That's one way to look at it. Another wise thing to know is that US dollar is much weaker now than back in 80s and there are no more stockpile of silver. $25~$30 is the bottom. IMO It looks like it will bounce back and complete the reverse head and shoulder pattern which was started since late September of last year. Over $60 by the end of year. IMHO
SilverSurfer, the author of the linked Seeking Alpha article initially states there is a dilemma in arriving at gold's value. After taking the reader through some seemingly narrow methods of estimating value he suggests some sort of value based on housing. : )) I wish the author had mentioned the U.S. debt to U.S. gross domestic product (GDP) ratio numbers going back 40 years. It would have shown the debt to GDP ratio has skyrocketed from 150% in 1970 to about 400% presently and gaining momentum ! Our debt to GDP ratio is presently more - a lot more - than in the Great Depression ! Another system of evaluation is what Mike Maloney describes as reconciling total dollars created to gold reserves. Best I can tell Mike Maloney is a good currency historian and according to him the market always has and will create its own way of defining the value of gold&silver. If this is true the market will establish the proper value.
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