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phillips24
Penny Pincher Member
USA
142 Posts |
 Posted - 04/28/2009 : 18:13:25
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What are your strategies for the Gold/Silver ratio. Or do you ignore it altogether. The research I've done has said that the historical ratio is near 1:13 gold to silver. There were also times in history where silver was considered more valuable than gold. Interested in all your thoughts so I can formulate my own strategy.
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Nickelless
Administrator
USA
5580 Posts |
Posted - 04/28/2009 : 18:32:43
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I'm buying all the silver I can afford and plan to hold onto it indefinitely. A lot of analysts, David Morgan and Ted Butler are ones that come to mind, expect silver to eventually past $100 an ounce. A similar move with gold would put it over $6,000 an ounce, which is highly unlikely without a total meltdown of the dollar. But silver's relative rarity compared with its demand and its decreasing supply give it a lot more upside potential than gold. Google David Morgan and Ted Butler for some really good articles on the silver market.
Now is the time to trade gold for silver to get the most bang for your buck, so to speak. With the price ratio at just over 71.5 as of today's close, you could trade one ounce of gold and get 71.5 ounces of silver for the price, all other factors being equal. Then as silver's price rises and the gold/silver price ratio drops, if for example the ratio reaches 50 to 1, you could trade 50 ounces of silver for one ounce of gold and still have 21.5 ounces of silver left. |
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Edited by - Nickelless on 04/28/2009 18:36:02 |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 04/28/2009 : 18:41:46
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| I understand you really have to go way, way back to get that 1:13 or less ratio. Long before the new world silver came on board. But having said that I think that because of unrecoveable industrial useage the ratio will become much more closer again. The longer industrial demand for silver remains the more bullish silver over gold becomes. |
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Think positive. |
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phillips24
Penny Pincher Member
USA
142 Posts |
Posted - 04/28/2009 : 18:51:39
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| So when Gold goes up and the gap closes, you could sell silver and get gold. And when the gap widens you sell gold and buy silver? |
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Nickelless
Administrator
USA
5580 Posts |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 04/28/2009 : 19:03:06
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quote:
Originally posted by Nickelless
quote:
Originally posted by Ardent Listener
I understand you really have to go way, way back to get that 1:13 or less ratio. Long before the new world silver came on board. But having said that I think that because of unrecoveable industrial useage the ratio will become much more closer again. The longer industrial demand for silver remains the more bullish silver over gold becomes.
And if someone in Washington is refusing to audit the options markets on precious metals, we could see a major upward price swing once all the paper contracts for silver delivery come due and suppliers can't deliver because the silver exists only on paper--and when that happens, silver will skyrocket.
Here's David Morgan's site: You must be logged in to see this link.
And here's Ted Butler's: You must be logged in to see this link.
Yes, Ted and David have been saying that for a long time with a lot of precictions that have pasted and didn't occure, but the fact remains that silver is being used up and gold isn't. Both are dam good bets for the future but most of my FRNs are going towards silver. Not to be taken as investment advice.. as always.  |
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All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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Nickelless
Administrator
USA
5580 Posts |
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Gold/Silver Ratio Strategies
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