This page has been archived and commenting is disabled.
Guest Post: The Gold-Silver Ratio – Another Look
Submitted by Andrey Dashkov of Casey Research
The Gold-Silver Ratio – Another Look
The gold-silver ratio (GSR) measures how many ounces of silver one can purchase for an ounce of gold, on a certain date.
Reference
to the ratio has a long history. One of the first mentions was that
upon the death of Alexander the Great, the ratio was 12.5 to 1. During
the Roman Empire, the ratio was set at 12. By the late 19th century, the
ratio had risen to 15.
Interestingly, these historical ratios
roughly reflect geologists’ estimates that silver is 17 times more
abundant than gold in the earth’s crust. This gives many investors a
reason to believe that 17 is the natural balance between these elements,
and that eventually the GSR will return to it.
Monitoring the GSR
is quite popular among gold and silver investors. It seems that
whenever it makes a big move, many start drawing conclusions about the
direction of the prices of its underlying metals.
Here at Casey
Research, we stick to the dictum that the GSR “suggests a lot but proves
nothing.” Indeed, the GSR is determined by the price action of gold and
silver; the price action of gold and silver is not determined by the
GSR. Rather, each metal’s price is influenced by various fundamental
factors. What complicates any analysis of interactions between gold and
silver prices is that the two metals have different markets, each with
peculiar supply and demand structures.
Briefly reviewed, the gold
market is characterized by a large above-ground supply as the vast
majority of gold ever mined still exists in refined form, and annual
mine supply represents only a small fraction of that volume. Demand is
mostly for jewelry and investment. Gold is not widely used for
industrial purposes.
Silver demand, by contrast, is mainly for
industrial fabrication of things like electronics and batteries. The
metal is consumed during the process and removed from above-ground
stocks. The other major areas of demand are jewelry, investment,
photography, coins and household silver, in that order. Supply comes
mainly from mining and scrap recycling.
From this picture comes
one conclusion: over time, supply and demand for the two metals has been
fluctuating in response to industrial and technological advancements,
shifts in monetary systems and market turbulence. Today, as investment
and jewelry are the primary sources of gold demand and most of the
silver goes into industrial and related applications, it is no surprise
that the gold-silver ratio is different than the historical average of
17. The following chart shows how the ratio has fluctuated since 1968.
The GSR was extremely volatile over the past five decades and averaged
53.5 from 1968 to April 2011; during the last ten years (since April 2,
2001), the ratio averaged 61.8.
The ratio has been falling for
several months, however, as shown on the chart above.
Counterintuitively, however, rumors that a low GSR signals undervalued
silver started spreading. We say counterintuitively here since it is
unclear why a falling GSR should signal undervaluation after silver
gained over 80% within a year. Appeals to the mega-long-term GSR of 17
alone do not seem to provide enough basis to think that silver will
continue to soar indefinitely.
As of April 1, the GSR stands at
37.7. We, however, do not think that it is going to fall to 20 or 15
from this point: history shows that high volatility is the ratio’s
essence. After a plunge, there usually follows a rapid surge. That
happened in 1980 when gold reached its inflation-adjusted peak, and in
1987 and 1997. We don’t know how steep the current plunge in the ratio
will be, of course, but using history as a guide, we do not expect the
ratio to continue its decline for much longer.
Uncertainty about
the economic recovery in the Western world and the growth of developing
countries can result in slowing industrial output and hence falling
demand for silver that would hinder the price. These conditions also
create a favorable environment for gold driven by safe-haven demand. In
such circumstances, the ratio may climb.
History shows that the
GSR tends to rise significantly during a recession and create an interim
peak on the way. See the chart below.
We
believe that the measures taken by the current administration to battle
the recession are largely counterproductive, temporary, and will be
unable to prevent the onset of another major economic decline. It is
difficult to judge when the turmoil might start, but the odds of it
happening soon get higher as the levels of government debt increase and
the dollar is debased. When push comes to shove, the GSR can react
quickly and create a fluctuation of an unpredictable magnitude.
In
times of recession, as we discussed above, gold and silver behave in a
quite different manner. Have a look at the following charts.
Note
that it is not quite statistically sound to plot a ratio against one of
its components, but for the purpose of illustration we find it quite
useful.
As you can see, in 1980 gold and silver both peaked on a
historically low GSR. This may imply that a low ratio can take place not
only when silver appreciates faster than gold (as it did in 2010 and so
far in 2011), but also when fundamental and speculative conditions
influence both metals. Of course, the 1980 silver peak happened while
the infamous Hunt brothers were massively accumulating the metal.
Conventional
opinion attributes silver’s rise to the Hunts, but we are skeptical. It
cannot be determined to what degree the metal would have otherwise
risen absent the Hunts in the market. In any case, attempts to influence
markets are nothing new – today, major investment banks are accused of
manipulating the silver market by holding huge short positions that
cause artificial price suppression.
Returning to the charts and
how gold and silver behaved in the last recession, we can see that
silver moved counter to the GSR while gold moved in a mixed, sideways
pattern. Because of this, many see a lot of upside potential for silver,
but we should not forget that silver is the denominator in the ratio.
So absent strong fluctuations in gold – and gold was on an ascent since
the beginning of 2009 – the GSR would to some extent simply mirror
silver price movements.
The silver price was also influenced by
hopes that the global economy is reviving and that industrial demand is
going to last. In 2010, silver gained more than 80% while gold added
less than 30%. The difference resulted in the GSR falling throughout
2010. Will that performance be repeated? We cannot say. Speculators
should remember that the GSR is merely a ratio of two prices often
driven by different forces. It has limited, if any, predictive power.
With
that in mind, we will finish by juxtaposing the ratio against the
Toronto Venture Exchange (TSX-V) index, and it reveals an interesting
picture: it seems that the TSX-V has been negatively correlated with the
ratio for the last ten years. Again, statistically it’s arguable if a
ratio should be compared to an index, but looking at various
combinations of time series, and the stunning correlation, we couldn’t
help ourselves.
It
would be easy to conclude that there is a strong – and negative –
correlation between the index and the ratio. However, this correlation
does not provide any sort of guidance on whether the metals themselves
look expensive or not, or where mining stocks are headed. An interesting
image, that’s all it is.
Conclusion
The
gold-silver ratio attracts a lot of attention nowadays, but it is not a
reliable tool in an investor’s toolbox, and we don’t think it can
predict future price movements. But the reality is that nothing does.
Those who look at GSR charts, including ours above, should not forget to
analyze all the fundamentals behind the price movements of both gold
and silver. We advise you to be extremely cautious and not get caught in
the trap of believing that a single number or ratio, or a set of them,
can provide you with a crystal ball.
Identifying an opportunity
for future profit based on facts and a reasonable amount of risk is
another thing. This is what we do day in and day out – just not based on
the GSR.
»
- 23136 reads
- Printer-friendly version
- Send to friend
- advertisements -
Keep the joke-trolling fresh, huh? A PERL-script is as funny as you. You're giving humans a bad name.
JP Morgue Increases Physical Silver in New Vault 39% in 2 Days During Manipulative Take-Down!
http://silverdoctors.blogspot.com/2011/05/jp-morgue-increases-physical-s...
Very interesting, Keep digging.
Someone should post a chart of the gold & silver ratios to every paper fiat currency in history.
Guess what? The ratio is infinite, because every single paper fiat currency in world history has eventually gone to 0. As will the crap Dollar and crap Euro and crap Yen.
Physical is the way to keep your wealth.
Exactly. Also, there is a flaw in the argument. The assumption that jewlery and investment demand stays stagnant and/or secondary to industrial uses. There was a post earlier about chinese citizens and Indian citizens starting to buy silver for investment. There is also a growing base of citizens the world over looking at silver as a hedge.
IF there were to be a run towards the cheaper metal as an insurance policy en-masse, that MIGHT change the equation. The only reason why we're having this discussion is because of a probable currency event. That probability or eventuality, takes Casey's data off the table in the short-run
Someone with more experience please check something:
http://quotes.ino.com/chart/index.html?s=FOREX_XAUUSDO&v=s&t=f&a=0&w=1
Look at the 1-4 minute spike right at the close.... wtf was that? Or is this a charting error?
That happen's everyday. I have about 3 months of screen shots of this trend at the close of Comex every single day. It literaly trades straight across.
Thanks.
Serious question: The 17:1 ratio in the Earth's crust has been bandied about with abandon. Can anyone here corroborate that (i.e. a geologist)?
The reason I ask is that, some times, in non-scientific writing, "facts" get started with no basis in reality, and then lead to increasingly wrong extrapolations, such as conjecture about ancient civilizations, etc. I mean, the Romans had the composition of the Earth's crust figured out?
Seriously, anybody know?
Yes, this is more or less true, although the figure is dependant on estimates of elemental crustal abundances that are difficult to determine and not universally agreed upon.
According to my old general geology textbook, the general consensus figure for the crustal abundance of silver is around 0.070 ppm, and for gold it is more vague, but 0.003 ppm would be a good average figure. Dividing 70 ppb by 3 pbb gives roughly 23 times more silver than gold --- still in the same ballpark.
Note, however, that the ratio of silver to gold produced by mining annually has ranged in the last few decades from around 8 to 12, with a current figure of around 9 times more silver than gold.
Do you know the reason for the later? Has it to do with where mining happens?
It has to do with the chemistry of the individual elements --- they tend to vary in the degree to which they are concentrated into mineable deposits in the earth's crust. Silver, being much more chemically reactive than gold, tends to be more "bound up" and disseminated and dispersed in various minerals.
Some elements are actually not nearly as rare in the earth's crust as one might think, relative to others in absolute abundance --- scandium is much more common than tin or lead, for example, but just doesn't tend to concentrate into useful ore deposits like those other metals. Titanium is actually very common in the crust, but again is widely dispersed and not often found in useful concentrations, hence its relative rarity in industry and expense compared to say copper or lead, both of which are MUCH rarer than titanium.
Thank you. Great explanation :)
Looking at the trees, I missed the forest!
Thanks for bringing up the rest of the metals. I'm totally illiterate on those. Never heard of Scandium... and is much more common!?
I enjoy visiting QIT (Fer et Titane), incredible big nice place, many by-products, huge ore deposits and nature reservoir.
I am not a geologist.
Actually should be silver to gold ratio.
Anyhow:
http://en.wikipedia.org/wiki/Abundance_of_elements_in_Earth%27s_crust
Just division on the crustal abundance in ppm:
.075 / .004 = 18.750
Hope it helps.
The ratio has no value, because each metal has different use.
Silver use decreased a lot when Digital Photography displaced traditional film.
But Silver use increased a lot when a lot of digital gadgets were developed.
Also, it matters more the readily available commodity. Easy Gold has most been dugged up. Same as easy oil.
Silver will get there soon, and when it gets there, the ratio will not be the one you see now, neither the crust's ratio. It will be its usefulness (unless Silver as industrial use gets displaced).
I've been watching the PM markets for a long time.....one thing is certain: if gold goes up, so does silver. If gold goes down, so does silver. So if you expect a bright future for gold, then it should be obvious that silver will tag along; it always does. And since NOTHING has been fixed in the world's fiat currency system.....what should we logically expect to happen?
el sot-to
this ratio has been useful, i think, b/c it has been trending. from 80, a coupla years ago, to the low 30's, now low 40's.
on the trend from 80 to low 30's: buy silver/trade gold for silver; silver going up faster.
now, going down faster!
just splashing around? new trend? old trend coming back? flat? who cares?
i agree with: don't try to use this measure to predict price movements. it is a measure of relative price movements, especially when trending. even when correcting. reversing? LOL!
No need to have more the 5th grade reading level to understand that Central Banks are priting 24/7 in order to "liquify" the markets and in our case (thats the USA) to hold the dollar down to stimulate exports as Larry Summers expalined two years ago.
No need to look at ratios, technical this or that....just keep yoru eye on the printing....the Money Supply. These PMs will rise accordingly as they have been doing despite the temp dip sdue to massive temp intervention.
Long term, market forces cannot be stopped and PMs rising substantially will reflect that as peter Schiff, Ron Paul, and many others have explained. Even "ultrac onservative" pension funds are now loading up on PMs.
So yes, there will temp bumps along the way but the end game of a cheap dollar will not only stimulate us out of this depression, but also raise the value of PMs.
Andrey,
During the 20th century, 10 billion oz. of silver were dishoarded worldwide by governments as they 'demonitized' silver. This distorted the gold / silver ratio from a historical and (some argue) prospective norm.
Your graphs going to 1970 don't give pertinent context. You (assuming when you write 'we' you mean yourself) have to complete fundamental and wide ranging background research before you start on such an extensive article. It would have saved a lot of work.
Indeed ... and the narrative is also less than accurate. For example, the GSR in the early half of the 19th century was 15 then 16. It fell to as low as 7 during the Civil War, from whence it climbed steadily up to 35 by the last decade of the century.
Taking a longer term view and smoothing the plot with a short MA, it looks more to have hovered around 34 for the last 120 years -- except for upward excursions between 1929-1946 (where it peaked at 98 in 1939) and 1980-present (after Reagan started the rampant 'trickle down' spending; again peaking at 98 in 1991). On the MA plot, it has been steadily falling back towards 34 in the 20 years since 1991. But rearview mirrors don't show much of the road ahead....
We will hit $20 in Silver and $1000 in Gold.
And probably $75 or lower in oil... the whole commodity market is fucked.
That would indeed be the mother of all head-fakes, eh? If the silver market has actually been cornered (http://fofoa.blogspot.com/2011/05/costatas-silver-open-forum.html), then a panic selling spree to $20 is a possibility - the markets are mad like that sometimes..
I agree MathMan, but you forgot to put a K after $20K and $1,000K
Meth, How did slv hold up so well against the huge rise in DX today? The reason I'm asking, we jumped on 30 put's when the DX started it's rise and to tell you the truth, I was shocked the slv did not tank. We jumped out right when the DX was at 76.05 with our profits to get more physical but I have to say, slv bull's where in full force to hold up that well.
Any thoughts?
There seems to be a big riskoff trade going on in commodities and currencies (and equities too). De-risking across asset classes is pushing the dollar higher. Silver was one of the forthiest things out there, and led the charge, and has fallen the farthest. Short covering more than anything is running the show in Silver right now. I think it falls further after the shorts cover. The next leg down won't have nearly as many shorts to prop it up.
I have actually sold a lot of my silver puts as the easy money has been made, and the implied volatility has crept up. I think you can buy a lot of other vol in the commodity complex much cheaper right now (GOLD vol is really cheap). I'm guessing I'm not the only one doing this trade - and I'm sure that is part of the reason silver is experiencing a little dead cat bounce here.
Speaking of fucked, tell your Mom I said hi.
And yet physical gold and silver will hardly be affected, and neither will gasoline.
Because paper bullshit doesn't mean ANYTHING to real world supply and demand.
Sure Tmo, what ever you say....
You picked the wrong metal.
http://online.wsj.com/article/SB1000142405274870468190457631736410751561...
Yeah, because the Wall Street Journal knows ALL.
Moron.
The wall street journal. The best toilet paper in the publishing business.
Silvers gone. They used it all up in chemtrails. This troll trying to push people into gold is confirming it. They will raise gold massively probably to try to suck people into it. Since it's probably less valuable to them than silver. It'll be crazy before long.
Only hold silver if you're willing to use force.
Not dollars, it will be 20 Bancors per oz of AG and 1000 Bancors for an oz of AU. The dollar will be dead.
The only thing that's fucked around here are your predictions.
Why would you put so much effort into charting all of that from the most manipulated period silver has experienced (70s to 8 months ago)?¿ You talk about Rome then skip to 1968 when the original federal reserve note was on its last legs, to be replaced by the backed by paper version in 1971. Check out the chart in the link, from 1700 until the (re)invention of paper money via the second central bank of America and then federal reserve the GSR was stable...
http://www.goldmoney.com/gold-research/inflation-and-the-value-of-gold-explained.html
Makes sense right? When silver was money it could not be manipulated much, it takes a medium of exchange other then money (gold/silver) that can be manipulated (dollars) in order to get the GSR above say 20 or 25 maybe. Natural valuation for GSR is between 10 and 20 I think but of course nothing market related reaches only true valuation in a panic induced rally, expect GSR to hit maybe 5 in the next couple of years.
My point (if any) is that GSR has been solidly between 1:10 and 1:20 not for 10 or 100 years, not 1000 years but likely 10,000 years and it was not until the banking cartel's 3rd and most successful attempt at stealing the people's wealth (federal reserve) that they really mastered the art of GSR manipulation...
Let me try it one more time for those that don't like to think, cenbanks own gold so gold is more scarce relative to normal GSR at current - it is owned as an asset, this makes it "money". Normally silver is money too, which takes a gigantic chunk out of the supply but real money was abolished in 1913 then grassy knolls and vampire squids even sucked every last drop of silver out of your coins. Now that we the people have decided to reclaim silver as money (in the face of the end of the paper charade) the proportion of silver hoarded as money (as the cenbank leeches hoard gold) is going up and GSR down to natural levels (and beyond for a few days/hours).
You can bet against nature (and for a paper rally) if you want but we have pulled back the curtain for all to see, all it took was 2 or 3 semi famous cheerleaders to gather the peasants and buy a little silver to triple the "price" in less then a year. The end of paper money is coming, every ounce of money (gold/silver) we "buy" ensures it.
That first leg up etched into the minds of a generation of investors what they should panic buy in periods of (hyper¿)inflation scare. When the QE3 sails (or similar) silver will shatter minds/egos in a lightning second leg up to $150 or more if you don't believe it then good luck to you now and good luck to you when I sell you my double leveraged paper silver at $200/oz Ag.
i never liked that green curtain anyways, glad we tore it down.
like you said....
"we the people have decided to reclaim silver as money".
and the market has diverged from the triple p (ponzi paper price)!
amen !
Many countries have crashed their fiat. Just call RIP the old fiat and embrace the new-fiat. At my country, computers were still 8 bit integers and needed earlier reset. Now able to handle 64 bit float operations in a single clock will give more life (zeroes) to fiat.
The US will not end with the fiat crashing, nor the world. I'm a fiat-crash survivor.
Not to be picky, but that would be 1965.
does this guy really believe that people are entering a 150K future contract because of the silver ratio?
They see supply constraints and a massive short concentration and they are trading it. They have a great chance at winning too if the HFT's are accually used for liquidity and not price control. Any speculation in the PM's price really needs an honest apprasial of just how strong and incontrol the FED is of these markets through the bullion banks. Pretty strong, but losing control would be my guess.
At the point of control lose it won't be a ratio that stops the price of silver it will be panic buying of gold and silver that determine price and getting out will be guess at best
I wonder what excuses the guys over at KWN will proffer up for this unbelievable massacre....
Can't wait to hear the interviews.
They'll probably talk about silver's negative lease rates in London.
Check out the silver leasing rates plummeting and staying negative in London from April 20 and on as 36 million oz. were pulled from SLV's London silver custodian's over the next 15 days. That 36 million oz. should have flooded the market not created physical silver shortages in London - unless SLV had to lease the metal:
http://www.lbma.org.uk/pages/index.cfm?page_id=56&title=silver_forwards&show=2011
WTF I heard you say the other day that you sold and are looking to get back in (hope you already did on that 2nd run to $32)... I sold too... we are the traders we make the market, Eric King and Jim Rickards probably took profit too, that is why it is down. Also it is just a 2/3 fib retrace of the move from Jan to Apr. More then likey Eric and Jim rebought with me at $32 and will double up if it hits $29.
Besides all of that Ben Davies and trader Dan called the top pretty well and really if they lead to you buying you should be thanking them for bringing a great opportunity to your attention.
Obviously he tried to short it today.
He realized that he had to pay taxes on the huge gain he realized, so now he has to hope for lower prices to buy back in.
lol
moron.
Silver bein sold for 3630 for 100oz bar just yesterday...dotheads lined up and buying. No shortage, no massive premiums.
You're just a fool and a joke
Oh, how cute ---- RobotTroll is playing peek-a-boo again!
I think the message is to not be a slave to assumptions. A bit hard to analyse these things when manipulation of both gold and silver would corrupt any attempt at finding a true and free relationship between the two.
The assumptions that we operate on now are that manipulation of PMs will blow up in the cartel's faces, and that is because we believe Bernanke will remain irrational longer than the US can remain solvent. Well too late already.
This article should be dismissed....as bollocks
Just buy it. In the end, you won't care what you paid for it, and don't give a rat's ass what a centrally-controlled silver market tells you it's worth on any given day. Just own it. And own it now. I tell people every single day a day is coming soon where you won't be able to find it. Just buy it and own it and wait. And who really cares if it's Gold or Silver because our US Constitution is based on Bimetallism. Some anti-silver individuals (FOFOA) can't seem to get that through their noggins. Gold may be for Central Banks, but Silver is the people's money.
@ Math Man
ur the only guy here who openly spoke of his short position during silvers last few parabolic days up. Kudos!
Was it based on reading the charts? or just taking a stand against the 'ir-rational exuberance' ?
It was based on him being short for a lot longer than that.
6 days, 4 hours.
lol SOOOO transparent.
He has to talk to himself...
Perhaps he needs a session or two with CD.
and you sit at the bar everyday Cliff and talk shit. So what's it say that someone who signed up a mere 6 days ago took 33% of your life savings?
GSR during Weimar hyperinflation sat at 10:1 all the way through until late 1923 when people needed to get on the move or be prepared to and moved to the more value dense more easy to carry with you gold.
Also wonder if the popularity of silver to the masses (esp Asia) is due to its percieved relative cheapness and availability and due to its lower value density. Like collecting $10 notes instead of $1,000 dollar notes.
Many of the Chinese TV series (of which I am inundated) set in ancient times commonly have people paying for stuff with lumps of silver. So the modern myth of the Chinese people will be that silver is common money.
This by the way is something, which people who base all fundamentals on "supply", do not take into account enough. It's not just the amount of silver that matters - it's value also is affected by in how much demand it is.
Phrased another way: If we had transparent value discovery for PMs, during a fiat-based economy, then its value would be lower than in a PM-based economy, because the demand in a pm-based economy is higher than in a fiat-based economy.
That is just blatant misinformation. Here are the average GSRs for each year of the Weimar 'crisis':
Unfortunately the authors have zero perspective on history. They are measuring a blip in time and trying to draw a meaningful conclusion. Newsflash people, silver prices have been openly manipulated since at least LBJ's administration, when he flatly stated that silver and normal coinage would cocirculate, and that the treasury would flood the market with silver to keep price parity (see coinage act, address to congress). Dear fucking morons please start reading a tiny bit of history and then you won't look like a stupid fucking quant that picks the first damn dataset because it came with Excel 2011. History, it's relevant once again.
The gold silver ratio of 15-1 is a man made ratio-
Silver will in times of coinage use-compete with gold and float-much like the currencies of today do-as more silver came onto the market-it became worth less-the ratio would widen by a growing silver supply and the lower prices would force silver miners to scale back/shut down until the supply of silver was reduced-until a shortage was created and demand would again resume and the gold/silver ratio would narrow again-
Gold had a self correcting mechanisim on silver-
During bi-mataliam-silver was manully locked at 15-1 which gave silver a fixed price and what that did was made silver-by its abundance-more profitable to mine than gold--
When PM miners were gauranteed a fixed silver price-they went full scale into silver mining and flooded the world with silver-which caused a disaterous inflation and actually weakened gold-
Gold and silver-need no laws to govern each other-all they need is a free market to function in-
Hilarious, the dataset they use is from 1968, 3 years after the "coinage act" was signed into law, in which LBJ states that Treasury will manipulate silver prices so that non-silver coins will cocirculate (no one mentioned Gresham's Law to LBJ). Here is a segment of his address to congress: "Since the life of a silver coin is about 25 years, we expect our traditional silver coins to be with us in large numbers for a long, long time." "If anybody has any idea of hoarding our silver coins, let me say this. __Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin.__ There will be no profit in holding them out of circulation for the value of their silver content." Now who the fuck is Casey Research and how do I short them?
Easy fiat2zero.... there are actors in this game worth your degree of wrath much more than CR. That shouldn't stop you however from pointing out mistakes :)
I thought the same thing. Since 1968? I wasn't even born yet! How could anything important have happened before then?
tsx-v
whaddafuuuuck?
gsr to < 0. silver is a gift. use it wisely.
Test
Fail! now fight pussy!
The collapse of the ratio will be halted at 1/1 when gold can then be used as a substitute for the near extinct silver. Probably take about 30 years, so BTFD.
the gun is good and the penis is evil...........
http://www.dailymotion.com/video/x8z08s_the-gun-is-good-zardoz-in-10-min...
With physical metal it is easy to play the ratio with some success... when the ratio is high, buy some silver with your gold, when the ratio is low, buy some gold with your silver. An easy way to increase your stash over time. I traded most of my AG for AU when the ratio went down into the 30s. Looking for silver to bottom out this summer and then I'll BTFD bigtime.
This is a winning strategy.
"The GSR was extremely volatile over the past five decades and averaged 53.5 from 1968 to April 2011; during the last ten years (since April 2, 2001), the ratio averaged 61.8."
Seems a little odd the ratio was so high right around the time the silver was stolen from our coins.....
Do ya think maybe someone had an interest in keeping silver prices low....???
Yup, interested enough that they even passed Coinage Act in 1965.
if you dont own silver and live in America your a pussy
.
TREASURE BITCHEZ ! ! !
Got this in my email yesterday from a place I deal with. Someone is buying up the gold and silver. Sell some will you guys so I can get more!!!
SilverGoldBull.com Market Update
In an effort to keep our clients aware of current market conditions reflecting physical bullion we are putting out an update!
Silver Gold Bull has gone to great lengths to work with many suppliers which has kept our bullion supply uninterrupted, even when other dealers have been completely without inventory. However, with the "paper" prices of precious metals having been forced down to these levels the market is experiencing a tremendous amount of heavy buying from large investors, both private and institutional. The result has seen much of the remaining bullion removed from the market. This means that Government Mint (Canadian Maples, American Silver Eagles) delays are effecting our supply. The average wait time for products into us is now upwards of 3 weeks on NEW orders processed after today May 12, 2011. This means we are moving our delivery commitment to 4 weeks out. This is a safety mechanism to prevent frustrations of our clients waiting for delivery of the goods… we would rather be open and up front then to incur damage to our strong relationships that we have built with our customers.
As market developments continue, we will respond with our customers best interest in mind. Please remember to join us on Facebook and use the client feedback opportunity on our site. We look forward to our continued growth together
Got this in my email yesterday from a place I deal with. Someone is buying up the gold and silver. Sell some will you guys so I can get more!!!
SilverGoldBull.com Market Update
In an effort to keep our clients aware of current market conditions reflecting physical bullion we are putting out an update!
Silver Gold Bull has gone to great lengths to work with many suppliers which has kept our bullion supply uninterrupted, even when other dealers have been completely without inventory. However, with the "paper" prices of precious metals having been forced down to these levels the market is experiencing a tremendous amount of heavy buying from large investors, both private and institutional. The result has seen much of the remaining bullion removed from the market. This means that Government Mint (Canadian Maples, American Silver Eagles) delays are effecting our supply. The average wait time for products into us is now upwards of 3 weeks on NEW orders processed after today May 12, 2011. This means we are moving our delivery commitment to 4 weeks out. This is a safety mechanism to prevent frustrations of our clients waiting for delivery of the goods… we would rather be open and up front then to incur damage to our strong relationships that we have built with our customers.
As market developments continue, we will respond with our customers best interest in mind. Please remember to join us on Facebook and use the client feedback opportunity on our site. We look forward to our continued growth together
Sorry about the double post... itchy trigger finger.
One idea not mentioned is the ratio is driven down by the potential hard money frontier rapidly approaching.
The probability that natural forces wash out paper is immense this go-round. Last time there was a place for paper to go, into higher interest rates and debt (1980). That door is politically ugly.
Gold and silver are NOT money.
http://scranton.craigslist.org/clt/2378695011.html
There is no fucking silver. Spraying silver iodine in the atmosphere for 50 years. They demonetised silver in 1964. When JFK tried to remonetise it they killed him.
The silver is ALL gone. It only took a few months of citzens going nuts on silver to put it in the dirt. Photography use of silver iodide was probably faked for years and people probably busted their nuts getting polaroid out the door.
They sprayed all your damn silver all over the place. Ratio is probably 1:1
http://www.youtube.com/watch?v=8M1MsWqxkX4
Can you cripple that and run it by again Heph? :) No comprende....
Well look at the timeline. US demonitized silver in 1964. Kennedy shot for trying to monetize silver again through congress in 1967. The corporations were super interested in getting instant polaroid film out.
Ok polaroid was pumping these things out in 1948. This is weird the more I look at this. Polaroid kept coming up with massive ad campaigns to keep people "choosing" instant film. Big ad dollars during the hunt brothers.
http://www.youtube.com/watch?v=M5BA9rrrcrs&feature=player_embedded
Someone is using a shit load of silver for something and not telling us what. Either the goverment wanted it for archival quality film usage or they've been dumping silver iodide in the air for years for purely rain making or using it for it's rf scattering bouncing properties. I smell a cat hiding it's catshit again. That's about as much as I can cripple that right now. If they were trying to corner it for solar tabbing industry and things got too hairy to create that busy work I don't know. But something is being hidden.
The silver run up just brought too many pants pissers. If it got that reaction there's something bad going down and it's not just hiding silver manipulation or currency manipulation or JP Morgan worrying about it's shorts. Nobody comes in here and walks this fucking gauntlet of abuse we've been handing out for "personal or philosophical or i'm only here to help" reasons. Too many cunty mccunts being mouthy and too many douchey mcdouches being violenting threatening.
GOLD and SILVER daily and weekly charts are now bearish and further downside expected.
Silver chart posted April 28 warning what was ahead:
http://stockmarket618.wordpress.com/2011/04/27/thurs-april-28
Be careful folks.