Semi noob question re Gold-Silver Ratio

[ThisIsJoe]

Was never the math whizz, so asking what is probably an easy question to answer.

Q: When the GSR goes higher, do I buy silver or gold?

Note I'm not talking about swapping silver for gold or vice-versa. I'm talking purchasing with fiat.

Thanks guys

 

[RetardedMonkey]

Was never the math whizz, so asking what is probably an easy question to answer.

Q: When the GSR goes higher, do I buy silver or gold?

Note I'm not talking about swapping silver for gold or vice-versa. I'm talking purchasing with fiat.

Thanks guys

I find the GSR more about moving from one precious metal to the other.

If GSR is 1:10 (Gold:Silver), then you'd be trying to trade your Silver into Gold (or sell the Silver and buy the Gold)
If GSR is 1:70, then you'd be trying to trade your Gold into Silver

edit: For buying, it's more of a case of what you think the two prices will do.

 

[thatguy]

GSR > 40 = buy Silver
GSR < 40 = buy Gold

(N.B. this come from someone with no gold, and is financial advised so bet the farm why doncha )

 

[trew]

Q: When the GSR goes higher, do I buy silver or gold?

A higher GSR means gold is getting more expensive or silver is getting cheaper.
So in general, as the GSR rises you might consider silver a better buy, and as the GSR falls, gold becomes more attractive.

What ratio to use to decide which to buy? I have no idea.
Until recently, the GSR ranged between 50 and 70.
Recently, however, it's been as low as 33 and is today currently back to 55.

 

[Lav]

Source:http://goldprice.org/charts/history/gold_all_data_silver.png
In my opinion silver looks like its in a long term downwards trend when it comes to the GSR.

 

[hiho]

thansk for the chart Lav we are definaitelt in a longterm downtrend by that so if you used the gsr as a tool then yes you would be selling gold to buy silver or swapping alike