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Is there a ratio of gold to silver that could help determine which metal to buy?

jessewvujessewvu Posts: 5,063 ✭✭✭✭✭
in Precious Metals
It seems silver is trading at a lower ratio to gold than it did about two years ago. Does that mean it is a better deal?

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    JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭
    Most people will tell you that silver is the better buy on this forum. They maybe correct.

    The historical ratio is tilted favorably towards gold at the moment.

    Two things-

    1) Gold is getting the added boost of being a world currency at the moment in this crisis.

    2) The past rolling 12 months silver has performed gold by a considerable difference.

    MJ


    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
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    CnitasCnitas Posts: 373
    A ratio will present 2 options. The ratio you ask about means either 1. Gold is overpriced, OR silver is underpriced.

    Mark Piersall
    Random Collector
    www.marksmedals.com
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    roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Silver tends to outperform gold and the end of inflationary cycles such as in the late 1970's. Gold peforms best in the early innings when people are deciding whether we have deflation or inflation. When people finally figure out that inflation during bad times is quite possible then silver will respond.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
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    SportsModeratorSportsModerator Posts: 1,624 mod
    Cover your bases................buy both

    Forum AdministratorPSA & PSA/DNA ForumModerator@collectors.com | p 800.325.1121 | PSAcard.com

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