Thursday, October 30, 2014

Silver: Gold Ratio is 73:1

Commodities are getting hammered today. Silver is down 3%.

If investing in precious metals is an interest of yours, be sure to watch my videos on the Silver to Gold ratio. 

The ratio is 73:1 today - far outside its 2014 range in the mid-60's and 10+ year average of 58:1. 

Based on my research, it appears to be a good buying opportunity for silver, and a trading opportunity to go from gold to silver.  Of course, do your own research first!

Related at ZH: Greenspan suggests buying gold.

My Precious Metals Videos:


Robert What? said...

What is your guess for the hammering of gold and silver when inflation is hitting so many other commodities hard?

Karl said...

Good question. I'm definitely not the one to answer it, but I'll throw two things out that I've come to learn from others:

1) I've come to accept the idea that deflation will hit the metals hard prior to the collapse/crisis event(s) that will trigger high inflation. Ann Barnhardt and Jim Rickards are two that have said this.

2) The Fed said everything is fine earlier this week, and ended the disastrous QE. The market seems to agree things are all better now. When things are fine for America and the US Economy, then metals drop. Good for America is bad for metals.

Could be #1, #2, a combination of the two, or some other reason all together.

Metals have so many other positive characteristics that outweigh these recent drops. Unless you are forced to sell now...