Gold down - but silver up

Neptune

I thought silver followed gold - I guess that theory doesn't work.

ziggy29

<< <i>I thought silver followed gold - I guess that theory doesn't work. >>

Over time they tend to go up and down together, but over the short term there can be supply/demand influences as well as political influences that affect one but not the other, and they can (usually for short periods of time) go in opposite directions.

Deb048gold

Gold moves in opposite direction of value of the dollar. Silver rises and falls simply on Supply and Demand.

ttown

There is a normal ratio of 15 to 1 between Gold and Silver. A 64 to 1 ratio exist today, so silver is going to skyrocket or Gold is going to come way down in the near future IMO. I'd buy some silver...............

kranky

<< <i>There is a normal ratio of 15 to 1 between Gold and Silver. A 64 to 1 ratio exist today, so silver is going to skyrocket or Gold is going to come way down in the near future IMO. I'd buy some silver............... >>



I don't know when the normal ratio of 15 to 1 was established, but at no time in the last 100 years has the ratio been that low. The average ratio over the last 100 years is 46, and it has ranged from a low of 18 (in 1919 and 1968) to a high of 100 (1940-41).

ScarsdaleCoin

thank you Kranky....you saved me from saying it...

Conder101

I believe 15 to 1 was the "natural" ratio between gold and silver for a long period in the 15 and 16 hundreds but by the 1700's the ratio was drifting apart. (Before the 1500's I believe it was lower be the great influxes of silver from Central America to Europe caused silver to drop in value.) The silver strikes in the American West and the gold strikes in the East, California, Austrailia, the Klondike, and South Africa caused any idea of there being a "natural" 15 to 1 ratio to go out the window.