SLR ratio to GLD opportunity like when ....

Discussion in 'Silver' started by kev, Apr 26, 2020.

  1. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    If we go by that, then what's the opportunity cost of not putting everything into bitcoin 5 years ago? Of course, I don't advocate putting everything into silver, maybe 5-10%, that can't do much harm or cost too much in terms of gold gains?
     
  2. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Agree, somewhat.
    But that's not my point.
    Shifting between assets (gold/silver) based on a ratio theory that is looking more irrelevant by the day has been costly for some already.
     
  3. Slimey

    Slimey Well-Known Member

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    upload_2020-4-29_5-58-51.png

    upload_2020-4-29_5-59-16.png

    The thing to focus on is not the value of the ratio. Compare the ratio from 1972 to the end of the last major silver run in 1980 and you will see something much more important. There were 4 occasions where silver demand spiked (ratio dropped), 2 before the mid bull run pullback and 2 after. In comparison, we are now waiting for the 1st run after the mid run pull back.
    It is a representation of the pendulum that swings between gold and silver. It is behavioural.
    The major sell signal is the end of the 4th significant drop in the ratio.
     
  4. Alloy

    Alloy Member

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    I didn't know it was about the crust. I thought it was some kind of ratio from olden days that no longer applies.

    The ratio in the crust is semi-arbitrary. Relative scarcity in the crust is only one factor in the value of a metal. It won't map cleanly to that ratio.
     
  5. kev

    kev Member

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    Really thought provoking replies. I thought at the beginning of this post 90% would be in favour of the opportunity. But it is way more balanced. Definately helping me gather my thoughts.
    My feel is that 70:1 is more inline with what it should be, but that is just 'in my waters.
     
  6. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    I suspect when the lock down in India is lifted probably the end of May, people will be selling gold and buying silver. But might not change spot as we know physical demand don't affect spot price.
     
  7. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    A GSR of 1:85 is more realistic. "maybe" :D
     
  8. Krakked789

    Krakked789 Active Member

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    I'm sure the guys at McAlvany Financial are not looking at these ratios as being "irrelevant". Check out their YouTube channel.
     
  9. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Dropping - 104
    Nice rise in Spot Silver yesterday, 5.2%.
    Silver has broken the $16.50USD
    Silver at $25.92AUD
    Aussie Dollar still trading sideways at about 64 and holding a tight pattern.
     

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