GSR
OldEastside
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As I type this at around noon PST the GSR is 35.23 to 1
Were getting there.
Steve
Were getting there.
Steve
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<< <i>Would trading silver for gold be smart with the current GSR? >>
I'm hedging my bets regarding the GSR.
Currently, I'm split 50/50 with my holdings in Gold and Silver.
That way, either way the GSR goes, I can make the proper conversion to maximize my PM holdings.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
I read in another thread that the historical GSR is 16/1 (thanks Stew). Is this where we are going?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>I know that GSR is the gold/silver ratio, but I go back to my first question, where are we going?
I read in another thread that the historical GSR is 16/1 (thanks Stew). Is this where we are going? >>
Hopefully, back to the basics, But I'd be fine with a 20/1, I'm not greedy.
When houses that are across the street from the apartment I live in are
Selling, excuse me listed at $400,000 down from $650,000 two years ago
but in my opinion are worth $200,000 max, theres a problem, when my
measly savings account 0f about $4000 earns 0.23 Cents each quarter
theres a problem, when my rent goes up on average of 7% but my pay
only increases 2% theres a problem, the supermarket the gas station, oh
I could go on, but as an average guy that feels financialy discrimunated against
just like Silver over the last 30 years. Silver is my hero, along with 5 billion
Indians and Chinese.
Steve
<< <i>under 35 to 1 now
Im really amazed at that---27 year low.
Any move to 17 or 20:1 will be extremely short lived and may only occur during a thinly traded market such a "some Sunday night". It will not be a permanent ratio. History has proven so.
Knowledge is the enemy of fear
<< <i>
<< <i>under 35 to 1 now
Im really amazed at that---27 year low.
Any move to 17 or 20:1 will be extremely short lived and may only occur during a thinly traded market such a "some Sunday night". It will not be a permanent ratio. History has proven so. >>
Has history not proven the 16:1 ratio? And that the current ratio isn't the norm?
Many may think we're headed back to the days of the Wild Wild West, but I highly doubt it. Silver is on a nice run now where buying begets buying. I believe it is still in backwardation which always leads to a parabolic bubble type of move. Can the ratio go to 16:1 again, surely, but if so my contention is that is will last for mere days, if not hours.
Silver is a very thin market and right now we have lots of big boys throwing around massive amounts of money. A bubble is incredibly likely, if not assured.
Knowledge is the enemy of fear
If the big banks are really on the hook for a humongous amount of silver derivatives there's no telling where the GSR could end up.
Using relationships like amount of contracts and bullion traded on LBMA, Comex, etc, and amount of silver vs gold mined each year,
a ratio of 8-12 to one makes the most sense. Doing a rough estimate of 2800 tons of gold vs 900 MILL oz of silver per year, the ratio is about
10-1. Silver is being used up and gold is being accumulated. That tells me that approaching a GSR of 10-1 could be the norm in the future,
not the exception. There's not unlimited silver to mine like there was 130-3,000 yrs ago. And there was not essentially "unlimited" stockpiles
of sovereign silver like there was in the 1960's and 70's. It's all gone now. An integral part of the answer is how/when/if the fiat
currencies get resolved down the road.
With a 10-1 g/s mining ratio, a G/S price ratio of 50-1 to 100-1 as we've seen in the past decade or two is way out of line.
roadrunner
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