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Silver's value; some ratio analysis

silverwood

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#1
Silver's value; some ratio analysis

With cries of silver shortage here again I thought I would share some of my silver analysis with all. I am going here to www.stockcharts.com and using the : you can do ratio analysis.( to view chart go to stockcharts and type in the below ques). Here is what I am look at; all charts are weekly.

$gold:$silver currently at 74.69 with 200 weekly moving average (wma) of 61.3. So gold is quite expensive in terms of silver.

$silver:$copper currently at 6.13 with 200 wma of 7.29. So copper is relatively more expensive than silver. So can you say that silver is easier, and more abundant to mine? Think about that.

$silver:$gaso currently at 7.67 well below the 200 wma of 9.18. So gas is more expensive now in terms of silver.

$silver:$crb currently at 0.71 and 200 wma of 0.84. So silver is buying less commodities in general.

$spx:$silver currently at 133.37 well above the 200 wma of 77.49. So stocks have a long way to fall just to revert to the mean! Can you say Shemetah! :wink:

$hui:$silver currently at 9.10 with the 200 wma of 12.62. Well it looks like mining stocks are sooo hated even silver is valued more than them. So this is a good thing as the mining industry is being starved for capital they are in survival mode. What will be cut is development for further in ground supply. If we go to the silver institute we can see that silver production has been rising for the past 10 or more years from 639.9 million ounces in 2005 to 877.5 mos in 2014. It is a long slow yearly number metric but we need to see this trend reverse with a decline in production starting in 2015 and continuing for the next year and year after that.

GG:$silver is currently at 1.06 and 200 wma of 1.21 Goldcorp is a large silver byproduct producer. As you can see its stock price is under performing silver price.

AG:$silver is currently at 28 and is way under the 200 wma of 51. !st Majestic is a popular primary silver producer its share price is way underperforming silver.

What to take from all this. IMO, silver is cheap and it may still get cheaper! So cost average your stacking efforts and leave gold stacking to the wealthy. Some day the gold:silver will reverse then regardless of what the Fiat dollar prices of the metals are you can sell some silver and stack gold. Mining shares are risky here so buy some with money you feel you can lose, think Las Vegas! So if I gaze into my crystal ball and using that lucky number 7, silver should make a new high some time in 2018. God bless all.
 

Uglytruth

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Anyone know how much silver is used for industry per year? Not coinage, bars, jewelry or anything like that. I'm thinking electronics, solar panels etc?
 

silverwood

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#3