Crazy gold and silver prices 20 years ago

Crazy gold and silver prices 20 years ago

Post by John Ston » Thu, 20 Jan 2000 04:00:00



Anyone care to share some of their experiences with the gold and silver
prices
going up like crazy 20 years ago?    Can't remember the exact dates but
in Jan. 1980
Gold hit somewhere around $800 an ounce (or maybe a little higher) and
silver
was around $50 an ounce.
 
 
 

Crazy gold and silver prices 20 years ago

Post by Bob Johns » Thu, 20 Jan 2000 04:00:00


Quote:

>Anyone care to share some of their experiences with the gold and silver
>prices
>going up like crazy 20 years ago?    Can't remember the exact dates but
>in Jan. 1980
>Gold hit somewhere around $800 an ounce (or maybe a little higher) and
>silver was around $50 an ounce.

The one thing about the rise was it lasted for such a relatively
short period of time that all of the folks claiming they sold at the
top of market probably didn't - selective memories ;)

Just for reference on November 1, 1979;
gold was $372.00, silver was $16.39, and platinum was $466.50

Closing high prices were;
gold     01/21/80   $ 834.00 (intraday over $850)
silver   01/17/80   $  48.70 (intraday was $51.50)
platinum 03/05/80   $1040.00

After all the fun was over, prices on April 1, 1980;
gold was $498.50, silver was $18.05, and platinum was $520.00

Best Regards,
Bob Johnson

--------------------------------------------------------------
GOLDSHEET Mining Directory      http://goldsheet.simplenet.com
Thousands of mining related links, with over 800 company pages
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Crazy gold and silver prices 20 years ago

Post by Ken Ba » Thu, 20 Jan 2000 04:00:00


[snip]

Quote:
>Closing high prices were;
>gold     01/21/80   $ 834.00 (intraday over $850)
>silver   01/17/80   $  48.70 (intraday was $51.50)
>platinum 03/05/80   $1040.00

The San Jose Coin Club show was January 27 - 28, 1980,
just shortly after the peak.   Many people looked on this
as a "short term buying opportunity" before silver went
up to $100 per ounce and gold to $2000 per ounce ...
[Note:  I know a guy with a 100 ounce silver bar that he
paid $3800 for who is still waiting for that runup....]
The guys next to me dealt mainly in foreign coins and
brought a scale to the show ... anything silver you wanted
was weighed and priced at $xx per net ounce ($35 IIRC).  
They sold $20,000 worth on Saturday alone ...

I was dealing mainly in US and Canadian coins at the
time, and this was my best show ever.   I sold virtually
everything made of silver, including Canadian silver
ProofLike sets at up to $50 each ...  It was almost
literally a feeding frenzy, with *everything* selling at
prices too high to be believed.  AH, them wuz the days ...

--

P. O. Box 32541                          website:  http://www.kenbarr.com
San Jose, CA 95152-2541    (souvenir cards, MPC, Hickey Bros. tokens)
408-272-3247                     Next show:  San Jose Coin Club, Jan 21-23

 
 
 

Crazy gold and silver prices 20 years ago

Post by note.bo » Thu, 20 Jan 2000 04:00:00


At the height of the silver boom I sold 5/6/- of pre 1947 50% silver UK
coins for ten times face value, 53.  That was a lot of money in 1980 or
whatever.  To me it was a big deal but the dealer I sold them to at a coin
show didn't even interrupt the conversation he was having with another
dealer.

I got a 1937 florin from the post office last week for 10p. You know the
one, the same P.O.  that has a tray for counterfeit one pound coins.  He
also has a bag for "odd" coins that turn up, he even has a few US quarter
dollars in there.  Billy

Quote:

> Anyone care to share some of their experiences with the gold and silver
> prices
> going up like crazy 20 years ago?    Can't remember the exact dates but
> in Jan. 1980
> Gold hit somewhere around $800 an ounce (or maybe a little higher) and
> silver
> was around $50 an ounce.

 
 
 

Crazy gold and silver prices 20 years ago

Post by Bob Johns » Thu, 20 Jan 2000 04:00:00


Quote:
>The San Jose Coin Club show was January 27 - 28, 1980,
>just shortly after the peak.

Probably the first major Northern California Show I attended, and
probably where I first met you.  It is hard to believe it has been
20 years, considering we are both still so young ;)

Quote:
>literally a feeding frenzy, with *everything* selling at
>prices too high to be believed.  AH, them wuz the days ...

Great for the dealers to clean out old inventory, but the general
public once again got in near the top.  As you say, many are still
trying to get even.  It makes me wonder how long for speculators who
bought Y2K silver bags near $6000 will wait to "get even"

Best Regards,
Bob Johnson

--------------------------------------------------------------
GOLDSHEET Mining Directory      http://goldsheet.simplenet.com
Thousands of mining related links, with over 800 company pages
--------------------------------------------------------------
COINSHEET             http://goldsheet.simplenet.com/coins.htm
Links and descriptions for over 1300 coin and currency sites
--------------------------------------------------------------

 
 
 

Crazy gold and silver prices 20 years ago

Post by Bob Johns » Thu, 20 Jan 2000 04:00:00


Quote:
>At the height of the silver boom I sold 5/6/- of pre 1947 50% silver UK
>coins for ten times face value, 53.  That was a lot of money in 1980

Also, the pound was stonger then ($US2.50),
versus its current value ($US1.64)

If anyone is interested in charting various currencies back to 1971,
this site is great:  http://pacific.commerce.ubc.ca/xr/plot.html

Best Regards,
Bob Johnson

--------------------------------------------------------------
GOLDSHEET Mining Directory      http://goldsheet.simplenet.com
Thousands of mining related links, with over 800 company pages
--------------------------------------------------------------
COINSHEET             http://goldsheet.simplenet.com/coins.htm
Links and descriptions for over 1300 coin and currency sites
--------------------------------------------------------------

 
 
 

Crazy gold and silver prices 20 years ago

Post by Fred A. Murph » Thu, 20 Jan 2000 04:00:00



Quote:
> At the height of the silver boom I sold 5/6/- of pre 1947 50% silver UK
> coins for ten times face value, 53.  That was a lot of money in 1980 or
> whatever.  To me it was a big deal but the dealer I sold them to at a coin
> show didn't even interrupt the conversation he was having with another
> dealer.

One American dealer testified in court that for a two-week period, he was
making a profit of $3 million a day.  Another posted on teletype that he had
a single day when he made over a million dollars.

Our average check for purchases off the street (not large dealer-to-dealer
transactions) for people bringing in their old class rings or silver coins
they had around the house was $250.  Put in perspective, that's why your 53
sale didn't raise any e***ment.

 
 
 

Crazy gold and silver prices 20 years ago

Post by Fred A. Murph » Thu, 20 Jan 2000 04:00:00



Quote:
> Great for the dealers to clean out old inventory, but the general
> public once again got in near the top.  As you say, many are still
> trying to get even.  It makes me wonder how long for speculators who
> bought Y2K silver bags near $6000 will wait to "get even"

I'm sure the group's logician will tell me I'm a hypocrite for this, but
consider these facts:

What causes prices to go up is more people willing to buy than sell.  More
demand than supply.

What causes prices to go down is more people willing to sell than buy.  More
supply than demand.

It stands to reason, then, that the typical investor (in coins, commodities,
stocks, whatever) is buying high and selling low, and the only time anyone
makes any money is when a temporary runup occurs, which the brokers/dealers
milk for all it's worth.

Keep in mind that the broker makes money whether the buyer does or not,
which is why I have actually heard brokers make the statement that "stocks
are overpriced and will go down at sometime in the next few years, but you
should still buy because historically, the trend is upwards".

In other words, pay $10,000 now for something you can buy twice as much of
in a few years when the price drops to $5,000, because in the long term it
will go to $20,000.

And people wonder why the rich get richer and the poor get kids.

 
 
 

Crazy gold and silver prices 20 years ago

Post by Larry Cald » Thu, 20 Jan 2000 04:00:00


At the time I worked for a major Gold/Silver Exchange and we had lines of
people out the door waiting to sell their family treasure.  We had long time
collectors bring their Whitman folders in and ripped the coins out to toss in
the sorter/counter.

It was so frenzied that we had to hire off duty uniformed police to maintain
order and ......to keep vest pocket dealers from approaching the people as they
stood in line.

Any Special Mint Sets were opened to toss the 40% half in the bag.  The balance
of the set went into the change drawer.

I believe the ANA in 1980 (New Orleans) was the first ANA convention that
allowed bullion sales.  We drove down with foot lockers full of 100 oz bars and
an *** amount of KRands............brought most of 'em back too.

It was great times but there was a lot of paronoia because of the amounts of
monies involved.

Larry
*(I don't use the *** to get high, I just admire its smell)

*Ray Wylie Hubbard "Conversation with God"  from RESTLESS KNIGHTS CD

 
 
 

Crazy gold and silver prices 20 years ago

Post by CCT1 » Fri, 21 Jan 2000 04:00:00


The tales about the "good, old days" are
to me very interesting.  Although I was
not an active collector then, I had friends
who speculated in the silver boom--most
of them got burned in the long run.

The only thing that really chafes my hide
about that euphoric episode is when
present-day dealers express everything
they sell in terms of the historic "high"
price, which is often a ridiculous 1989
figure.  The chief offender seems to be
David Hall, principal of PCGS and head
of North American coins.  His ads always
list a high current price, then advert to
an astronomical "top of the market" price
to make his uncompetitive prices seem
more reasonable.  That bothers me.

 
 
 

Crazy gold and silver prices 20 years ago

Post by John Ston » Fri, 21 Jan 2000 04:00:00


Quote:

> The tales about the "good, old days" are
> to me very interesting.  Although I was
> not an active collector then, I had friends
> who speculated in the silver boom--most
> of them got burned in the long run.

> The only thing that really chafes my hide
> about that euphoric episode is when
> present-day dealers express everything
> they sell in terms of the historic "high"
> price, which is often a ridiculous 1989
> figure.  The chief offender seems to be
> David Hall, principal of PCGS and head
> of North American coins.  His ads always
> list a high current price, then advert to
> an astronomical "top of the market" price
> to make his uncompetitive prices seem
> more reasonable.  That bothers me.

Ditto.  And Hall is not the only one that plays this game.  Its often
used to
show what a great "bargain" something is compared to its 1989 high.
Problem is that a high price in the past is no guarantee it will ever
get
that high again in your lifetime.
 
 
 

Crazy gold and silver prices 20 years ago

Post by Asdp » Sat, 22 Jan 2000 04:00:00


Quote:
>>Problem is that a high price in the past is no guarantee it will ever get

that high again in your lifetime.<<

I recall that in the roll boom of 1963-64 (long before the gold/silver boom of
1980), uncirculated 1950-D nickels were bringing about $30 each.  That would be
around $170 in today's dollars, which now would buy nearly a roll of them.