At the point of buying gold by the gram, you're betting off buying silver by the ounce.
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- Thread starter roscoe1911
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Nope. Nope nope nope nope. No.
Any time you're asking "Should I sell metal X to buy metal Y?", which is a good thing to ask as ratio-trading is a great way to multiply your precious metals, you should compare the current ratios between the different metals to the historical averages. The average gold to silver ratio from 1900 to 2000 was about 47 ounces of silver to 1 ounce of gold. From 2000 to today is about 64ish ounces of silver to 1 ounce of gold. Prior to the 20th century, and for many centuries before that, the ratio was somewhere around 16 ounces of silver to 1 once of gold. It was at this 16:1 ratio for a long time because that's the ratio it was mined from the ground.
The current ratio of how much silver is mined compared to gold is about 8 ounces of silver to 1 ounce of gold. Also, silver is the second most used and useful commodity in the world immediately behind oil. Yet another thing to keep in mind is that because of this industrial demand combined with how little is mined annually, above ground silver has actually been in a deficit each year for decades now (more silver is 'consumed' in industry than is mined) so the above ground supply of silver has been becoming smaller and smaller each year. There was more above ground, usable silver back in the 1300s than there is today. Because of its massive, irreplaceable industrial use, low mining output, and miniscule supply, the silver to gold ratio would be, in a truly free market, at most 8 silver to 1 gold if not even lower.
Right now the ratio is almost 66 silver to 1 gold. In a free market it would be 8 silver to 1 gold if not lower. Me personally, I'm not selling any of my silver to buy gold.
Right. I'd want a position in both metals. It's just that I'd currently want my silver position to be much larger than my gold position. Also consider platinum, as the ratios also heavily favor platinum at this time.
Platinum is good if industry is striving. But I don’t see the advantage for rebuilding as it would be hard to trade.
If the economy doesn't collapse then industry will continue on and therefore platinum has massive upside potential; more than gold. If the economy does collapse then platinum has all of the same physical properties which make gold and silver money so the free market, as after a collapse we would then hopefully actually find ourselves with a free market unlike the past 100+ years, would therefore determine that platinum is as much money as gold and silver is. With the significantly lower supply, it would therefore be worth much more than gold so it still has greater upside potential than gold does.
Could be right.
I’m just thinking that if we have a collapse, then it would be awhile before it wouldn’t be a hassle to find someone that wanted it.
But then again it’s more of a long game anyway.
what he said!!!!!!!!
buy it, and shut up!!!
