Gold Silver ratio

[HawkHybrid]

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. 

 

 

  

 

I'm going to guess that the gsr is going higher

before it turns, maybe 80+ 

 

HH

[HighlandTiger]

I'm agreeing with you there HH

[sovereignsteve]

seems to be up to 78.8 at the moment if my calculation is correct!

[Pipers]

Yeah, that's a good chart the thing is when buying physical in the hand the margins are high both when buying and selling 20% to buy and 87% to sell

So its 66-1 ATM then you have to swap into gold when the ratio is better so you are looking at better than 45-1 when taking postage into account.

[HighlandTiger]

now you know why I'm moving away from buying physical silver. The premiums are just too high for me.

[garthy]

Gold's showing it has no counterparty risk, where's silver definitely does have with regards to its industrial uses.

Yeah this gold to silver ratio should go higher.

[HighlandTiger]

On 8/24/2015 at 08:42, HighlandTiger said:

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. 

 

 

  

With the GSR sitting at nearly 82, it may be something of note that the last time it was as high as this, was at the start of a massive bull run. It would be nice to see something like this happen, and make a nice wad of cash in profit.  

[sovereignsteve]

yes I'm quite happy for silver to go up by 150% and gold by only 100%

[Bumble]

I continue to think that gold is the primary safe-haven asset and silver is only a side show. You often see YT commentators saying that there is 10 times as much silver produced as gold, so the ratio of their prices should be 10, but this is nonsense. The relative volumes of production have nothing to do with the relative prices. Prices are determined by supply and demand for each commodity, and the prices are set at the margin. Gold and silver are not fully interchangeable, so there is no reason to suppose that the ratio of their prices has any significance. The only connection is that when gold is very expensive, some buyers, e.g. in India, will buy silver instead, if that is all they can afford.

Silver is different from gold in at least three ways: 1. It is mainly produced as a by-product of other mining, e.g. of copper and lead, so the low price of industrial metals reduces the supply; 2. 50% of silver is consumed industrially, with solar panels being one of the main uses, but new technology will allow solar panels to be made without silver, so demand is likely to reduce; 3. The ratio of stock to annual consumption is fairly low for silver, but enormous for gold, so silver is likely to be much more volatile, while gold is relatively insensitive to production volume.

[HawkHybrid]

if the gsr measures silvers ability to replace gold (eg

historically on most occasions, 15 oz silver could

replace 1 oz gold) then the current increase of the gsr

can be seen as silver being less able to replace gold.

golds higher density means that in circumstances

where gold is used as a store of value would require

silver vaults that are ~28 times the size of gold vaults

(based on historic ratios of 15:1). space is increasingly

at a premium. I agree with those that say the newer

higher ratios are here to stay.

 

HH

[Pipers]

I am concerned with the oil price to gold not the oil price to silver! If we can agree that a sizable amount of silver is mined out of copper mines it stands to reason that silver supply will be dictated by industrial demand for copper, if copper mines close then it stands to reason there will be a drop in supply in silver.  At that point IMO the price of silver will go up in comparison to gold. 

[Vern]

GSR was 83.99 past the 10 year high.

I agree that gold is the safe haven go to, however now the gsr is getting stretched we will see more and more commentators that normally only talk about gold start talking about silver. What effect that will have remains to be seen but at some point people will probably catch on and physical silver supply will be under immense strain imho.

 

[sovereignsteve]

Gold will always be what gold is and always has been.

Silver however could easily be consigned to the history books as far as PM status goes if its use as an industrial metal is negated.

The GSR could easily go 200 , 300 and beyond.