Your thoughts on Silver gaining ground on Gold...

DoubleEagle59

I like the fact that recently Silver has been gaining ground on Gold.

Put another way, the gold - silver ratio has fallen from 67:1 to a current 59:1.

However, I feel uneasy that this is temporary. The lower ratio won't last because I believe silver's current price surge may have more Industrial reasons behind it, which coincides with the 'hopeful' economic outlook for the future.

I still think the economic outlook is bleak and that there will be another susbstantial fall in the stock market and this will bring a steeper fall in Silver relative to Gold and will result in a Ratio back to 67:1 or even higher.

Your thoughts.....

Wolf359

silver's current price surge may have more Industrial reasons behind it,

In this economy you think industry is doing well? Silver is money. 15 to 1 is the proper ratio.

pmcollectour

<< <i>I like the fact that recently Silver has been gaining ground on Gold.

Put another way, the gold - silver ratio has fallen from 67:1 to a current 59:1.

However, I feel uneasy that this is temporary. The lower ratio won't last because I believe silver's current price surge may have more Industrial reasons behind it, which coincides with the 'hopeful' economic outlook for the future.

I still think the economic outlook is bleak and that there will be another susbstantial fall in the stock market and this will bring a steeper fall in Silver relative to Gold and will result in a Ratio back to 67:1 or even higher.

... >>

DoubleEagle59

<< <i>silver's current price surge may have more Industrial reasons behind it,

In this economy you think industry is doing well? Silver is money. 15 to 1 is the proper ratio. >>



I totally agree with you. Personally, I feel the economy stinks.

My point, is that the public perception of the economy is one of recovery, spurred on by the media propoganda and it is this 'false' recovery that is giving the "Industrial" boost to the price of Silver.

57loaded

i know you have a long held conviction to DOW = POG and GSR getting to more historic levels

let me ask you question with another question which scenario is more likely of the two above?

i think the GSR will narrow to a point then expand as the economy gets to a worse state of true failure.

if there is inflation with economic expansion (BRIC or even here) it's possible to see silver go through the roof or take a moonshot, otherwise, i think there will be a worldwide lack of faith in FIAT next year and the following few years (tipping my feeling of a hyperinflation scenario of how big i can't tell or know) which will help both metals but gold will always shine brighter...IMHO

HalfStrike

A bad economy may not mean a bad stock market, if a company lays off employees after mergers the company becomes more profitable but the economy can get worse. If the weaker companies go bankrupt those that are left become stronger.

I think gold and silver is sort of like oil and natural gas, at some point higher oil prices drive businesses to shift to lower natural gas price usage.

So people could flock to silver that missed the boat on gold.

DoubleEagle59

<< <i>i know you have a long held conviction to DOW = POG and GSR getting to more historic levels

let me ask you question with another question which scenario is more likely of the two above?

i think the GSR will narrow to a point then expand as the economy gets to a worse state of true failure.

if there is inflation with economic expansion (BRIC or even here) it's possible to see silver go through the roof or take a moonshot, otherwise, i think there will be a worldwide lack of faith in FIAT next year and the following few years (tipping my feeling of a hyperinflation scenario of how big i can't tell or know) which will help both metals but gold will always shine brighter...IMHO >>



I think both will occur at the same time.

BigMoneyLewis

By LAW, the ratio was set at 16 to 1 . We still have a LONG way to go until things are restored to correct levels.

Greg