InternationalRockSuperstar Posted January 23, 2009 Report Share Posted January 23, 2009 As long as the ratio is this high, I will mostly buy silver, or palladium. The ratio between the spot prices is indeed very high, but the ratio between the price I can actually obtain gold bullion and the price I can actually obtain silver bullion is much lower. Anyone else also finding this? And which ratio do you think is more important when comparing with historic trends? Link to comment Share on other sites More sharing options...
G0ldfinger Posted January 23, 2009 Report Share Posted January 23, 2009 The ratio between the spot prices is indeed very high, but the ratio between the price I can actually obtain gold bullion and the price I can actually obtain silver bullion is much lower. Anyone else also finding this? And which ratio do you think is more important when comparing with historic trends? I buy cheap physical through GoldMoney at crooked COMEX prices. Retail silver is too expensive for now (given that I have loaded up on coins before the schisma happened). Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted January 23, 2009 Report Share Posted January 23, 2009 I buy cheap physical through GoldMoney at crooked COMEX prices. Retail silver is too expensive for now (given that I have loaded up on coins before the schisma happened). but aren't you going to have to convert it to physical at some point anyway? Link to comment Share on other sites More sharing options...
G0ldfinger Posted January 23, 2009 Report Share Posted January 23, 2009 but aren't you going to have to convert it to physical at some point anyway? It is physical when stored with GoldMoney. Also, they have a payment system. So, if I want to buy a house or car in the future and no one trusts paper currencies anymore, I will tell them to open an account with GoldMoney too, and I will transfer physical metal to their account. Link to comment Share on other sites More sharing options...
sash777 Posted January 23, 2009 Report Share Posted January 23, 2009 It is physical when stored with GoldMoney. Also, they have a payment system. So, if I want to buy a house or car in the future and no one trusts paper currencies anymore, I will tell them to open an account with GoldMoney too, and I will transfer physical metal to their account. If it really does go as t'ts up as CG is saying then how safe will allocated pm's be? Link to comment Share on other sites More sharing options...
G0ldfinger Posted January 23, 2009 Report Share Posted January 23, 2009 If it really does go as t'ts up as CG is saying then how safe will allocated pm's be? How safe will anything be (especially in your house)? Link to comment Share on other sites More sharing options...
G0ldfinger Posted January 23, 2009 Report Share Posted January 23, 2009 Interesting pattern in the ratio: http://gold.approximity.com/since2006/Gold-Silver-Ratio.html See also: Link to comment Share on other sites More sharing options...
G0ldfinger Posted January 23, 2009 Report Share Posted January 23, 2009 Silver Sammy had no showing recently as far as I know. http://gold.approximity.com/gold-silver_watch.html Link to comment Share on other sites More sharing options...
Pixel8r Posted January 23, 2009 Report Share Posted January 23, 2009 It is physical when stored with GoldMoney. Also, they have a payment system. So, if I want to buy a house or car in the future and no one trusts paper currencies anymore, I will tell them to open an account with GoldMoney too, and I will transfer physical metal to their account. You can only make payments in GoldGrams at the moment. I expect that will change at some point. Link to comment Share on other sites More sharing options...
warpig Posted January 24, 2009 Report Share Posted January 24, 2009 I came across this link at goldprice.org with gold and silver prices in Wiemar Germany during the 20's and was curious about the gold/silver ratio, so I chucked it in a spread sheet and this is what came out. I have to admit, the ratio from 23/10/23 onwards surprised me. Any thoughts? Link to comment Share on other sites More sharing options...
adcott Posted January 24, 2009 Report Share Posted January 24, 2009 If you view it in terms of percentage increases from the previous figure, both silver and gold are broadly in sync apart from one week where silver rose by ~36.5% and gold by ~136.5% ... it appears as though a zero has been inadvertently added onto the gold price. Link to comment Share on other sites More sharing options...
warpig Posted January 24, 2009 Report Share Posted January 24, 2009 I agree, I think it's a simple error. So does everyone expect the g:s ratio to return to 16:1? £40/t oz silver sounds nice... If you view it in terms of percentage increases from the previous figure, both silver and gold are broadly in sync apart from one week where silver rose by ~36.5% and gold by ~136.5% ... it appears as though a zero has been inadvertently added onto the gold price. Link to comment Share on other sites More sharing options...
ziknik Posted January 24, 2009 Report Share Posted January 24, 2009 I agree, I think it's a simple error. So does everyone expect the g:s ratio to return to 16:1? £40/t oz silver sounds nice... I think the ratio will come down to 25 this year and will spike* down to 5 at peak* * Are 'spike' and 'peak the right words in this context? Link to comment Share on other sites More sharing options...
dst Posted January 24, 2009 Report Share Posted January 24, 2009 Sorry if this stratery has been discussed before - I only just found out about it. I have been watching some of the TV programmes on hedge funds, one of the ideas they use is the long short trade: go long in one stock and short in another similar stock. For example if you think bank A is going to outperform bank B then you go long A and short B. So you make money if A outperforms B, lose if B outperforms A - but you don't lose anything if both the banks crash (the same amount) at the same time. So if you really think silver is going to outperform gold, then you could go long silver, short gold. So if both PMs fall you don't lose, you only lose if gold outperforms silver. Of course if you think both gold and silver are going to go up it is a bit of a waste of money. I think the strategy is more short term betting than anything and not for me at the moment, but an interesting idea none the less? Link to comment Share on other sites More sharing options...
warpig Posted January 24, 2009 Report Share Posted January 24, 2009 Even at todays gold spot rate, £130/t oz of silver would be exceptionally nice... I think the ratio will come down to 25 this year and will spike* down to 5 at peak* * Are 'spike' and 'peak the right words in this context? Link to comment Share on other sites More sharing options...
G0ldfinger Posted January 25, 2009 Report Share Posted January 25, 2009 http://news.silverseek.com/SilverInvestor/1232693400.php During our trip to Europe for the Silver Summit in three main cities London, Paris, and Munich it was relayed to this writer that the silver delivery times from the LBMA keep getting moved back. In fact it was suggested that any recognizable problem might actually take place out of London rather than New York. Link to comment Share on other sites More sharing options...
azazel Posted January 25, 2009 Report Share Posted January 25, 2009 I agree, I think it's a simple error. So does everyone expect the g:s ratio to return to 16:1? £40/t oz silver sounds nice... I think 16:1 ratio is reasonable especially as there isn't 16 x more silver than gold, mined or stockpiled. £40+ silver is not too expensive. When the gold rush really gets going, the relatively small quantities of gold will soon get exausted and then the masses will turn to silver, especially as it will seem cheaper if the ratio is greater than 16:1. Link to comment Share on other sites More sharing options...
ziknik Posted January 25, 2009 Report Share Posted January 25, 2009 There is less Silver. I believe this to be a more imporant chart. It shows the amount of above ground gold and silver in ounces since 1900. Use the chart to extrapolate the amount of above ground silver in 2020 and then tell me what you believe is going to happen to the price of silver. image from http://www.bullionmark.com/2008/12/how-muc...r-is-there.html Link to comment Share on other sites More sharing options...
warpig Posted January 25, 2009 Report Share Posted January 25, 2009 These are my thoughts as well. Silver will be the more affordable safe haven. I think 16:1 ratio is reasonable especially as there isn't 16 x more silver than gold, mined or stockpiled. £40+ silver is not too expensive. When the gold rush really gets going, the relatively small quantities of gold will soon get exausted and then the masses will turn to silver, especially as it will seem cheaper if the ratio is greater than 16:1. Link to comment Share on other sites More sharing options...
Icarus Posted January 26, 2009 Report Share Posted January 26, 2009 These are my thoughts as well. Silver will be the more affordable safe haven. I'm not so sure. At current rates of consumption ground silver will be completly exhausted before 2020. Therefore between now and 2020 the supply of and demand for silver must reach equilibrium. This can only be achieved by massive price rises. If supply does not equal or excede demand then then all available above ground silver will disappear. There will be a bidding war for freshly mined silver and prices wil be astronomical. I believe that righ now silver is the buy of a lifetime. Link to comment Share on other sites More sharing options...
ziknik Posted January 26, 2009 Report Share Posted January 26, 2009 deleted. Stupid question Link to comment Share on other sites More sharing options...
notanewmember Posted January 26, 2009 Report Share Posted January 26, 2009 I think the scrap price is the most important one to watch - unfortunate that theres no graphs. A closing gap between scrap price to spot price signals industrial demand oustripping mined supply. Link to comment Share on other sites More sharing options...
Icarus Posted January 26, 2009 Report Share Posted January 26, 2009 The shutting down of mines must be moving that 2020 date back (?) Silver is generally produced as a by-product of base metal mining. So silver production is difficult to increased without affecting the price of base metals. Currently mines are shutting down which decreases silver production. Silver consumption is almost certainly also decreasing. Maybe the two will balance perfectly, but I doubt it. My guess is that the reduction in supply will hasten the decline in above ground silver stockpiles. Link to comment Share on other sites More sharing options...
ziknik Posted January 26, 2009 Report Share Posted January 26, 2009 Silver is generally produced as a by-product of base metal mining. So silver production is difficult to increased without affecting the price of base metals. Currently mines are shutting down which decreases silver production. Silver consumption is almost certainly also decreasing. Maybe the two will balance perfectly, but I doubt it. My guess is that the reduction in supply will hasten the decline in above ground silver stockpiles. I realised that I’d asked a dumb question and tried to delete it before anyone saw it Thanks for your reply Link to comment Share on other sites More sharing options...
Pixel8r Posted January 26, 2009 Report Share Posted January 26, 2009 Silver consumption is almost certainly also decreasing. What about all the new uses for silver. For instance the silver zinc batteries that will start appearing in apple laptops this year. I agree photography is starting to use a lot less silver, but a lot of that was recovered anyway. Link to comment Share on other sites More sharing options...
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