16:1 Ratio thing

[BeefJerky]

Just an observation....Thought it was interesting, There are currently 16K silver bullion items on Ebay and 1K gold bullion items.............hmmmmmmmm:proud:

[Silver Seraph]

An astute observation I must say! Good work Sherlock!:wink:

[TheKingsSon]

Just an observation....Thought it was interesting, There are currently 16K silver bullion items on Ebay and 1K gold bullion items.............hmmmmmmmm:proud:

and just "WHAT" do we account for this?

[BeefJerky]

Alright......easy now.:clap2: :clap2: Damn site full of wise as*es.:coolbeer:

[samwheat]

I can't understand why they're selling ..... only to buy back later at much higher prices.

[GREENSILVERHORN]

(China decides to buy computers for everyone in their country)

LOL

China simply gains momentary monetary strength by selling its stock.

The price decreases therefore, they buy it back slowly until it reaches the same level.

Sort of a PM loan to themselves, All in all they win.

[HistoryStudent]

Silver is in the earth about 10 to 1 to gold: unmined and "deep in the bowels" of the earth (pun on USA Secretary of Treasury - gold - in trust for the American people - should be noted as true).

Silver is IN less abundance above ground than gold is right now. In other words silver should be more valuable than gold is like back 4,000 years ago when it was 1 to 1.

Silver in the last 100 years has tended to go around 33 to 1: now it's about 58 to 1 +/-.

Silver in real dollars is cheaper right now than it has been for years. Remember in 1965 the money supply was only 1/35 of what is is now.

$1.29 X 35 = $45.15

Read what this fellow says:

http://www.gold-eagle.com/gold_digest_05/hamilton021706pv.html

[hoarder]

Well said, HS.

Gold and silver historical average is about 16 to one. Right now it's 58 to one. More gold above ground than silver right now. More essential uses for silver....it's a no-brainer!
After it hits $10 it will hit $20. After that $30, then $40. Someday this decade we'll be laughing at people who were timid under $10 an ounce.

[hoarder]

If the value ratio were closer to it's historical average (16 to 1) and above ground stock ratio was at it's historical average, there would be less upside potential for silver, IMO.

Based on golds current price, silver would be at $35 if the value ratio was equal to the historical average.

Based on above ground stocks (there is no precise information on it), silver should be over $600 an ounce since it's scarcer (supposedly) than gold.

Makes <$10 silver look really cheap, huh?

[hoarder]

When I bought my 100oz bars it took them a week to get them in, not sure if they just do that for perception sake, dealer normal operation procedure or an indication of the shortage.Availability at small local dealers is not a very accurate indicator of supply. They mostly deal in numismatics and don't want to have capitol tied up in low-markup stuff like bullion.
What to look for is when the most basic and plentiful kind of silver bullion; 90% silver US coins, is not available at the big bullion dealers like Tulving and Apmex. It will happen. Fasten your seat belts when it does.

[Au_Ag]

What to look for is when the most basic and plentiful kind of silver bullion; 90% silver US coins, is not available at the big bullion dealers like Tulving and Apmex. It will happen. Fasten your seat belts when it does.

Current rumblings that Comex is very tight on actual deliveries, makes me want to watch the above very carefully.

My guess that Hoarder is correct, and when that happens _will_ be the beginning

Regards

Ken

[GoldWampum]

APMEX silver stock seems to be dwindling.

[Silverity]

Since I don't mind asking stupid questions I'll throw it out. What is the big deal with the gold/silver ratio? I'm learning here so educate me please! Let me explain my questioning the ratio a little further.


Even though the gold-silver ratio was decoupled from a value of about 16 when silver was demonetized in the 1870s, the ratio has been touched since then in 1920, 1968 and 1980. There is a cycle here and I expect it to hit that mark again in the years ahead.

Note these years were hit when silver and gold were at different stages of monetization.