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Silver to Gold Ratio - Gary Christenson
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    Default Silver to Gold Ratio - Gary Christenson

    Silver prices move farther and faster than gold prices, both up and down. When long term rallies begin silver often lags gold as in early 2018. The current gold to silver ratio at eighty to one is high. Fifty-nine to one has been the average for 40 years. Prior to 1913 the average was about 15 to one.

    An eighty to one gold to silver ratio shows prices for gold and silver are too low. At silver price peaks the ratio will drop to thirty or even fifteen to one.

    The silver to gold ratio (inverse of the gold to silver ratio) is a good indicator of silver price lows. Examine the following graph. The ratio sits at a long-term low in early 2018. The four other ratio lows in the past 30 years have been good times to buy silver.




    Silver prices bottomed in late 2015 and have built a base since then. A reverse “head-and-shoulders” pattern indicates a long-term bottom.


    CONCLUSIONS:

    Dollars are devalued every year. The late 2015 low in devalued dollars is similar to the multi-decade low at $4.01 in 2001.

    Silver prices are low in nominal terms and compared to gold. Silver prices are over four times higher than their long-term 2001 low at $4.01 and the ratio low in May 2003, but so are national debt, the DOW, NASDAQ and many consumer prices.

    Debt based fiat currencies are printed in excess. Prices for silver, gold, the DOW, food, and gasoline rise when measured in devalued currency units.

    National debt doubles every eight to nine years. President Trump likes lower taxes, higher debt, more wars and a weaker dollar. Debt will accelerate higher and prices for silver, gold, food and energy will rise much higher as the dollar is devalued.
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    Question The Chinese might have a hard time enforcing 50 to 1.

    Very soon the Chinese will be directing the global economy.
    Will 31.1 gram coins stop being made?



    At today's gold price of $1325, after the Chinese get their way, silver would be $26.50.
    "I foresee little future in 'the price of silver', I see a huge future for 'the price in silver'." - heartbone
    "The truth is called hate by those who hate the truth." - K

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    That's a pretty picture, China controlling the world with an iron fist. Gold to Silver ratio will be 50 to 1, no ands, if's or maybe about it. Then dictating that all Government rounds will be formally clipped during the manufacturing process to only contain 30 grams of Gold or Silver. Is the excess 1.1 gram per coin to be shipped to mother China as a fee for the privilege of producing these coins?
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    Quote Originally Posted by valerb View Post
    That's a pretty picture, China controlling the world with an iron fist. Gold to Silver ratio will be 50 to 1, no ands, if's or maybe about it. Then dictating that all Government rounds will be formally clipped during the manufacturing process to only contain 30 grams of Gold or Silver. Is the excess 1.1 gram per coin to be shipped to mother China as a fee for the privilege of producing these coins?
    Perhaps on their official PM exchanges.
    But if the value of silver becomes substantially greater than 1/50th that of gold, then the commies would have to change.

    Anyone who wants to buy a box of gold today for the long term,
    should buy 80 boxes of silver instead and wait for the GSR to hit 50.
    Then take 50 of the silver boxes and trade it for a box of gold and keep the other 30 boxes of silver to trade at a lower GSR.

    I'm waiting for a much lower GSR than 50 before I do any trading for gold.
    If the mines stopped mining for PM, the price of gold would not rise much as a result,
    but the price of silver would zoom.

    There is no comparison, silver has actually more intrinsic worth than gold.
    "I foresee little future in 'the price of silver', I see a huge future for 'the price in silver'." - heartbone
    "The truth is called hate by those who hate the truth." - K

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    Quote Originally Posted by silverheartbone View Post
    Perhaps on their official PM exchanges.
    But if the value of silver becomes substantially greater than 1/50th that of gold, then the commies would have to change.

    Anyone who wants to buy a box of gold today for the long term,
    should buy 80 boxes of silver instead and wait for the GSR to hit 50.
    Then take 50 of the silver boxes and trade it for a box of gold and keep the other 30 boxes of silver to trade at a lower GSR.

    I'm waiting for a much lower GSR than 50 before I do any trading for gold.
    If the mines stopped mining for PM, the price of gold would not rise much as a result,
    but the price of silver would zoom.

    There is no comparison, silver has actually more intrinsic worth than gold.



    "Yes "anyone" that just happens to have and extra $700K laying around that wants to buy a box of Gold, don't do it, buy 80 boxes of Silver instead"

    Just make sure you have a really huge basement which still has a brick floor so you can pull up the bricks and bury your Silver for the future

    or just buy 8 contracts and take delivery and have it stored in a COMEX banks bullion depository outside of COMEX.

    And no you won't have to have in tested to be put back in the COMEX to sell as long as it never left the Bullion banks possession.

    You will have to pay for storage of those 40,000 ounces, but that would be cheaper than paying for storing 40,000 one ounce rounds unless you are crazy enough to try hiding them.

    Plus the 8 contracts will be much cheaper to purchase than 40,000 generic Silver rounds and the loss in selling those contracts will also be negligible

    and by storing them outside of the COMEX inventory, you can feel much safer and they will be stored by serial number so that identifies your bars in case of any problems.

    When swapping retail Gold and Silver, it's not cheap with a premium paid to buy it and a loss paid to sell it and then a new premium paid for the new metal your swapping into.

    Plus you can't even consider buying government rounds for this purpose as the premiums are so high compared to generic Silver for your loss when swapping most of the time.

    The sell back price on a single Gold eagle is $1,314 and you can buy approximately 78 generic Silver rounds or 70 ASE's

    So swapping the best Gold product for the best Silver product will only net you 70 ounces when the ratio is 80 to 1 as it is today

    One Gold eagle today with premium cost approximately $1,369 and 80 cheap generic Silver rounds cost $1,345 versus $1,497 for ASE's.

    The sell back loss on the generic rounds is approximately $40 versus $88 on the ASE's.

    If your thinking what's $48 when your comparing generic versus ASE's, well that's for 80 rounds not 40,000 as suggested in the above case.

    The actual value difference for all 80 boxes of Silver would be a $24,000 loss trading ASE's versus cheap generic Silver.

    But that's only taking the Silver sell back loss into consideration, then you have to add in the premium for the Gold ounces your swapping for and your numbers keep shrinking on these trades.

    For anyone with serious money, they would want to buy and sell Gold and Silver contracts and take delivery and have it stored in a COMEX bank storage vault outside of the COMEX inventory.

    Keep all these premiums for yourself. The other alternative would be to buy and sell gold and Silver ETF shares which is even cheaper but might be more risky since you have no identifying serial numbers.

    Plus trading shares of ETF items can be done with much smaller quantities than the huge investments needed on COMEX.

    The bottom line on playing the Gold to Silver ratio, it's not a cheap game when dealing with retail products and you need to take all these cost involved into consideration as your not simply dealing with apples and apples..
    Last edited by valerb; 18th March 2018 at 04:47.
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    Quote Originally Posted by valerb View Post
    If your thinking what's $48 when your comparing generic versus ASE's, well that's for 80 rounds not 40,000 as suggested in the above case.
    That's all in your head, a box containing silver is what I refer to, not a monster box of American Silver Eagles.

    Something like this, but from a cheaper source, is what I was referring to.

    https://www.apmex.com/product/68585/...-w-box-capsule

    The boxes, a nice touch, are optional.
    Heck you could even use four tubes.
    Or if one didn't need the flexibility, start with 8 ten ounce bars.
    Why would I be speculating about stuff that's above my resources?
    A ratio trade can indeed be easily be done incorporating normal dealer premiums.
    FUD Vale? Say it isn't so.
    Why make things seem so complicated?
    "I foresee little future in 'the price of silver', I see a huge future for 'the price in silver'." - heartbone
    "The truth is called hate by those who hate the truth." - K

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