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TXBullion
Penny Collector Member
374 Posts |
 Posted - 07/26/2010 : 21:41:44
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I hear quite a bit on the silver to gold ratio how now is abnormally high in relation to historical ratios. Do you guys think there is any validity to the ratio. What correlation is there with Gold and Silver. Ex.. Solar panels use high amounts of silver but no gold and industrial silver usage increases and price goes up. In this scenario how does it have any relation to gold? I just hear it alot and am wondering about the ratios credibility
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spartan_b88
Penny Sorter Member
USA
27 Posts |
Posted - 07/26/2010 : 21:53:08
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| I believe that there is some sort of correlation that should be considered. I believe that gold is over priced and silver is very much under priced. There has to be some sort of consideration for the years and years that silver/gold stayed in tandem somewhat. Silver around $50 doesn't seem so crazy when you see how much gold has been the last 2 years. |
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Kiwiman
Penny Pincher Member
225 Posts |
Posted - 07/26/2010 : 23:26:37
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| but silver was only at $50 because the hunt brothers were trying to corner the market. |
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Neckro
1000+ Penny Miser Member
Saudi Arabia
2080 Posts |
Posted - 07/26/2010 : 23:55:13
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| What happened in the 80's shouldn't even be considered into the value of silver. |
Trolling is an art. |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 07/27/2010 : 05:25:08
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historically, its 15-17 ounces of silver to one ounce of gold.
then the u.s. monetized silver because of huge deposits found in the west.
then, around the turn of the century, they demonetized it and spent prob. 50 years dumping its silver on the market. that supply is long gone. this is both bullish and bearish.
its bullish because it makes silver a coiled spring. we are at the inflexion point where that former supply is used up and the price resets. its bearish because the long period of suppressed prices made people think silver is not a monetary metal.
fwiw, most central banks do not hold silver, in part becuase of its bulk. so looking at the gold to silver ratio is a very crude tool.
as for the inflexion point idea, let me try to explain it further. after the cold war, russia entered an agreement to sell it uranium from missles to the u.s. this has meant there is a steady supply of uranium coming on to the market. that depresses the market supply. bu the instant that supply runs out, you can expect it to bump up like a stair on a staircase. btw, russia is not close to out of uranium but that agreement comes up for renewal soon and russia may not renew it. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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goodcoin
Penny Sorter Member
42 Posts |
Posted - 07/27/2010 : 07:42:51
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“I believe that gold is over priced and silver is very much under priced.”
“but silver was only at $50 because the hunt brothers were trying to corner the market.”
I believe that gold is underpriced and silver is way underpriced. As an investment, Gold, platinum or palladium is no longer affordable to the average individual (including me) trying to maintain purchasing power. Silver prices are relatively low in comparison to the other precious metals options. I feel that most people will start looking at silver and possibly copper as a hedge against inflation. I’m sure the Hunts brothers realized the scarcity and industrial demand of silver, and understood the concept of fiat currency before they decided to invest and corner the silver market. History repeats itself. This time it won’t be only the few like-minded individuals such as the Hunts brothers investing in the metals but rather the masses will be joining the stampede of purchasing silver to protect their life savings from becoming worthless thru hyperinflation. I have no clue what silver or other precious metals will be worth in the near or distant future. Thanks to the slapstick government (both republican and democrat), we are now entering the largest economic depression in the history of the USA and possibly the world. The fiat currency is going down the toilet. I plan to hold onto the copper and few silver coins I have so wtshtf I have something of value for trade.
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 07/27/2010 : 08:27:48
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i used to believe the same thing. now i believe something similar, but different in important ways.
both gold and silver are manipulated down via paper metal. silver more so than gold. so both are undervalued, and silver more so. on this we agree.
but what will be the impetus for a repricing? there is an infinite amount of paper available. if not, they'll just change the rules, ask the hunt bros.
no, the real impetus will be the worldwide failure of paper currency. and you have to ask where will that begin - with central banks who know more than the rest of us, or with the common man? if it begins with CB's, they'll buy gold and only gold. if it begins with the common man, they'll buy silver. its already begun with both, to a limited extent. i mean really take off. i expect the really big move to happen in gold only and a big but not nearly as big move to happen in silver.
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Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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Sheikh_yer_BuTay
Penny Pincher Member
USA
232 Posts |
Posted - 07/27/2010 : 08:47:06
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quote:
Originally posted by Kiwiman
but silver was only at $50 because the hunt brothers were trying to corner the market.
Factor in inflation and the $50 Hunt Bros. silver spike would now be roughly $137.50 today. Factor in inflation and the Saudi dollar dump of 1979, forcing gold over $800, would now be something like $2,300.00 That is the best indicator of lost purchasing power of the Federal Reserve Note ("I-O-U Nothing" notes) I can think of.
Washington is broken. The masses vote into power only those who will borrow money to satisfy the voters' lust for "free government money", with no intention of ever paying it back. There is no free lunch. Someday it must end.
So why not think about silver only hitting $50 in today's market?
If silver does not move up in relation to inflation... we silver hoarders are some of the biggest fools around. |
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Silver to Gold Ratio
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