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Gold/Silver Ratio

PostPosted: Sat Feb 08, 2014 7:30 pm
by Hawkeye
I was just wondering if any of you take the gold/silver ratio into account when you are deciding what to buy and if any of you have any knowledge about why it is what it is and where it should be. Right now, it's sitting around 63/1, which seems high to me. I know it's been everywhere from roughly 18/1 to 100/1 in the last 30 years, but it was historically closer to 16/1. Is there a reason that it's been so high lately?

My thinking is that if I buy silver at 63/1, I can convert some of that to gold when the ratio is more favorable. Does anyone else do this, or do you just go with whatever deal happens to present itself? I'm just curious.

Re: Gold/Silver Ratio

PostPosted: Sat Feb 08, 2014 10:16 pm
by joemac
I'm only buying silver right now because of this. I intend to trade silver for gold when the ratio rights itself. This turns pm's into an active investment like something that pays dividends.

If you really want good commentary on the subject Franklin Sanders is even who David Morgan recommends.

Re: Gold/Silver Ratio

PostPosted: Sat Feb 08, 2014 10:39 pm
by silverstacker
I'm currently on a silver spree but do take advantage of gold when the price is right. At these silver rates its tough not to jump on the deals right now i.e APMEX ASE deals.

Re: Gold/Silver Ratio

PostPosted: Sat Feb 08, 2014 10:39 pm
by reddirtcoins
since 1971 the game has changed. Nothing wrong with keeping an eye on this. I'm stacking a lot more now that it is above 60. I nailed it back when it went down below 40... every little bit helps...

Re: Gold/Silver Ratio

PostPosted: Sun Feb 09, 2014 12:24 pm
by Silverfondler
It is being manipulated pretty bad by big players. I agree it is historically closer to 16 to 1. In my mind two things will happen either silver will shoot up and correct itself to the correct ratio. Meaning that Silver is the most under-valued asset of our time currently. OR, gold will correct itself in the near future and drop to its correct value. Meaning it is the most over valued asset of our time.

Either way I am betting on silver going up and looking at our current time as a fire-sale on Silver. I try to keep my stacking at a 90% silver to 10% gold.