Silver and Gasoline ratio points to $10-$11 bottom

L

leon1998

Member
Back in 1960s, 1 oz of silver can buy 4.5 gallons of gasoline. (31c junk silver per gallon) Over the last 50 years, it seems this ratio stay roughly the same; excluding the years when silver spot spiked. This year the US national average gasoline costs about $2.60 per gallon; if using the multiple of 4.5 (historical norm), we should have seen $11.7 per oz.

Just another way to calculate :P
 
interesting, but how much above ground Silver was around 1960 vs. to how much is around today ? Would this make a difference ?
 
Snoopy said:
interesting, but how much above ground Silver was around 1960 vs. to how much is around today ? Would this make a difference ?
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How much gasoline was around 1960 vs. to how much is around today ? :D

I still remember gasoline was around $1.2 per gallon in late 1990s, and silver spot was little above $5 per oz. So that's still about multiple of 4, after 30 years.
 
leon1998 said:
Back in 1960s, 1 oz of silver can buy 4.5 gallons of gasoline. (31c junk silver per gallon) Over the last 50 years, it seems this ratio stay roughly the same; excluding the years when silver spot spiked. This year the US national average gasoline costs about $2.60 per gallon; if using the multiple of 4.5 (historical norm), we should have seen $11.7 per oz.

Just another way to calculate :P
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Any particular significance to using the 1960's as a comparison point? Or just an arbitrary date you pulled out of your ass in order to suit your guess?
 
leon1998 said:
Back in 1960s, 1 oz of silver can buy 4.5 gallons of gasoline. (31c junk silver per gallon) Over the last 50 years, it seems this ratio stay roughly the same; excluding the years when silver spot spiked. This year the US national average gasoline costs about $2.60 per gallon; if using the multiple of 4.5 (historical norm), we should have seen $11.7 per oz.

Just another way to calculate :P
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I hope you are spot on with this, that would make my $11.80 call GOD LIKE:)
 
How about a welfare payment to silver ratio. Or national debt to silver ratio.
 
I totally thinks that peeps should embrace the asparagus to red onion ratio. That is the real teller but don't let on.
 
Gatito Bandito said:
Any particular significance to using the 1960's as a comparison point? Or just an arbitrary date you pulled out of your ass in order to suit your guess?
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It's what the chicken entrails revealed.
 
I have strong feelings that my calculation will be proven right again; whenever I was joked and ridiculed by most in this forum. :lol:

To be honest, Silver-Stackers forum's sentiment is a very reliable contrarian indicator :P
 
sterling-nz said:
leon1998 said:
Back in 1960s, 1 oz of silver can buy 4.5 gallons of gasoline. (31c junk silver per gallon) Over the last 50 years, it seems this ratio stay roughly the same; excluding the years when silver spot spiked. This year the US national average gasoline costs about $2.60 per gallon; if using the multiple of 4.5 (historical norm), we should have seen $11.7 per oz.

Just another way to calculate :P
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I hope you are spot on with this, that would make my $11.80 call GOD LIKE:)
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I am curious, if you both are that confident in your calls, are you shorting silver now? Or do you have inverse ETF shares (maybe the leveraged ones if you are that confident)? If you are correct and silver goes to $11.70 or $11.80 and you don't make any profit on it, what good is the call? That's like making a "pinky" bet on the superbowl or something.

I am not saying you will be wrong, my crystal ball broke a couple years ago. If I was as confident that silver would go UP, as some are here that it will go DOWN, I would be all in right now on bullion. Thankfully I am a bit more cautious. I do hope you both are correct though since I would like some cheaper silver in the stash.

Just my opinion.

Jim
 
Jim,

Actually I plan to short SLV soon. I am waiting for Banksters' short position build-up; so far it is not there yet. I have a formula to position my entry, based on Banksters' short/long ratio. :P
 
Here is one of my favorite pundits. He seems to agree with Leon and SterlingNZ about silver's future price. I have followed this guy's calls since mid 2000s and he is right much more than he is wrong.

Yes I know the interview is on silverdoctors.com, but don't hold that against Mr. Rogers. There might be some Brits on here that don't like him from the old days. One thing I like about him is he gives interviews all the time and doesn't play hide the ball with his predictions.

http://www.silverdoctors.com/theres-another-opportunity-to-buy-gold-and-silver-later-jim-rogers/

Just my opinion.

Jim
 
Jim4silver said:
Here is one of my favorite pundits. He seems to agree with Leon and SterlingNZ about silver's future price. I have followed this guy's calls since mid 2000s and he is right much more than he is wrong.

Yes I know the interview is on silverdoctors.com, but don't hold that against Mr. Rogers. There might be some Brits on here that don't like him from the old days. One thing I like about him is he gives interviews all the time and doesn't play hide the ball with his predictions.

http://www.silverdoctors.com/theres-another-opportunity-to-buy-gold-and-silver-later-jim-rogers/

Just my opinion.

Jim
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Jim Rogers is the only guy i give the time of day when considering where to put our money.
He is a character and his view on farmland for the future is SPOT ON.
We are always going to need food.
He is very keen on Russia (long term) and Myanmar .
Myanmar may come right sooner rather than later.
 
Jim4silver said:
Here is one of my favorite pundits. He seems to agree with Leon and SterlingNZ about silver's future price. I have followed this guy's calls since mid 2000s and he is right much more than he is wrong.

Yes I know the interview is on silverdoctors.com, but don't hold that against Mr. Rogers. There might be some Brits on here that don't like him from the old days. One thing I like about him is he gives interviews all the time and doesn't play hide the ball with his predictions.

http://www.silverdoctors.com/theres-another-opportunity-to-buy-gold-and-silver-later-jim-rogers/

Just my opinion.

Jim
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One of the best interviews I've read in a long time. Very solid advice.
 
It seems like you could make or lose alot of money in the next few years.
 
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