At the Diggers and Dealers Forum in Kalgoorlie, Australia, Pierre Lassonde said today that the price of gold is to surge above the $US1000/ounce level. If he is correct then where will silver prices be?

If we take a quick look at the gold to silver ratio we can see that from the chart below that the ratio is approximately 52, a gold price of $672 divided by a silver price of $13.09 gives us 51.33.

So if and when gold gets to $1000/ounce and the ratio remains the same then we have $1000/ounce for gold divided by the current ratio of 52 equals $19.23/ounce, very near our $20/ounce target price for silver.

Go Gold Go!

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