scyther wrote:Or it could mean silver is overvalued by 50%.
creshka46 wrote:scyther wrote:Or it could mean silver is overvalued by 50%.
Then That would mean that gold is over valued by 86%
joemac wrote:So lets take this a step further and say silver is undervalued to gold. Historically 15:1 to use round numbers. This equates to about $115 an ounce silver or $1.9 ounce copper. I come to copper doubling about 8.5 times in this scenario. Anybody is welcome to check my math.
This should put copper cents at about .15.
Then my next question is what's more undervalued silver or copper? Copper because it needs to double 8.5 times, where silver only needs to double 3.5 times. Smartest thing to do is buy the most severely undervalued metal and when the ratios come closer sell one and buy the other. Like getting free metal.
uthminsta wrote:Do think copper could ever really be as much as a dollar an ounce?
creshka46 wrote:If you read the silverdoctors article in the attached thread, I have a problem with his analysis. He compares the copper:silver ratio based on 100 copper cents to a silver dollar. Correct me if I'm wrong, but from 1865-1964 while we had silver dollars and small copper cents, weren't pennies really just tokens, even then? I mean, the gov was bound by law to fix the price of gold and silver but not copper, right? So I always believed that the copper value in a cent was never really related to its face value. Can anyone confirm or correct me?
68Camaro wrote:Buy anything actually made of copper (even rounds) and you're talking well more than $10/lb for the finished form.
uthminsta wrote:... a silver:copper ratio of 56.6:1 ... a gold:silver ratio of 14.28:1.
68Camaro wrote:Maybe you should look at the prevailing price of metal and not the silver to copper ratio based on coinage.
uthminsta wrote:b]Using the current spot price of copper:[/b]
Gold $204.29/Toz
Silver $14.31/Toz
Copper $3.68/lb ($0.23/oz)
What SHOULD the ratios be? Consider this: if those ratios were fixed, we would only need ONE spot price.
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