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Do You Believe the Gold / Silver / Plat Ratios are way Out of Whack?

dragondragon Posts: 4,548 ✭✭
in Precious Metals
.....and do you also believe that gold either has to come way down, or silver and plat have to go much higher to correct historical price ratios?

Comments

  • carscars Posts: 1,904
    I'm banking on silver for many reasons including the ratio.
    Its all relative
  • SilverEagles92SilverEagles92 Posts: 6,787 ✭
    I don't follow platinum, but I do believe the Gold/Silver ratio is completely out of whack.
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  • fcfc Posts: 12,793 ✭✭✭
    first of all i do not put much salt into this historical ratio charts to base
    any decision making on. Just look at the long term charts and please
    explain to me what is "the normal ratio amount".

    image
    image

    It looks like to me the average price of an ounce of silver should be
    about 6-7 bucks.

    It looks like to me the average price of an ounce of gold should be
    about 500-600 bucks.

    If you want to discuss long term price averages... with a touch of inflation
    added in.

    That gives a ratio of 74-84 depending on the numbers you choose.
  • jmski52jmski52 Posts: 22,899 ✭✭✭✭✭
    I don't know how a ratio can be anything other than an artifact.

    I agree with fc's comments (not the numbers, but the idea). As "stuff happens" the ratios will change. Supply and demand fundamentals simply have to be different now from what they were in 1985, and they will be different in 2025 as well.

    A "normal" ratio is all in the imagination of the beholder.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • ProofCollectionProofCollection Posts: 6,252 ✭✭✭✭✭
    The supply of gold has increased at a steady rate over the years, while the supply of silver has decreased as silver is consumed. One would expect the overall trend to favor silver vs. gold.

    Yes, "stuff happens," but that should even out over time, IMO. Supply and demand.
  • RWBRWB Posts: 8,082 ✭
    Is it the implication that there is supposed to be some standard ratio between the values or production quantities of the three metals? If so, how are they related?
  • ProofCollectionProofCollection Posts: 6,252 ✭✭✭✭✭


    << <i>Is it the implication that there is supposed to be some standard ratio between the values or production quantities of the three metals? If so, how are they related? >>



    There is a historical range. The theory is that when the ratio reaches one end of the range, it is likely to come back and eventually test the other end of the range. This has happened several times.
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