Gold-Silver ratio

dennis1219

The ratio between these metals is near 81:1. If I am not mistaken during silver run up to 50/oz, the ratio was near 30:1. Can someone explain how these metals decouple? Also, would anyone on this forum believe the large ratio disparity makes silver a genuine bargain today?

Billson

here is a historical gold to silver ratio chart from https://cdn.golddealer.com/wp-content/uploads/2015/01/graph.png?x76261. From the look of it, seems back in the 90's it went as high as 100? Here is a direct quote from that site, "The Gold to Silver Ratio is actually simple – it’s the amount of silver ounces it takes to purchase one ounce of gold. But that is about all that is simple with this ratio."

ricko

Buy low, sell high..... Sorry... but charts are always interesting...but always history and are not a crystal ball. Cheers, RickO

derryb

Actually 81:1 is the silver to gold ratio. It's screaming that historically silver is a better buy than gold at this time.

Billson

Here is my take on the gold to silver ratio: When it's high, such as right now at 81:1, you convert 1 oz AU to 81 oz AG. When the ratio drops, say at 40:1, you convert that 81 oz AG to 2 oz of AU. Keep doing that and you should have more of both at the end.

edited to correct grammatical mistakes.

derryb

@Billson said:
Here is my take on the gold to silver ratio. When it's high, such as right now 81:1, you covert 1 oz AU to 81 oz AG. When the ratio drops, say 40:1, you covert that 81 oz AG to 2 oz of AU. Keep doing that and you should have more of both at the end.

don't forget to allow for the "conversion" costs. But yes, a good way to build a bigger stack.

blitzdude

Supply and demand. Silver is viewed by many as industrial metal while gold is seen as a safe haven. Those that control the price have turned off the twitter accounts, took a look around for a minute and determined the economy is not doing as good as the propaganda machine suggests and that geopolitically the nation is in the crapper.