Gold/Silver Ratio - 77. Normal?

77 is high, no doubt about that. It's been higher in the past and it is not a natural progression upward aka consumer price inflation. Of late gold has performed more as a precious metal while silver has performed like an industrial metal IMO. The 10 year GSR chart, available at Kitco, shows a high ~84 and a low of ~32 with an average just over 60. This would indicate that silver is undervalued in most interpretations. Thing is there are so many non-market factors in play these days there is no way to tell anything with certainty.

I will say that in the short run it seems silver has more upside potential than gold. I personally sold all my gold in 2012-2014 and still retain my silver so you know what I think. I am not a charting expert or any kind of expert for that matter so YMMV.

Thanks BH1964.

I was getting ready to start stacking again then I saw how high the ratio was. To go back to the "normal" range, gold would have to either trend down faster than silver, silver would have to trend up faster than gold. This may be one of the reasons for the VERY high premiums for silver

Hope silver is $49 oz by end of year .

Here's a monkey wrench for the conversation: Are you discussing gold and silver pricing ratios based on paper or physical? There's a real difference there (literally real).

The paper price is so heavily manipulated, it almost seems impossible to really price out silver and gold these days on a ratio or anything based on historical numbers.

Speaking of silver shortage - it can happen. There's enough billionaires in the world to do so since people still peg paper silver to physical silver.

Thanks for the compliment, Vesper. I remember reading about the percentage premiums for 90% coins going sky high compared to anything else when economic conditions get rough. As in up like 1000+ percent.

But either way, even those numbers you pulled on physical are still somewhat based upon the misunderstanding in how silver price is not tied to actual real life physical silver supply.

Fiat currency dependence has really messed up the general public belief on value.

I remember when the gold/silver ratio was about 16:1, I was 17 years old and the year was 1980.

I have read about the ratio every once in a while. Best argument I've heard to track the ratio is not necessarily to get best prices (buy low sell high kind of thing), but more to increase the quantity of precious metals over time regardless of price.

Example: buy silver now at around 70... assuming this is a high end of historical trend AND the trend will eventually revert to its mean... you then sell/exchange silver for gold... repeat process and exchange gold for silver when ratio goes up again... repeat over and over to increase ozs, again, regardless of price.

This, to me, seems like a long position game and needs decades, discipline and patience to probably to play out in one's favor.

Has anyone ever done this, with success or failer? I'm young and have time for the long play and it always seems intriguing. I mostly collect silver coins that have too high a premium for this, but I do have a little generic silver for portfolio diversification... and will get more. Just wondering if maybe with the long position I should consider not just price, but also timing in regards to the ratio.

Thoughts!?!?