Silver is one of the most volatile commodities that are traded on the market. The highest price that silver reached was on 18 of January 1980 when the price of silver hit the $49.45 because of the Hunt’s brothers who wanted to corner the silver price. To work out what the silver price Australia one has to follow the currency trade, between the U.S dollar and the Australian dollar.
Due to the currency exchange of the U.S, the price of gold in Australia was quite high in 2011 but when the dollar fell, so did the price of the precious metal fall in Australia. You can look back at this beginning with the most significant time in commodity trading
When was the price of silver at its highest?
In April of 2011, the price of silver reached new highs as the pound sterling peaked at 35% more than it had during its highest peak in 1980. The U.S dollar reached an incredible 98% which at that time was the highest it had ever been since the January 1980 peak.
On 28th April 2011 silver hit new highs for sterling and euro traders saw a marked improvement in the price of silver. However, the US dollar saw the higher increase peaking at 98%. However, the dollar still didn’t quite make it past its own all time silver price high of $49.45 it reached on 18th January 1980. During this time silver continued to rise in the face of the weak pound.
In March of the same year, silver rose to another significant peak especially in terms of the three major currencies: the Sterling, the Euro and the US dollar.
After the 1980 silver bullion’s incredible run (manufactured mostly by the Hunts brother’s attempt to corner the market, silver tanked but its movements were rather erratically. It dropped to an unprecedented low on the 25th February 1991. The Australian dollar also has had its own challenges. The exchange rate between the Australian dollar and the U.S has also not been as stable as it could be. However, as far as the economy and inflation is concerned Australia has been doing better than most so the silver price Australia has been a little higher than with other countries.
Why the Gold/ Silver Price Ratio has become as important as it has been.
When gold and silver were first mined and processed to create coinage and other products some 2,500 years ago the ratio of gold to silver as more like 10:1 which means that you needed to have 10 ounces of pure silver to purchase a single ounce of gold. With silver, the ratio also depended on how close gold and silver mines were from each other. The highest that the silver/ gold has been ratio in the last century peaked at 98:1. It has never gone past 10:1 since then. But with the current global issues, precious markets are becoming more attractive and there are more traders looking at silver as an investment option. The ratio is a worthwhile measure, but it is impossible to predict what this ration will be a month or a year from now.