Higher GSR usually means lower PM prices overall.... PMs are at their frothiest when GSR is low AKA 1oz Au = 1kg Ag
In reality, the GSR is quite useless for anything..............it is dangerous to use it as a guide to buying or selling as it is simply a ratio...........It is not written in stone that the ratio will behave in certain ways that guarantee a trade......you will read posts touting 16:1 because of historical reasons or relative abundance...............pure speculation with no foundation...........recent history has shown that fundamentals play very little part in movement of price......a cycle is a cycle and can move against fundamentals for a long time. Don't be a mug and fall for such simple comparisons.
i think this is one of the main comparisons you should be looking at as to what you will buy gold or silver. We dont know when the gsr is going to turn around but if its 100:1 youd be a fool to stock majority of your stack with gold or if it was 10:1 to stock up on silver. I know it might go 5:1 but you dont need to catch the top or bottom to get a good profit.
