Betting the house on silver

Posted | 21/11/2013 / Views | 2027
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Yesterday’s news post discussed the 1100% rise in the silver price from the very similar (to today) 1976 correction to the peak in 1980.  Consider this also… By 1980 it only took 34x1kg bars to buy a median house in Brisbane.  Today it takes around 635 kg.  Should history repeat (including the reversion of the gold:silver ratio) it could take about 30kg to buy a median priced house in Brisbane in 4 years time.  Or put it another way; if you spent around $52,000 on silver today (or less than $8K/month since May), under the scenario above you could buy a $515,000 home in 2017 by cashing in those bars.  We have many customers who come in religiously every single week or month (regardless of price) and buy a bit more silver or gold.  Their philosophy is not far removed from this scenario.  History has a tendency to repeat and broad consensus has us at or near the bottom now… just like 1976.