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With the Au/Ag Ratio Now At 61 & Change . . .

halfhunterhalfhunter Posts: 2,770 ✭✭✭
in Precious Metals
. . . Does this not indicate that silver is a little undervalued relative to gold?

? ? ? Opinions ? ? ?

Regards, John

Need the following OBW rolls to complete my 46-64 Roosevelt roll set:
1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
Any help locating any of these OBW rolls would be gratefully appreciated!

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    JoflaxJoflax Posts: 979 ✭
    I am buying Silver so it probably means that gold is overpriced and will correct and the price of silver will stay the sameimage
    Buy the dips!!!
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    CaptHenwayCaptHenway Posts: 31,550 ✭✭✭✭✭
    See this article:

    linky

    TD
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
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    JoflaxJoflax Posts: 979 ✭


    << <i>See this article:

    linky

    TD >>

    Nice article but I doubt that 2 banks could cause this much of a drop , I believe that the tendency in silver is for wild swings due to low market capitalisation , This type of action works in both directions , silver has been outperforming gold on the upside and was ripe for a bigger downside slide than gold when the dollar started strengthening.
    Speculation as to the reasons for the dollar strength is rampant in the different dollar denominated markets, but nobody really knows.
    Now is the time to decide whether to buy sell or hold. I started buying SLV at around $15 after sitting and waiting for a correction ...now I am averaging lower when I can afford it and my thoughts are that the dollar will weaken in the months after the election , and only then will we see the July levels again .
    Buy the dips!!!
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    DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>

    << <i>See this article:

    linky

    TD >>

    Nice article but I doubt that 2 banks could cause this much of a drop , I believe that the tendency in silver is for wild swings due to low market capitalisation , This type of action works in both directions , silver has been outperforming gold on the upside and was ripe for a bigger downside slide than gold when the dollar started strengthening.
    Speculation as to the reasons for the dollar strength is rampant in the different dollar denominated markets, but nobody really knows.
    Now is the time to decide whether to buy sell or hold. I started buying SLV at around $15 after sitting and waiting for a correction ...now I am averaging lower when I can afford it and my thoughts are that the dollar will weaken in the months after the election , and only then will we see the July levels again . >>




    Believe it!!

    Everything in that article is true, everything.

    Had dinner with one of the largest silver wholesalers in the US and the owner of a Houston B&M last night, one that probably deals in more bullion than any other around here by a large margin. This was obviously the primary topic of discussion through dinner and many drinks afterward.

    The total amount that the 3 of us had lost recently was staggering and I was by far the "little guy" in the room.

    I have a difficult time containing my disdain for SLV. You may think you are doing fine, but just check out the premiums if you want the physical in exchange for your paper. SLV still doesn't have anywhere near the real thing to back up what they have sold. If only 30% of you, and perhaps less, wanted the physical, SLV would be belly-up overnight.

    I remember what happened to paper silver holders in 1980, they deserved it and so do the suckers who are strong in paper metals currently.

    This is the time to buy and hold.

    Of course, I mean hold the real physical metals. Ultimately, paper is worth just that, paper.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
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    blu62vetteblu62vette Posts: 11,901 ✭✭✭✭✭
    I would be really curious to know what 2 banks held the shorts they are mentioning.
    http://www.bluccphotos.com" target="new">BluCC Photos Shows for onsite imaging: Nov Baltimore, FUN, Long Beach http://www.facebook.com/bluccphotos" target="new">BluCC on Facebook
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    HonoluluDudeHonoluluDude Posts: 2,167 ✭


    << <i>I would be really curious to know what 2 banks held the shorts they are mentioning. >>

    Goldman Sachs would definitely be at the top of my 'blind guess' list.
  • Options
    DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>I would be really curious to know what 2 banks held the shorts they are mentioning. >>




    Indeed.

    That's the problem here, it would take a lawsuit to force disclosure.

    There are a couple of culprits suspected as only a very limited number of financial institutions could actually even pull it off.

    Their connections to SLV, if any, would certainly raise some eyebrows and probably legal ramifications.

    I strongly suspect there are those connections, this entire thing smells very bad.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • Options
    DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>

    << <i>I would be really curious to know what 2 banks held the shorts they are mentioning. >>



    Goldman Sachs would definitely be at the top of my 'blind guess' list. >>



    Yeah, they've been mentioned.

    The list isn't that long and you may not be as "blind" as you guess.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
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    DoubleEagle59DoubleEagle59 Posts: 8,199 ✭✭✭✭✭
    BUY SILVER!!!!

    An incredible buying opportunity.
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
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    JoflaxJoflax Posts: 979 ✭


    << <i>BUY SILVER!!!!

    An incredible buying opportunity. >>

    I happen to agree , but the only place you can get it at anywhere near Spot is SLV or the kitco pool. So its paper silver for me until I can convert to physical.
    Buy the dips!!!
  • Options
    DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>

    << <i>BUY SILVER!!!!

    An incredible buying opportunity. >>

    I happen to agree , but the only place you can get it at anywhere near Spot is SLV or the kitco pool. So its paper silver for me until I can convert to physical. >>



    I can get a steady supply here on the Gulf Coast. The premums are nasty, but that's the way the game is these days. If you wait for spot to rise and get better spread prices, you will end up paying more in the long run.

    If you convert SLV to physical through them, you will pay more than the premiums on the current market. Quite a bit more in fact.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • Options
    JoflaxJoflax Posts: 979 ✭
    You can buy SLV today at 13.57 and oz while silver is at 13.66 and oz....in unlimited quantities.
    If silver goes back up to $20 , you can sell your SLV for 19.9 and buy physical at the going premium.
    The same applies to the kitco pool accounts , If you want to buy large amounts of silver at current spot prices, they are the only game in town whether you like them or not.
    Buy the dips!!!
  • Options
    DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>You can buy SLV today at 13.57 and oz while silver is at 13.66 and oz....in unlimited quantities.
    If silver goes back up to $20 , you can sell your SLV for 19.9 and buy physical at the going premium.
    The same applies to the kitco pool accounts , If you want to buy large amounts of silver at current spot prices, they are the only game in town whether you like them or not. >>



    Oh, I understand your position just fine. However, you may as well be buying graham crackers as you need to convert it back to cash first and then buy the physical. Don't forget to pay your 28% taxes on any gains first. Asking for your $$ share in the metal will cost you quite a bit more than even the current spread on physical. In spite of what SLV might try to push, you aren't really buying silver, you're just buying a gamble on the spot price and in doing so, you are helping to drive the spot prices down in the process. Sounds more and more like a derivatives market than a precious metal. But hey, what do I know?

    I am reminded of the old saw here; "If you are caught in a flood, would you rather have a boat or a certificate for a boat?"

    The damn shame is that worthless paper is screwing with the real metal spot prices and the entire market is upside down due to it. What really needs to happen is for people to ask them to deliver the metal and if there is enough rarity that will be the option for many. At that point the paper becomes near worthless and the real value of the metal will come to the fore in the form of a realistic spot price.

    The real plus would be SLV going bankrupt and those corrupt bastiges would get what they deserve. Maybe after all that, there might be some real regulation, there certainly isn't any now. It's a scam that reminds me of 1978-79 in PMs and Enron of the late 90s in energy.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
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    JoflaxJoflax Posts: 979 ✭
    Correct me if I am wrong , but I thought that if you cashed out SLV and bought physical silver then it is a "like for like exchange" and there is no 28% tax. Somebody out there know for sure?
    Buy the dips!!!
  • Options
    DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>Correct me if I am wrong , but I thought that if you cashed out SLV and bought physical silver then it is a "like for like exchange" and there is no 28% tax. Somebody out there know for sure? >>



    Not according to my tax attorney.

    Like for like exchange deosn't play well with the Feds when it comes to precious metals. They are in a class by themselves in this day and age.

    You don't have to report it, but you can bet the SLV will. If they don't have your SS#, you can be sure they will demand it before you can cash out.

    They've probably already got it, now that I think about it.

    The IRS will look at this as a stock certificate, but since it is in precious metal, gains are taxed at 28%.

    They get you coming and going, it's a certificate for metal, not like for like and it gets taxed at the highest rate.

    I was disappointed to learn this a few years ago, but not surprised. One of the several reasons I incorporated.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
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