• "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"

Gold / Silver ratio revisited

<SLV>

Platinum Bling
Sr Site Supporter
Platinum Bling
Joined
Apr 1, 2010
Messages
4,557
Likes
6,238
90.1
 

the_shootist

Don't hate me because I'm right!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
39,775
Likes
61,039
90:1 you have to scratch your head
 

oldgaranddad

Platinum Bling
Platinum Bling
Midas Supporter ++
Joined
Feb 21, 2012
Messages
5,149
Likes
9,169
Location
On the top shelf.

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
89.87/1 this AM. Both metals up.
 

savvydon

Site Supporter
Site Supporter
Platinum Bling
Joined
Dec 14, 2010
Messages
3,414
Likes
3,242
Here is a blow up of the only three year period (beside right now) since the gold window was closed (in 1971) that the GSR has been above 90. It shows that the GSR flitted between the low 80s and low 90s for a 2-3 year period. Other than one brief several month spike to near 100 in late 1990, it never got above 92 and change:

screenshot_97.png


Just to provide a little perspective if and when we move up from here...
 

Strawboss

Home Improvement Sales Trainee...
Site Mgr
Midas Member
Site Supporter ++
Joined
Mar 31, 2010
Messages
7,408
Likes
13,760
We are currently presented with an opportunity that only rears its head very, very rarely...its only happened 1x before in the last 50 years.

Everyone should be swapping their gold for silver...with urgency and purpose. Anyone that doesnt will surely wish they had when the ratio is at 50...or lower...(and 50 is being very conservative)...
 

oldgaranddad

Platinum Bling
Platinum Bling
Midas Supporter ++
Joined
Feb 21, 2012
Messages
5,149
Likes
9,169
Location
On the top shelf.

the_shootist

Don't hate me because I'm right!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
39,775
Likes
61,039
Agreed 100% Gold won't all of a sudden crash. It's undervalued too. The right move is to keep buying silver at these prices IMHO (note: my humble opinion don't mean shit by the way)
 
Last edited:

savvydon

Site Supporter
Site Supporter
Platinum Bling
Joined
Dec 14, 2010
Messages
3,414
Likes
3,242
You guys are right on it imo. There is usually a bit of dealer vig on a trade so another approach is to focus on the silver end of things and just keep accumulating...
 

oldgaranddad

Platinum Bling
Platinum Bling
Midas Supporter ++
Joined
Feb 21, 2012
Messages
5,149
Likes
9,169
Location
On the top shelf.

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
89.73/1 Friday AM. Both metals up.
 

savvydon

Site Supporter
Site Supporter
Platinum Bling
Joined
Dec 14, 2010
Messages
3,414
Likes
3,242
Obligatory Sunday night Asian metal beat down in progress. Silver leading the way down. GSR back up over 90 as I type.
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
90.22/1 per coininfo to start the week.
 

the_shootist

Don't hate me because I'm right!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
39,775
Likes
61,039

savvydon

Site Supporter
Site Supporter
Platinum Bling
Joined
Dec 14, 2010
Messages
3,414
Likes
3,242
I guess we are probably going to hit a 100 before it goes back down
I have absolutely no idea what is coming, but I'm going to form an opinion just the same. Two assumptions:

1)Silver's absolute current day bottom is about $14, give or take a few cents. This seems to be a post 2011 hard stop. I could be wrong here, but I won't believe so until I see it happen.

2)Gold's 'Maginot line' these days seems to be in the $1360-80 area. Gold has tried numerous times the past five or six years, unsuccessfully so far, to get above this number. It is widely felt that when it crosses this line a quick advance up into the $1500 level is likely, due to the lack of resistance between $1380 and $1500. At this point gold should catch the attention of average Joe investor. When this happens, silver (poor man's gold) should start to see increased interest from the public and receive a proportional boost. Silver is a smaller market than gold, so an increase of interest on the part of a similar proportion of the population should catapult its price to a greater extent proportionally than gold. It is at this point that the GSR should come back down to earth.

All this is pure guesswork, but even at gold $1320 and silver $14 we are still only at 94/95. Getting up over 100 would take a helluva squeeze. I don't think we are going to see it. Then again one quick look at my incredibly shrinking account fund will tell you that I have been wrong before... many times.;)
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
90.47/1 hump day close.
 

the_shootist

Don't hate me because I'm right!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
39,775
Likes
61,039
due to the lack of resistance between $1380 and $1500
Great post and a sensible theory but I must ask you to help me better understand what you mean by this.
 

savvydon

Site Supporter
Site Supporter
Platinum Bling
Joined
Dec 14, 2010
Messages
3,414
Likes
3,242
screenshot_98.png


I'm a technical lightweight but I can help with the basics. When looking at a chart, look to your left. That represents what the price action has been. Also remember that on the way up when price resistance gets breached it becomes support. Similarly, when price falls through support that support level then becomes resistance. In 2010 the price of gold was on the move. It eventually rose to over $1800. Following this high it flopped around between the $1500-$1700 area for a year or two. The bulls kept waiting for the next leg up. Then, in spring of 2013 the bears really started to turn the screws. The price of gold started to rapidly fall below support at $1500, culminating in the nearly $100 drop over a long weekend in April 2013. Following this bombing gold tried to bounce back, failing to break through the new resistance in the high $1300s. The next five to six years, leading up until now, have been a series of attempts for gold to break through that resistance in the high $1300s. If and when we get through this significant resistance, say at the $1380 level or so, there is really no significant resistance again on this chart until we get over $1500. What that means is, it will take a lot of market energy to break through toward $1400, but when it does it should be relatively easy for the price to rise up above $1500 or so.
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
90.1/1 with Au over $1350 & Ag over $15, interesting.
 

the_shootist

Don't hate me because I'm right!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
39,775
Likes
61,039
90.1/1 with Au over $1350 & Ag over $15, interesting.
Check again, the manipulators took some profits the past 30 minutes, as I highly suspected they would. It's like clockwork!
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
Check again, the manipulators took some profits the past 30 minutes, as I highly suspected they would. It's like clockwork!
That's what they do. Give it a minute, back over 1350 & .02 short of 15.
 

the_shootist

Don't hate me because I'm right!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
39,775
Likes
61,039
They've been pounding down metals all day until we're finally in the negative for the day and still heading south! I think its hilarious how they blatantly manipulate the markets with impunity! In the meantime I'll keep buying the dips!
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
90.78/1 for the weekend. Is 91+ in the picture?
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
90.37/1 to start the week.
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
90.52/1 with both Au & Ag up. Ratio stays consistent.
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
3,037
Likes
11,093
90.77/1 with both Au & Ag up. ??????
Seems the ratio stays the same no matter the ups or downs...
 

savvydon

Site Supporter
Site Supporter
Platinum Bling
Joined
Dec 14, 2010
Messages
3,414
Likes
3,242
Everything is up, but gold just kicked into overdrive. Something is going on...

If gold blasts off first we could see some short term stretching of the GSR even more.:popcorn:
 

Strawboss

Home Improvement Sales Trainee...
Site Mgr
Midas Member
Site Supporter ++
Joined
Mar 31, 2010
Messages
7,408
Likes
13,760
Wait for a correction. Sentiment is very high right now. High sentiment readings are usually indicative of a near term top in prices. Of course past performance is no guarantee of future blah blah...

A lesson shared from painful experience.
 

Argent Dragon

Site Support
Midas Member
Site Supporter
GIM Hall Of Fame
Joined
Mar 29, 2010
Messages
8,295
Likes
3,028
Location
Lone Star State
Who let the dogs out ???
 

the_shootist

Don't hate me because I'm right!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
39,775
Likes
61,039
At this point I am tempted to trade some gold. I am usually a gold hold guy no matter what but this is very tempting. I wonder what my dealer will trade gold for silver right now.
Meh...I bought more gold today. Gold is the 'wealth safe keeping' part of my retirement portfolio. Selling it for useless FRNs again sort of defeats the purpose of that part of my plan

Like SB says, the correction beatdown will come soon enough! It always come around and pisses on our parade!
 
Joined
Jan 10, 2016
Messages
441
Likes
414
Meh...I bought more gold today. Gold is the 'wealth safe keeping' part of my retirement portfolio. Selling it for useless FRNs again sort of defeats the purpose of that part of my plan

Like SB says, the correction beatdown will come soon enough! It always come around and pisses on our parade!
I was just thinking of a straight trade of a Gold Buffalo for something around 87-90 ounces of Silver. I'm calling my dealer.
 

the_shootist

Don't hate me because I'm right!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
39,775
Likes
61,039

stAGgering

Gold Member
Gold Chaser
Site Supporter ++
Joined
Apr 11, 2010
Messages
1,143
Likes
1,046
Quarterly completion, CAUTION !!
Have not heard a peep from you guys over this.
Nothing like a 6% drop right ?
I have no guess as to direction in next 24hrs.
Would love to see the old pattern take one in the head two in the chest.