Warning: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in ..../includes/class_bbcode.php on line 2958

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19
History Says You Have 27 Days to Buy Silver Before It Rises - Jeff Clark
Results 1 to 2 of 2

Thread: History Says You Have 27 Days to Buy Silver Before It Rises - Jeff Clark

  1. #1
    Join Date
    May 2007
    Location
    Atlanta
    Posts
    9,634

    Default History Says You Have 27 Days to Buy Silver Before It Rises - Jeff Clark

    Mike Maloney revealed that he recently made a large purchase of silver because of how undervalued it is. And he bought silver instead of gold because of how high the gold/silver ratio is.If you want to mimic Mike’s purchase of silver while it’s still undervalued, history says you only have 27 days to do so.
    As many of you know, the gold/silver ratio (the price of gold divided by the price of silver) has touched 80 a number of times over the past 25 years. And it’s never stayed there long. History shows this is the level at which silver is grossly undervalued compared to gold. Sooner or later the ratio falls to account for the large discrepancy between their prices.
    Here’s an updated view of the gold/silver ratio since 1995, along with silver’s gains after the ratio reversed from 80.


    You can see how much silver has outperformed gold when the ratio falls. And that some of those gains have been big—two of them were measured in triple digits.

    You can also see that after dipping below 70 a couple times over the past two years, the ratio has returned to the 80 level (80.4 as of March 5). This pattern is similar to what it did in 1996. And in spite of a ravaging bear market in precious metals at that time, silver gained 36% over the next 14 months.

    http://silverseek.com/commentary/his...it-rises-17135
    I'm a proud member of Eggshellman's Liar, Shill, and bully club and a new member of the Super Jew Defense League!!!

  2. #2
    Join Date
    May 2007
    Location
    Atlanta
    Posts
    9,634

    Default

    He has a valid point if your going to play the paper game and swap back and forth between Gold and Silver and you can call the highs and lows at just the right time.

    But the Gold and Silver ratio has nothing to do with the value of Silver over time as buy and hold investors.

    The above scenario from 1996 for 14 months was a nice price spike for Silver from a low in December of 1996 of around $4.70 to a peak of $7.80 for one day in February of 1998.

    But it really didn't do anything for Silver until February when it jumped from $6.20 to $7.80 in four trading days and then was back down to the mid in the $5 range again by May and back to the original mid $4 rage starting point by September of 1998.

    So unless you are buying and selling on the highs and lows, the above Gold to Silver ratio doesn't mean a hill of beans.

    Also, unless you are trading Paper Gold for Paper Silver, you are not getting 80 ounces of Silver for 1 ounce of Gold.

    Many investors like to stick with Government rounds making these swaps very costly versus doing it with Generic Silver products.

    At today's ratio of 80 to 1, your typical ounce of Gold will only purchase approximately 70 or fewer ASE's versus around 78 new "cheap" generic rounds.

    Trading Gold and Silver on the paper market like at an ETF would only cost you a few dollars and you would have your 80 to 1 ratio.

    The real point to this is, unless your are playing the Gold to Silver ratio and not the price of either and on the paper market where you can make your lowest cost trades and in a heart beat, it can be a costly move and unwise if you get caught on the wrong side if you need to sell.

    If you have no intention of swapping your products back and forth, then saying the ratio is at one of it's all time highs and a great time to buy as the ratio "should be going back down sometime in the future. The problem is, that ratio has nothing to do with the actual price of either product, just the difference in price between the two. There is nothing stating the ratio can not drop along with our spot price.

    But don't look at what happened back in 1996 - 1998, look what has happened over the past three + years and you can see it's been at the 80+ range twice and only barely below 70 for a few months during this period.

    If you want to play the ratio, then play it, but don't do it because you think it's a can't miss way to increase investment opportunity, the first thing you will do is just invest more money by following his advice by adding more Silver.

    If your want to add more Silver then buy it when you think the time is right, not because the dealers are desperate for sales of any kind for any reason they can pitch.

    Dealers like this because they are making money, they are not swapping Gold for Silver they are buying back one product in their favor and selling another for a premium that is also in their favor.
    I'm a proud member of Eggshellman's Liar, Shill, and bully club and a new member of the Super Jew Defense League!!!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •