Tag Archives: gold:silver ratio

Silver has had quite a run the last couple months... so it's no surprise that it has gained much attention and interest from investors - even more so than gold. It is extremely volatile, however, and tends to rise or fall in spurts so I'd like to focus on its attributes as compared to gold, make a case for holding some, and discuss some ultimate price possibilities. Words: 1606

The fiat currency experiment will end badly in a currency crisis. The wealthiest people will be those who bought silver today and were smart enough to research and pick the best silver mining stocks.

Should you buy & hold your gold or silver or switch back and forth depending on the gold/silver ratio? This article examines 3 scenarios and identifies certain rules that should be followed to make the most of the ups and downs of the gold/silver ratio to substantially increase your holdings over time.

The gold-to-silver ratio indicates whether gold or silver is undervalued or overvalued relative to each other. Many people believe the ratio should be roughly 16:1, since it was the level observed [over the] centuries, but this is nonsensical reasoning. Let me explain.

Why do some analysts argue that the gold:silver ratio should reflect the relative rarities of the two metals in the ground and therefore be 10:1 or lower? I don’t know, but it isn’t a valid argument. Neither is the argument that the gold:silver ratio should be around 16:1 because that’s what it averaged for hundreds of years prior to the last hundred years. So, what should it be?

Gold has the appearance of undergoing a correction from the early July swing high, and that makes it somewhat featureless, for lack of a better description. There are times one needs to simply be idle until greater clarity emerges. This seems to be one of those times,

The price of each metal is not going up. The measure of the number of fiats needed to buy the metals will grow ever more as each country’s fiat issuance becomes increasingly debased. That is when the power of holding gold and silver will be felt the most.

While the world gets bogged down in a financial quagmire, created solely by the globalists but to be suffered by the masses, those with gold and silver will fare best during the worst of what is to come - and the gold and silver markets are sending a clear message as outlined in the charts below.

There is an underlying belief by many that there is a balancing ratio between silver and gold that can, over the long-term, help in evaluating current market prices. Swings and trends in this ratio are one of the many indicators gold buyers and investors use to evaluate their market positions and the right time to buy or to sell.

The gold to silver ratio has been used for years to indicate buy and sell zones in both gold and silver. Here's why and what the current major high of 80:1 means for the future price of silver.