G0ldfinger

Indeed! Another 1,000 oz off, and we're possibly in the cheapest 10% since 1930. In gold, it is not quite as cheap yet, but we are getting there. Given the housing bubble, combined with the anti-gold and anti-silver bubble, we might see the old all-time lows being taken out in the wake of this crisis. It is a possibility.

See you up theeeere!

http://gold.approximity.com/since1930/UK_House_Prices_in_Silver.html http://gold.approximity.com/since1930/UK_House_Prices_in_Silver_LOG.html

Very interesting indeed. I would not exclude it going higher after a short consolidation. Personally, I had to reduce my holdings a bit (as mentioned earlier, I am G0ldfinger after all... ), but I am still holding more silver (in value) than gold, which obviously has a lot to do with recent price action.

Thanks for this.

Yes, it is off the chart, so we'll have to wait on an improved update. The red dots (there should be 5 of them, but some are off) represent the last five trading pairs.

Gold still to be had early 2009 prices. http://gold.approximity.com/since2008/DJIA-Gold-Ratio.html

Come on, brother! That one pretty much corrected itself too!

Updates now available. E.g.:

Because of my personal circumstances, I can bear the risk silver comes with. That's why I bought a shed load of silver. I always had a silver exit strategy. I also have a PM exit strategy. People who have commented to the opposite have made me laugh in the past. The point, however, is that we are nowhere near a point where I would consider starting exiting PMs. With silver it is slightly different due to my over-exposure to it. So, I took some off the table, and as I said, will do again when the ratio dives further. I believe silver will make 20:1 or 15:1, I can even see 10:1 or lower! But no one can know for sure, so I have a strategy which reduces my exposure with the price going up relative to gold. Furthermore, I have an overall PM exit strategy which does a quite similar thing, but there the measure is much more complicated and not as simple as in the gold-silver comparison. Anyway, what I post should give a lot of clues about what I am monitoring for assessing gold's relative expensiveness.

I'd say general inflation awareness is higher than in the US (maybe than in the UK), especially since the EUR introduction and because of engrained hyperinflation stories. General exposure to PMs is maybe not better than in the US or UK. Lots of talking, and no actions by many IMHO.

See above post. But keep in mind that silver is gold's naughty little sister, so strong nerves are needed for any larger exposure. I've held silver through the $21 to $9 plunge in 2008. I will continue to hold a lot of silver. But the lower the ratio goes, the more I will take off the table and put into gold instead.

These arguments are the main reasons (industrial overuse, low supplies, silver shorts) why I am in silver. However, one issue is of course that silver has been demonetized, and that the market is much smaller, making it much more volatile than gold. I still hold more silver than gold (in value) - call me Silverfinger. But I took a first step towards reducing my position/exposure. I will possibly do more at 20:1, 15:1, and at 10:1 I will possibly be entirely out of silver. (EDIT: Keep in mind that my first larger goal from a few years ago was 35:1, so, I am just sticking to my original plan of taking some off the table by then.) Silver will easily take out $100, if not $200, in the years to come. But similarly, gold will rise a lot too.

This morning I have swapped approx. 25% of my silver holdings to gold. I am now still overweight silver. The gold:silver-ratio has only been that low in 29% of all trading days since 1885, so it seems a good time to swap some. The ratio might go lower or higher from here, I will do according swaps in the future. In general, I believe that silver will further outperform gold over the years, but I need to stick with my long term strategy which means I will reduce my silver exposure step by step to take volatility and risk out. In general, I reduce trading to a minimum. This is hence no trading, but rather a part of my silver exit strategy.

I am bahaack. I see silver almost got to $50. I see the Gold:Silver ratio went down to 30.5. Hmmm. I haven't sold a single grain of silver yet. No doubt, this is a good start. I am overweight silver, so I might swap some for gold, but I have a lot of reading to do now, and no time really...

Nailed it!! (Sorry, no time for more. Wife bugging me. Greetings from Espana!)

No, not going to Scotland. South France has nicer weather right now. Maybe in summer I'll hit the UK again. Yes, Jake, this was originally planned as a Japan trip. Oh well. We still want to go in the years to come, and I am not over paranoid regarding quakes and nukes. Yeah, silver! Moonshot in progress. They gave me a pretty fast little black BMW this time (so, if you see one down at the Mediterranean...). Fun to drive, but safety first. OK, so long.

I am going to be offline until after Easter. Don't let them steal your eggs, and watch silver!

ARE WE THERE YET??

I'd possibly give them mine at $100/oz, given the price of gold stays the same.

The squeeze is on. Fairly slow, but it could heat up towards a preliminary top, i.e. a preliminary low of the G:S ratio.

A typical silver short on the way to his bank: http://www.spiegel.de/panorama/bild-755576-200489.html

Cheers!

Thanks for all the praise. I made this prediction the first time somwhen in 2007, before the big spike up in 2008, just where you see that coiling pattern around 52:1. When the ratio exploded up to 82:1, I looked like a moron for a while. But I never thought it could last. The fundamentals...

$39? Show me 40!