PMs: Gold vs. Silver

[Smaulgld]

In a recent blog post “Twelve Ways Silver is Different Than Gold” we noted silver’s lower price relative to gold has been based on its relative abundance to gold. The traditional gold/silver ratio is 16:1, meaning historically it took sixteen ounces of silver to buy one ounce of gold or one ounce of gold to buy sixteen ounces of silver.


Over the last ten years, however, the ratio has ranged from 31.68:1 to 83.73:1. The current gold/silver ratio is about 60:1.

Based on current buying patterns, this ratio may be set to change.


http://smaulgld.com/the-gold-silver-ratio/

 

[Zippyjuan]

Curious where the "traditional silver/gold ratio is 16:1" comes from. It hasn't been that for over 100 years. No reaon it should "revert" to those levels.

http://www.gold-eagle.com/article/goldsilver-ratio-strategy-case-silver

 

[specsaregood]

Curious where the "traditional silver/gold ratio is 16:1" comes from. It hasn't been that for over 100 years.

http://en.wikipedia.org/wiki/Coinage_Act_of_1834
Its not a freemarket ratio, its a govt mandated ratio and thus meaningless.

 

[oyarde]

In a recent blog post “Twelve Ways Silver is Different Than Gold” we noted silver’s lower price relative to gold has been based on its relative abundance to gold. The traditional gold/silver ratio is 16:1, meaning historically it took sixteen ounces of silver to buy one ounce of gold or one ounce of gold to buy sixteen ounces of silver.


Over the last ten years, however, the ratio has ranged from 31.68:1 to 83.73:1. The current gold/silver ratio is about 60:1.

Based on current buying patterns, this ratio may be set to change.


http://smaulgld.com/the-gold-silver-ratio/

Well , right now $23.84 & 1388.84 , how do you think the ratio may change ?

 

[Seraphim]

No reason...save for real world supply and demand fundamentals...

You do know that available real world physical supplies of silver are are at historic lows. Let alone in relation to per capita human consumption. Let alone in relation to per capita demand per ounce of gold.

Supply/demand fundaments don't matter when The Fed is at The Helm...right?

The silver naysayers are in for a shock. A shock that is hilarious to me.

Curious where the "traditional silver/gold ratio is 16:1" comes from. It hasn't been that for over 100 years. No reaon it should "revert" to those levels.

http://www.gold-eagle.com/article/goldsilver-ratio-strategy-case-silver

 

[Danke]

 

[ILUVRP]

from 321gold today .

http://goldsilverworlds.com/investing/ted-butler-i-own-silver-because-of-coming-silver-shortage/

 

[Jordan]

If rates keep going up, silver's going to lose its solar demand. Not good for silver owners, given photovoltaic demand chews up millions of ounces each year with near-exponential growth.

 

[Smaulgld]

Update :The Silver/Gold Sales Ratio increased in August to 402 to 1!



http://smaulgld.com/the-gold-silver-ratio-vs-the-gold-silver-sales-ratio/

 

[Smaulgld]

"If rates keep going up, silver's going to lose its solar demand. Not good for silver owners, given photovoltaic demand chews up millions of ounces each year with near-exponential growth."
True but gold lost its industrial demand and rose higher on investment/monetary demand

 

[Smaulgld]

"Curious where the "traditional silver/gold ratio is 16:1" comes from. It hasn't been that for over 100 years. No reaon it should "revert" to those levels."

Agree-that is the historic average-in the last ten years it has been much higher. The point of the blog post is that demand for physical silver from investors is increasing at a rapid rate vs. gold

 

[Smaulgld]

Update :The Silver/Gold Sales Ratio increased in August to 402 to 1!



http://smaulgld.com/the-gold-silver-ratio-vs-the-gold-silver-sales-ratio/

In September month to date the silver to gold sales ratio is 675 to 1.

 

[pmbug]

Update :The Silver/Gold Sales Ratio increased in August to 402 to 1!

I think your ratio would be "more honest" if you compared total ounces of US Mint silver vs. gold. Silver eagles are only sold in 1 ozt. coins, but the US Mint also sells 5 ozt. America the Beautiful coins. The US Mint also sells Gold Eagles in several weights. If you are presenting a ratio that purports to show market demand for silver vs. gold, you should be including all the ounces sold, not just sales of 1 ozt coins. $.02

 

[Arklatex]

There has been a lot of silver discovered in the New World as time has gone by, Mexico is now the #1 producer on Earth, surpassing China, Peru is # 3

Gold is king. There is sooo much more silver produced compared to Gold. I think there may even be a conspiracy to get new PM investors to concentrate on Silver so they don't drive the price of Gold up. AU has mystical properties not discussed in academia =) Think about this word - Aura

 

[Arklatex]

There has been a lot of silver discovered in the New World as time has gone by, Mexico is now the #1 producer on Earth, surpassing China, Peru is # 3

Gold is king. There is sooo much more silver produced compared to Gold. I think there may even be a conspiracy to get new PM investors to concentrate on Silver so they don't drive the price of Gold up. AU has mystical properties not discussed in academia =) Think about this word - Aura

 

[Arklatex]

There has been a lot of silver discovered in the New World as time has gone by, Mexico is now the #1 producer on Earth, surpassing China, Peru is # 3

Gold is king. There is sooo much more silver produced compared to Gold. I think there may even be a conspiracy to get new PM investors to concentrate on Silver so they don't drive the price of Gold up. AU has mystical properties not discussed in academia =) Think about this word - Aura

 

[oyarde]

Today may be a good day to buy .

 

[Zippyjuan]

There has been a lot of silver discovered in the New World as time has gone by, Mexico is now the #1 producer on Earth, surpassing China, Peru is # 3

Gold is king. There is sooo much more silver produced compared to Gold. I think there may even be a conspiracy to get new PM investors to concentrate on Silver so they don't drive the price of Gold up. AU has mystical properties not discussed in academia =) Think about this word - Aura

The important point being that they both have their own supply and demand factors determining their price. There is no "natural ratio" in price terms.

 

[flaversaver]

Bring this thread back up. Silver and the PMs got pounded this week. As did my portfolio. Can someone explain to me how we can continue to print money and raise the debt limit, yet gold and silver are not blowing up?

 

[pmbug]

Traders are chasing yield elsewhere.

Savers/stackers are buying physical, which doesn't impact spot prices.