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 Replies: 7 / Views: 2,902 |
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Valued Member
United States
302 Posts |
I have been looking for a historical gold/silver ratio chart for a while. I found one shown below. Based on that chart with 36 years of data, I have noted what I think are the best times to buy and sell gold and silver.  |
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Bedrock of the Community
Australia
21786 Posts |
Fair theory, with what is depicted here.
Added to this you may consider:
When either or both fall substantially and suddenly, buy. At least you could feel the short term satisfaction of of a 'dead cat' bounce. Just HASTEN SLOWLY, to be wary of further falls.
Opposite applies for a sudden and substantial rise.
Question: What is the colloquial term for a sudden peak in prices?
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Pillar of the Community
1028 Posts |
Your notations on the right aren't exactly a groundbreaking idea. People have been looking at this ratio for as long as this historical chart has been collecting data.
If you look at charts that show subsequent corresponding rises and falls in PMs, you would also see that there is a lot more to it than just the gold/silver ratio.
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Valued Member
 United States
302 Posts |
I am well aware that there is a lot more to it than the ratio. However, if you only did this over the long term (I know, most people do not live long enough to do it fully), you would increase your stash at less cost than buying and selling outright. That is not saying that the stash would not drop in value, only that you would increase the actual ounces in your possession at a much lower average cost per ounce.
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Valued Member
United States
85 Posts |
Best time to buy: When it's low
Best time to sell: When it's higher than you bought it for
:P
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Pillar of the Community
1028 Posts |
Quote:
That is not saying that the stash would not drop in value, only that you would increase the actual ounces in your possession at a much lower average cost per ounce. Increase your supply at a lower average cost...compared to what? Compared to buying at random, probably. I don't think the ratio alone tells anybody much of anything and you would still frequently be buying PMs at a higher average cost than if you actually did a little more research. It is somewhat unfair to look at things in retrospect, but the ratio/combined with your recommendations on the right would have been giving the wrong advice for most of the last 10 years. It would have resulted in lower profits and also not a competitive acquisition of supply. |
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Pillar of the Community
United States
2764 Posts |
Thank you mmerlin for creating a great subject.
hesgut, I am trying to understand your post, however, the idea seemed to be very vague. Would you like to give some example or elaborate a little more. I am sure others like me would really appreciate counter point such as your.
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Pillar of the Community
United States
535 Posts |
emh: I have to disagree with you on this one.
Best time to sell: when it is high.
Best time to buy: when it is lower than what you are going to sell it for later.
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Replies: 7 / Views: 2,902 |
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Posted 10/25/2011 03:39 am
