Gold Silver ratio

[Pipers]

with the gold silver ratio at the 70/1 - 73/1 ratio. I would like your opinions whether you think that gold is cheap/expensive or silver is cheap/expensive. Or do you think that this is the new ratio norm, for the short term medium term or long term norm.

[mr-dead]

I think gold is cheap at the moment, silver even cheaper than it should be.

 

I think the GSR ratio will close in the future but not as much as historic levels.

 

Then again I could be talking crap

[sovereignsteve]

with the gold silver ratio at the 70/1 - 73/1 ratio. I would like your opinions whether you think that gold is cheap/expensive or silver is cheap/expensive. Or do you think that this is the new ratio norm, for the short term medium term or long term norm.

You can get many opinions on this but really, nobody has any idea.

[HawkHybrid]

the world is a different place to what it was,... but

some things never change.

 

one of the things that don't change is distrust

in others. that's where gold will ultimately shine.

 

if gold is so not important as told by the media/specialist

then why do we need the id required for £5k purchase

and id required for £10k purchase within a year. also

why would the world care if the fed sold all it's gold or not,

that was held in it's vaults? why would the us continue

to hold gold in it's vaults?

 

my position is still 100% silver as I expect the gold price

to rise in the future and the silver price to rise more.

whilst the gsr can still rise in the near future, the world

is changing.

 

HH

[Bumble]

I don't think the gold/silver ratio means much. The ratio of the prices of commodities only has significance when they are more or less fully interchangeable in their uses, so that if one becomes too expensive, buyers can switch to the other. But gold and silver are quite different metals with different uses. Some people make a lot of the fact that historically there was a long period when the ratio was about 16, but back then gold and silver were monetary metals and their value was tied to a defined standard, so it is hardly relevant any more.

[HawkHybrid]

gold britannia has a face value of £100,

silver britannia £2 ie a face value ratio 50/1.

is this number plucked out of thin air?

 

gold panda 500 yuan, silver panda 10 yuan,

ratio 50/1

 

gold eagle $50, ase $1, ratio 50/1

 

gold nelly 1000 shillings, silver nelly 100 shilings

ratio 10/1

 

gold maple $50, silver maple $5, ratio 10/1

 

gold philly 100E, silver 1.5E, ratio 66.6/1

 

could they be guessing that a modern day gsr of

on average less than 67?

 

 

so it is hardly relevant any more

it's too early to say for sure what is irrelevant.

we could be at a time for change and everything

could change including whether we will get a

silver standard or not.

 

HH

[Pete]

 

silver britannia £2 ie a face value ratio 50/1.

 

Seemed like a magic number 50:1 then i bought the new fine silver £20 face value Royal mint coin weighing only half and ounce.

[HawkHybrid]

Seemed like a magic number 50:1 then i bought the new fine silver £20 face value Royal mint coin weighing only half and ounce.

 

I was trying to compare 1 oz bullion coins face values

of same mint, similar coins, to try to get an idea of

how each mint values the gsr. each mint has the

freedom to stamp whatever denomination they

want and the actual figure is unlikely to affect sales.

this is assuming they don't stamp a value that is

over the spot price for each coin.

 

HH

[Pipers]

In the physical market the ratio is a lot less at 63/1 and thats buying krugerrands for gold and 1kg koala and maples for silver.  I always check the physical ratio its more important to me as I will exchange silver for gold given the right conditions.  

 

I don't know if gold and silver will go down in price.  If Greece default they will go up in price so mid may is important.  

 

The more I look into the amount of silver left in the ground the more I am convinced that the so called internet experts do not know how much silver is in the ground because the meteorologists don't.  The one thing I do know is the higher the price the better the mining technology and the more mines become viable.  Also I read somewhere someone stating $10000 Gold $500 Silver if this was true they would think about mining in even inhospitable places.    

[Bumble]

Prices like $10000 gold and $500 silver will likely only happen if there is a major financial meltdown. If/when that happens, you won't be worrying about the price, you'll be bartering your silver coins for food.

 

People who predict huge values for gold are usually assuming that in future we will need to return to the gold standard, so they divide the amount of fiat currency in the world by the amount of gold to get a price. At present there is little support for a gold standard, so it seems unlikely to happen. But China and Russia are both accumulating gold and may push for a gold standard in future.

[Pipers]

as I was saying bumble, it's only the Internet so called experts who say gold will go up to 10,000 dollars and silver go to 500 dollars.the chinese do not like to rock the boat and there gold hoarding has been because they do not trust the united states and the chinese hold massive amounts of us treasury bills.

if you are interested in chinese gold holding and Russia gold holdings further reading can be had at goldmoneys alistair macleod research.

[HighlandTiger]

Ratio has just dropped below 70 for the first time for ages

[redrug]

In the physical market the ratio is a lot less at 63/1 and thats buying krugerrands for gold and 1kg koala and maples for silver.  I always check the physical ratio its more important to me as I will exchange silver for gold given the right conditions.  

 

I don't know if gold and silver will go down in price.  If Greece default they will go up in price so mid may is important.  

 

The more I look into the amount of silver left in the ground the more I am convinced that the so called internet experts do not know how much silver is in the ground because the meteorologists don't.  The one thing I do know is the higher the price the better the mining technology and the more mines become viable.  Also I read somewhere someone stating $10000 Gold $500 Silver if this was true they would think about mining in even inhospitable places.    

 

 

I think even a meteorologist would be hard pushed to find many places less hospitable than a SA gold mine. Now if every cloud really did have a silver lining . . .

[Pipers]

Ratio back up to 70/1 in paper and 60/1 in physical in the UK/EU

[Stu]

Physical ratio remains around the same today. 60 silver for 1 gold based on £12 average sale on ebay (after fees) for an ounce silver, compared to a bullion 1oz of gold from HGM @£715 (3% over spot)

[Pete]

Haven't got the time right now to check but I wonder how the historic gold ( or silver ) ratio compared to Brent Crude looks ?

[HighlandTiger]

Haven't got the time right now to check but I wonder how the historic gold ( or silver ) ratio compared to Brent Crude looks ?

 

[Pete]

Thanks HighlandTiger - that chart needs someone with a PhD in statistics to trend or perhaps a pin with blindfold ?

[HawkHybrid]

Thanks HighlandTiger - that chart needs someone with a PhD in statistics to trend or perhaps a pin with blindfold ?

 

the chart does not take into account that recovery

rates for gold (ie grams of gold recovered per ton

of rock mined) have decreased.

 

HH

[shemyaza]

Where is the physical in that ratio. Isn't a contract made of paper?

Edit: My mistake, Isn't a Contracts for Difference CfD Contract, made of paper?

[HawkHybrid]

the gsr has gone up overall during the recent pm

price rises. not what I was expecting.

 

HH

[HighlandTiger]

the gsr has gone up overall during the recent pm

price rises. not what I was expecting.

 

HH

 

It earned me another free ounce of silver. Traded on Bullion Vault some silver into gold at 72.26 and traded that gold back into silver at 75.30, (should've waited a few more hours )

 

It's easy this trading lark..................

[HawkHybrid]

It earned me another free ounce of silver. Traded on Bullion Vault some silver into gold at 72.26 and traded that gold back into silver at 75.30, (should've waited a few more hours )

 

It's easy this trading lark..................

 

is it subject to cgt?

 

HH

[HighlandTiger]

I would assume so, although if I ever hit the £10k yearly cgt profit limit I'll be well chuffed. My idea though is if I did need to "hide" some profit I'll just withdraw some of the profit in cash from my bullinvault account and buy some sovs at 4% premium.

[HighlandTiger]

Gold silver ratio is at a massive high this morning of 76.5,

 

The 20 year GSR chart shows at interesting pattern similar to what was seen in about 15 years ago. If it continues to copy the past, then a big drop in the ratio is coming, meaning now is the time to buy silver as it won't be this cheap, (compared to gold) for much longer. And the high marked the start of the massive bull run.