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The Spread

quickwingquickwing Posts: 1,155
in Precious Metals
Consumer price on 1oz. gold coin-$900, 1oz. silver coin-$15 = 60/1 spread

Spot 1oz. gold-$855, 1oz. silver $11 = 77.7/1

How much longer will the 75+/1 ratio on spot remain? Is silver falsely low or gold falsely high? Do you think supply demand has anything to do with the current prices, or has price manipulation in the futures market caused this disparity?
OLDER IS BETTER

Comments

  • MoneyLAMoneyLA Posts: 1,825 ✭
    good questions. historically the ratio of gold to silver was either 17 to 1 or 20 to 1 depending on which "history" you want to follow.

    generally the belief is that silver is undervalued, and is undervalued because of the weak economy, and becuase in troubled times gold is bought and not silver.

    personally I think silver should have a run... but "you can't fight the tape" and you can't buck the trend, either.
    Cheers, Alan Mendelson
    www.AlanBestBuys.com
    www.VegasBestBuys.com
  • CladiatorCladiator Posts: 18,038 ✭✭✭✭✭
    I just hope silver stays low until I finish buying what I need to buy.
  • COINB0YCOINB0Y Posts: 4,505
    image
  • WalmannWalmann Posts: 2,806 ✭


    << <i>I just hope silver stays low until I finish buying what I need to buy. >>



    But can one's silver need ever be completely fullfilled?
  • COINB0YCOINB0Y Posts: 4,505
    That's a fundemental question of Life
  • jmski52jmski52 Posts: 22,796 ✭✭✭✭✭
    Spreads come and they go. PM pricing has as much to do with global politics as it does with supply and demand.

    There is no perfect and stable currency however, precious metals are the next-best thing.

    The new Zimbabwe note is 10,000,000,000. Can you imagine?
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 19,071 ✭✭✭✭✭


    << <i>Spreads come and they go. PM pricing has as much to do with global politics as it does with supply and demand.

    There is no perfect and stable currency however, precious metals are the next-best thing.

    The new Zimbabwe note is 10,000,000,000. Can you imagine? >>




    Just to play alongimage

    Gold has dropped 70% and rallied 300% over the past 20 years. Silver dropped 90% and rallied 400%. Imagine the chaos if the US dollar had such dramatic swings.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • CladiatorCladiator Posts: 18,038 ✭✭✭✭✭


    << <i>

    << <i>I just hope silver stays low until I finish buying what I need to buy. >>



    But can one's silver need ever be completely fullfilled? >>

    Sure it can. I have a fixed number of ounces that I need to aquire. Once I meet that number my attention will be directed elsewhere. I'm about 40% there right now.
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