In the 70's gold went up above 800 and silver to 50? Gold is currently $600 and silver is $13
Demand for these metals and copper is beginning to outstrip supply and reserves are getting harder to replace every year like what is happening with oil. People are saying we might be also reaching PEAK Precious metals.
Why did gold and silver go so high in the 70's?
--An energy crisis which is happening again.
--Inflation which went out of control came because of the energy crisis which will happen again.
--Troubles with the Arab countries and Iran. Sound familiar??
Other things that will cause gold and silver to continue upwards in the next few years:
--Peak oil this time, not just an energy crisis, the mother of all energy crises is coming this time.
--Peak gold and silver?
--This time we'll also soon have a sinking dollar.
--The housing bubble will soon burst when the ARM loans readjust over the next two years.
--Trade imbalance is over 6% of GDP.
--The savings rate of Americans is less than 0%, where it hasn't been since the Great Depression.
--The U.S. govt. and its people are in a LOT of debt.
--The baby boomers are retiring and will cause deficits to skyrocket even more or will cause taxes to have to increase to pay for their Soc. sec. and medicare payments which have been spent over the years by our retarded politicians.
Gold and silver will go up a lot in the next couple years. It has just begun. This I believe very strongly in.
You should listen to Jim Puplava's radio show at:
http://www.netcastdaily.com/fsnewshour.htm
Jim has become very bullish the last 5 years on commodities mainly because of his peak oil beliefs and he's helping a lot of people make a lot of money.
He's a great economist that links what will happen when the oil prices keep going up and all the above factors begin to affect the economy. His latest interview, found at the above website, is with Peter Terzakian who wrote "Thousand Barrels a Second" which is one of the newest Peak Oil books out. It's worth a listen.
Jet