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Discussion Starter · #1 ·
Many people have said that the ratio between gold and silver is a bit off and they expect silver to gain value faster than gold because of the ratio. However, I have been buying 'one dollar' silver american eagles for about $48 and gold 'ten dollar' coins for about $480. In both cases thats about $48 per dollar in gold or silver, so to me it seems the ratio is spot on?
 

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Maximus
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The dollar amount on the coin itself means nothing. They usually measure the ratio by weight. That being said... I always believed the solver:gold ratio was just bs anyway. Investors tout that so much but ignore the Platinum:gold ratio.
 

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The ratio should be for 1 troy ounce.

Right now the Silver/Gold ratio is: 43.22

It used to be around 70.

It should be heading toward 10, which is the rate at which it comes out of the ground.
 

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Many people have said that the ratio between gold and silver is a bit off and they expect silver to gain value faster than gold because of the ratio. However, I have been buying 'one dollar' silver american eagles for about $48 and gold 'ten dollar' coins for about $480. In both cases thats about $48 per dollar in gold or silver, so to me it seems the ratio is spot on?
You are also paying a much bigger premium for your smaller gold coin weight in comparison to full oz. gold coins..
 

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Live Secret, Live Happy
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Gold and silver will both be highly valued, but I don't put much stock in a specific ratio.

Buy gold to store wealth and silver for daily trades.
 

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Discussion Starter · #7 ·
Gold and silver will both be highly valued, but I don't put much stock in a specific ratio.

Buy gold to store wealth and silver for daily trades.
I actually believe that silver is over valued right now. If you look at the historical trend over the last ten years and draw a best fit trend line, then silver should be at around $20 dollars an ounce. I just bought at $40 so I'm guessing it was a bad time to buy and that it will drop to $20-$25. Look at the ten year trend for gold and you'll see that the price right now is spot on the trend with no huge swings.
 

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Both now have industrial applications, in varying quantities, that didn't exist in times past, which affects the cost now.

The value of either, is also affected by the devaluation of the currency it is measured in. A 10 year trend is not very accurate, given the shananigans that are and have been going on for close to a century.

Market manipulations which affect the ETF or "paper" gold/silver, sadly, also affect the physical cost. Not value, cost...

There is alot more in play today, than in times past.
 

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I actually believe that silver is over valued right now. If you look at the historical trend over the last ten years and draw a best fit trend line, then silver should be at around $20 dollars an ounce. I just bought at $40 so I'm guessing it was a bad time to buy and that it will drop to $20-$25. Look at the ten year trend for gold and you'll see that the price right now is spot on the trend with no huge swings.
I disagree. I think the demand from China and India alone will send Silver up, along Gold does. These cultures are heavy savers, and they are now insulating themselves from global inflation.

China cut Silver exports by 50% and tripled the production of Silver Pandas due to demand.

Indian Gold consumption dropped off heavily due to the high price while Silver consumption increased. Silver is the cheaper alternative to Gold.

Just because the prices are kept low on the COMEX, doesn't reflect the real demand. In fact, its a boon for us that are still buying silver. In a year or two, the prices will be ridiculous relative to the cost of living.

Lets see what happens when the HKMEX and forthcoming Mainland China Commodities exchange comes into full swing.
 
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