). I would say for me a good safe-side ratio is between 10-20 oz Ag / 1 oz Au. After the market movement today the price ratio is 53:1 silver:gold, but as far as I know silver is widely considered to be more volatile than gold.
Posted 09/24/2011 12:01 am
To answer this question, it is necessary to look at the graph histories of gold and silver reasonably often, and over a period of years. these graphs are freely available on the Net. It also may be worth keeping the tabs on the gold / silver price ratio and finding a chart on this, or making and keeping a graph for yourself, and also keeping a tracking graph of all three, of the six month and 2 year moving averages at one month intervals.
It may be also be possile to find 200 day moving average graphs on the Net. Such a graph is the nearest thing to a six month moving average, but are maintained on a daily basis.
From these information graphs, it becomes more rational on how you should change your position in relation to PM's. A simple calculator is all you need to keep a moving average graph, and it is easiest from a practical point of view, to update these graphs on a monthly basis.
It may be also be possile to find 200 day moving average graphs on the Net. Such a graph is the nearest thing to a six month moving average, but are maintained on a daily basis.
From these information graphs, it becomes more rational on how you should change your position in relation to PM's. A simple calculator is all you need to keep a moving average graph, and it is easiest from a practical point of view, to update these graphs on a monthly basis.
