POLL: Revisiting the GSR
derryb
Posts: 36,824 ✭✭✭✭✭
In the last 18 months the Gold to Silver Ratio has rapidly dropped from a high of 125 and was almost cut in half in less than 12 months. It currently sits around 68. Both metals have risen in price since the GSR peak, but silver's gains clearly outpaced those of gold. Is a GSR of 68 telling us that a reversal has arrived and gold is poised to outperform silver? I say no, the GSR will continue lower and silver will continue to be the smarter buying choice. My forecast of a lower GSR says that silver will continue to outperform gold at least through 2021.
Edited to add: For the purpose of this poll, "short term" includes the remainder of 2021.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Comments
sideways
Very good third option, too late to edit and add it to the poll.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
My choice was obviously based on short term performance.... Long term, I think gold is due for another surge. Cheers, RickO
I want silver to out perform gold mainly because I have more silver than gold and houses are expensive.
A best fit line on that chart indicates 80-90 as a target ratio, imo.
Liberty: Parent of Science & Industry
Looking at it from another perspective.....you can pick up an ounce of gold for close to spot but silver is another story. Retail US Mint silver eagles seem closer to $40. Apmex is asking around $300 for UNC rolls of 64 Kennedy's. That's over $40/oz. I'd say $1780/$27 is not an accurate GSR indicator. More like $1800/$40. At that GSR level, for me personally, silver is being slowly shown the door.
If I could get $40 for silver right now, I'd do it and move to AU. The only way I see it being done are places like Instagram and Marketplace- two venues I can live without.
I'd be interested to know if others view the GSR in 'paper' or 'actual'
GSR charts are going to reflect spot price. Historical "actual" data is not available. If one were to view GSR in "actual" one would need the historical data to compare to current "actual" calculation.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Gold close to spot where? I can't find a AGE with premium under $175 an ounce. Common date double eagles $200+ Please show me the way.
The whole worlds off its rocker, buy Gold™.
Blitz ... I don't keep track of daily machinations and sometimes I go back and forth between private/dealer & buyer/seller. And it makes a difference on the quantity.
If you're in the market on gold, buying at spot +20 and selling at spot +100 right now on 5-10 units seems fairly priced.
I can mention a month old story. I was at an upscale flea market/antique show recently and another coin dealer(good guy) was offered 2oz of graded PCGS gold. At below spot. Dealer #1 didn't have enough cash and introduced me to the 'seller'. I had the cash in my pocket. The guy needed cash and I verified the coins. Done deal. Moral: never need to sell on Sunday at a non coin show. You just never know. If you are in a small town, your only alternative to sell may be a pawn shop.