SLR ratio to GLD opportunity like when ....
- Thread starter kev
- Start date
Feduptryingnames
Member
Perth mint bullion depository is 111:1
+1 for Perth Mint Depository. Reasonable prices and all holdings backed by physical and Western Australian government guarantee.
I'm accumulating there at the moment with a view to converting to gold and redeeming when the ratio heads back to the mean.
Astonishing opportunity ATM in my humble opinion...
I'm accumulating there at the moment with a view to converting to gold and redeeming when the ratio heads back to the mean.
Astonishing opportunity ATM in my humble opinion...
SouthCoastSilver
Active Member
I feel somewhat similar, but I think such speculation is part and parcel of precious metals, I prefer to go down the economics and stats side of precious metals, rather than going down the numismatic coins
It is absolutely relevant when the natural ratio is 17:1 and the mining ratio is 9:1.
Then factor in global mine supply vs global demand and the decade of annual deficits.
The gold to silver ratio has historic and fundamental relevance, but shouldn't be used to determine fair value for each metal. Mining costs, supply and demand fundamentals and the current economic climate are the main areas I focus my attention.
One day the ratio has to come down somewhere near its natural or mining ratio. That could be 3 years or 30 years from now.
IMO - If the trend continues for supply and demand, we could see the ratio narrow significantly over the next decade due to simple mathematics. Our planet has a lot of silver - but very few large deposits which are economical to mine at these price levels (that aren't already being mined). most deposits aren't significant enough to sustain us at current levels of Demand for any significant amount of time. All the major deposits are already being mined and many are set to deplete by 2030.
Of course, a population reduction on a biblical scale would be a game changer.
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SouthCoastSilver
Active Member
What do you think will happen in the relative short term (excluding the silver shortage at the moment, like say this hypothetically December last year) about the ratio? Will silver surge, or gold drop? Potentially a combo of both?
I am pretty well versed about the economics and theory behind precious metal prices, but I am genuinely interested in your opinion
I actually rate this population reduce as the most likely scenario for the future. So..
For the people did survive the gold, silver,r housing to person on the planet be dramatically higher than they are now.
But if you're dead its not helpful to you.
All signs point to dark days ahead. But how dark will they be?
SouthCoastSilver
Active Member
But investing in mutual funds or getting tax concession for putting more money in your super isn't fun
Agree.
How is there no such thing?
There is a calculated ratio of gold and silver in the earth's crust. This is often referred to as the "natural ratio".
Are you seriously denying there is a ratio of gold and silver in the earth's crust? You're most welcome to... but you are far from convincing.
If you're attempting to dispute the natural ratio - explain why - instead of dismissing the natural ratio as a kook theory.
We were discussing the Deagle.com website on this forum before the Plandemic took hold. Their population predictions were dramatic to say the least. They stated on their website that their models use publicly available information from the NSA, CIA, FBI etc to determine future population levels.
Before the Plandemic, the figures on Deagle.com seemed unfathomable, or at the very least Absurd. Now, I wouldn't be surprised.
I think what he meant to say was that the "natural" ratio has no bearing on the price ratio... and nor should it.
Doesn't matter what the "natural" ratio is, what matters is the ability to extract it coupled with the demand (price) that justifies extraction. We have discussed this before.
The "natural" ratio means SFA in reality, and can be considered a kook theory - if the theory had any credibility, then logic would follow that Platinum needs to be 30x the Gold price to match the "natural" ratio..... instead it is 1/3 the price. Go figure.
^^ This has already happened to many. Just do a search of gold-silver ratio trading and advice on this forum to see that opportunity-costs (effective losses) for some members are in the vicinity of 50% in the last 24 months alone.
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Honestly, I have no idea. The silver market is tiny and anything could happen in 1 year.
I think we've seen a lot of institutional $$$ go into gold as well as wealthy investors and the switched on varieties of main street.
I think there are many things to consider for Silver.
The market is approx $15 Billion USD annually, not a lot of currency can go into silver investment. Approx $8 Billion of that goes to industry and only around 20% (approx 200-250 million ounces or $3 billion) goes to investment (Bullion), generally speaking.
The increase in demand for Silver Bullion in the recent months has exceeded the markets capacity to supply, creating a bottleneck.
Which raises the question: What is the capacity to supply investment grade Bullion to the market annually on a global scale?
It may be less than 500 million ounces, or approx 50% of the annual supply.
We are already seeing a divergence from the spot price for physical. I think if demand for physical continues, we could see this divergence expand to new levels. The paper Gold to Silver ratio can increase while the physical market ratios decrease. I think this is likely to happen for a while longer and to new extremes. I think this is just the first wave of frantic buying and the race to safe haven assets.
It's hard to look ahead with clarity in the short term, especially in this environment. I've been taking an observer's stance and just watch everything unfold before me. I'm just as curious to know what will happen over the next 12 months and can only speculate as to what that may be.
To Da MOON!!
SouthCoastSilver
Active Member
Always good to see someone else's take on things, the corona virus has been an interesting spanner in the works, limiting supply but increasing demand for bullion investments, while decreasing demand for industry. Will be a very interesting time ahead
Everybody put your pencils down, we already have a winning entry here. There is nothing to say the Ag/Au ratio won't blow out further or go sideways except for those who think it will because it's bloody well supposed to and/or they can feel it in their waters.
No good being buried with a coffin full of Silver and the headstone reading..."Died poor but with their Upside intact."