Gold silver ratio

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Silver bullitt

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After so many false starts over these past years I seldom get excited about an upward spike in spot prices, but......
Looking at that huge down spike in the GSR and simultaneous up spike in silver spot actually has me paying attention this time.
 
I wait forever and ever to trade in some silver for gold and I pick this week to trade kilo dragons for gold. I'm not doing any more until I see how this GSR thing plays out, might be able to trade kilo bars for half ounces instead soon.
 
phrenzy said:
I wait forever and ever to trade in some silver for gold and I pick this week to trade kilo dragons for gold. I'm not doing any more until I see how this GSR thing plays out, might be able to trade kilo bars for half ounces instead soon.
Click to expand...

I hear ya. I'd love it to get a little higher to start trading for some gold. I just sold a couple ounces last week, but what can you do.
 
No real reason to think it's going the magically reverse any time soon:
ACJUHEy.png
 
Silverpv said:
phrenzy said:
I wait forever and ever to trade in some silver for gold and I pick this week to trade kilo dragons for gold. I'm not doing any more until I see how this GSR thing plays out, might be able to trade kilo bars for half ounces instead soon.
Click to expand...

I hear ya. I'd love it to get a little higher to start trading for some gold. I just sold a couple ounces last week, but what can you do.
Click to expand...
Is this a joke that i am missing?
At this stage you would be trading every single oz of gold you own for silver, NOT THE OTHER WAY AROUND.
 
I know this may sound like a joke but was there not a regulation set years ago stating the GSR was to be 1-18?
 
Bigfella said:
I know this may sound like a joke but was there not a regulation set years ago stating the GSR was to be 1-18?
Click to expand...

I have never heard of such a regulation, and it seems like a stretch to even contemplate.
Gold and Silver are very different commodities, each with its own uses and values.

The relationship between the two metals only exists in the imaginations of their investors.
To say that the two are somehow tied together would be like saying that the price of oil should relate to the price of pork bellies.

Any similarity between the commodities would be coincidental and imaginary, and if we're going down that road, we might also consider the value of aluminum: In the mid-1800s, the first aluminum ingots on the market went for $550 per pound. Fifty years later, not even adjusting for inflation, it cost 25 cents for the same amount.

Each commodity should be regarded on its own, and any comparison to another commodity is irrelevant.
 
Ouija said:
Bigfella said:
I know this may sound like a joke but was there not a regulation set years ago stating the GSR was to be 1-18?
Click to expand...

I have never heard of such a regulation, and it seems like a stretch to even contemplate.
Gold and Silver are very different commodities, each with its own uses and values.

The relationship between the two metals only exists in the imaginations of their investors.
To say that the two are somehow tied together would be like saying that the price of oil should relate to the price of pork bellies.

Any similarity between the commodities would be coincidental and imaginary, and if we're going down that road, we might also consider the value of aluminum: In the mid-1800s, the first aluminum ingots on the market went for $550 per pound. Fifty years later, not even adjusting for inflation, it cost 25 cents for the same amount.

Each commodity should be regarded on its own, and any comparison to another commodity is irrelevant.
Click to expand...


The relationship between the two metals only exists in the imaginations of their investors.

You should research that. :)

GSR
 
Holdfast said:
Ouija said:
Bigfella said:
I know this may sound like a joke but was there not a regulation set years ago stating the GSR was to be 1-18?
Click to expand...

I have never heard of such a regulation, and it seems like a stretch to even contemplate.
Gold and Silver are very different commodities, each with its own uses and values.

The relationship between the two metals only exists in the imaginations of their investors.
To say that the two are somehow tied together would be like saying that the price of oil should relate to the price of pork bellies.

Any similarity between the commodities would be coincidental and imaginary, and if we're going down that road, we might also consider the value of aluminum: In the mid-1800s, the first aluminum ingots on the market went for $550 per pound. Fifty years later, not even adjusting for inflation, it cost 25 cents for the same amount.

Each commodity should be regarded on its own, and any comparison to another commodity is irrelevant.
Click to expand...


The relationship between the two metals only exists in the imaginations of their investors.

You should research that. :)

GSR
Click to expand...


Over the past several hundred years, various governments set their own "ratios" with respect to how many ounces of silver would equal how many ounces of gold. For a long time the US gov artificially set that ratio at 15 to 1. I have attached a somewhat dated article that gives a bit of history from various places regarding the gold to silver ratios of the past.

In modern times (we'll say since 1971), silver and gold tended to move "together", although silver tends to move farther and sometimes faster in the direction of the current trend. That is why when prices are falling, silver falls at a higher percentage than gold- then the ratio gets bigger, kind of like where we are now. When the prices are rising, silver goes up at a higher percentage than gold and the ratio gets smaller. Back in 2011 at the top of the prices, the ratio got down to roughly 32. Today we are near 80. Based on history alone, silver is a better buy now. That doesn't mean the ratio couldn't spread to 100 or more in the future, but if you follow the past market behavior and the "odds", silver looks better now based on the ratio alone. If you add silver's many industrial uses, I think that only adds to the "value" of silver over gold right now. My goal is to buy silver then if/when the ratio tightens again, say to under 40, I will sell some silver for gold.

http://www.financialsense.com/contributors/ryan-jordan/the-gold-silver-ratio-is-misleading

Just my opinion.

Jim
 
This time of day I don't intend to the numbers, but if you look at the ASW of an Australian crown or florin, etc, and compare it to the AGW of a sovereign, you get a 16:1 GSR. And this is in living memory.
 
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