratio will go down, which means silver may soar to a point where the ratio could
reach 1/20,1/15 or even 1/10 (in the worst case of course) as time goes by.
With that being said, the past isn't an absolute truth related to the future but I believe it will continue along this way because there are
currently many signs leading us to it. I talk about credit downgrade, not enough job creation, the loss of more than 600 points in the DJIA (Dow Jones
Industrial Average), Spain, Italy and Greece financial situation.