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 Replies: 23 / Views: 3,330 |
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Pillar of the Community
United States
1450 Posts |
It looks like the gold/silver ratio is 54.7/1. It may be time to let loose of a couple ounces of gold to beef up the silver hoard. What do you think based on what has happened the last week or so?
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Pillar of the Community
United States
3670 Posts |
I just call this fact out earlier today, even though your math is more precise as I rounded up to 55 to 1....
I like you Hock thing trading into silver is a good plan, while others would think gold an platinum an why not, good plan as well....
I have a .24187 proof gold coin an the quarter oz. platinum MS-70 NGC first strike early release 2007 key date (mouthful), I might consider trading for the right silver bar with any board members (TBK), lol. So open to offers, lets hear what ya got....
Curious just what the board would think the above would be worth, as I figured at least a nice old pour 25 oz. bar, which seems about right to me....
Edited by Silverhawk74
05/11/2012 9:16 pm
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Pillar of the Community
United States
1454 Posts |
Hawk,
I'm beginning to think you have a problem. Now tell me, when was the last time you went a full day without thinking about old pour silver bars?
Oh, and yep, silver's the smarter investment right now, IMO.
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Pillar of the Community
United States
3670 Posts |
He he, I can't ever make up my mind, but I just feel you can't go wrong with them they are pretty popular....
Easy to store an stack, as well as no worry about prints an handling like a piece of China being that their such rough old school bars, raw metal an all....
Then you toss in the old company's an odd weights and state stamps which are really cool like Nebraska or Nevada or even bars poured in state shaped molds, just adds to the bars mystique an collectable factor, esp when they have low or unknown mintage numbers....
Edited by Silverhawk74
05/11/2012 9:39 pm
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Valued Member
United States
196 Posts |
haha traevin I have to agree with hawk, I love the look of our pour bars, but there premiums are just a little too steep for me still
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Pillar of the Community
United States
2269 Posts |
I also daydream about owning a nice 10 ounce pour bar. I would love to actually find one with a low premium, that's why I daydream about it.
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Bedrock of the Community
Australia
21788 Posts |
The silver to gold ratio is reasonably close ot an historical average right now, but it has been as low as 20:1 in the 1980's, to as high as 100:1
The low ratio is an aberration, when the Hunt Brothers tried to corner the silver market.
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Pillar of the Community
1283 Posts |
I would probably keep the gold. Silver has quite a bit of room to move down IMO. 55 oz looks like a ton compared to one gold eagle I promise you that
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Pillar of the Community
United States
4008 Posts |
The G / S ratio is one of the few stumbling blocks in my desire to buy some gold now. Yes, this ratio has been higher and it has been lower but it still seems on the high side to me. If it was in the 30s instead of the 50s, I would have no problem buying some gold. As it is, silver really does look like a more effective purchase and hold.
It would be interesting to hear some discussion on what it would take to shift the G / S ratio in a meaningful way. What causes it to change? Why does it go up vs. down? Is this controlled primarily by supply? If so, then mine flooding or miner strikes could shift the ratio as could governments trying to set up a new currency that was partly backed by silver and gold. I am pretty sure that if silver and gold were used to back a new currency, government would find it irresistible to not set the G / S ratio to a specific number. If they did, it could very well be close to the production ratio of about 9.5 to 1 in terms of silver vs. gold ounces produced.
Thoughts? Comments? Rants? lol
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Pillar of the Community
United States
1454 Posts |
Historically, it 15:1. But what has changed to get the ratio so out of whack? That, I'd love to know.
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Pillar of the Community
 United States
1450 Posts |
I think that 15:1 ratio we see thrown around so much has more to do with amounts mined rather than price. I doubt we will see the ratio go much below 35:1 anytime soon. I think the drop in the ratio will be a result of silver prices surging more than gold dropping. That is just my gut based on all I have read.
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Pillar of the Community
United States
1454 Posts |
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Pillar of the Community
United States
5862 Posts |
Yeah, when was there ever a 15:1 ratio? My math is not that great, but when I was growing up I seem to remember silver being around $4 and gold being around $300 for the longest time. Isn't that actually a 75:1 ratio?
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Pillar of the Community
Australia
7096 Posts |
Quote:
Yeah, when was there ever a 15:1 ratio? My math is not that great, but when I was growing up I seem to remember silver being around $4 and gold being around $300 for the longest time. Isn't that actually a 75:1 ratio?
I can remember them days as well, I can also recall that people still had the old wireless with valves in them. We even had silver coinage in our pockets and thought nothing of it. Since then there has been an explosion of electronic devices solar power and many other industrial uses of silver. Silver is now not only a PM but is an essential metal in industry and as such the demand for golds little sister is growing all the time. Gold has some industrial use but not to the same extent that silver does and IMHO the gold silver ratio is reflecting this higher demand for silver industrially and will continue to do so until someone finds a substitute for it. |
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Pillar of the Community
Canada
1723 Posts |
15 to 1 ratios were a long time ago. People are kinda foolish to think that those kind of ratios will ever return in my opinion. The way the world runs today vs then is so different. I can see a 30 to 1 ratio or even 25 but not 15. Though the 15 to 1 radio exists based on the amount of mine able silver there is in the ground so you cant argue the thought process or the want for those ratios to reappear. I think silver is definitely undervalued and has more upside for sure and because of that I'm a silver bug, but I did just pick up my first gold coin by trading in silver. If I were you, I would hold my gold and just accumulate more silver. Just my thoughts. Cheers. Let us know what you decided.
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Pillar of the Community
United States
808 Posts |
Quote:
It would be interesting to hear some discussion on what it would take to shift the G / S ratio in a meaningful way. What causes it to change? Why does it go up vs. down? Is this controlled primarily by supply? I just read an interesting article over on miningweekly.com by Henry Lazenby discussing the discovery of "mega" gold deposits in Mexico that very well may change the economics of modern gold production. Currently, the average cost world wide to produce one troy ounce of gold is $649.00 USD. However, if Mexico can exploit its new-found deposits (projected to come online in 2017), it's abundance of cheap yet highly skilled mining labor could bring the production cost per ounce of gold down to an amazing $325.00 USD! In some ways, it's reasonable to assume the lowest sustainable price for gold can be no lower than it's current production cost. Thus, high average gold production costs create a high "minimum" gold price. Of course, the opposite is true if costs come down. While Mexico faces considerable political risk and potentially some interference from the ongoing drug war, it's not unreasonable that Mexico may influence an era of more affordable wholesale gold in the near future. This may very well impact the gold/silver ratio, but it's anyone's guess how this will translate to the retail PM market. Thoughts? Edited by coinwatch
05/13/2012 11:17 pm
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Replies: 23 / Views: 3,330 |
Posted 05/11/2012 9:27 pm
