Posted on 09/14/2010 10:51:05 AM PDT by SeekAndFind
“If the price ratio between [gold and silver] were to revert back to it’s historical average, then silver prices would outperform gold by more than 2 to 1. In fact, the physical ratio of silver to gold in the earth’s crust is 16 to 1. During the inflationary 1970’s, the ratio between gold and silver prices was at exactly 16:1…mirroring the proportions in which the two metals occur in nature.”
–The Little Book of Commodity Investing, by John Stephenson (Wiley)
With gold currently trading around $1250 per ounce, and silver just above $19, the current ratio of gold’s price to silver’s price appears skewed. One ounce of gold presently buys 65 ounces of silver, so if balance is restored based on the physical ratio of silver to gold in the earth’s crust (16:1), an ounce of silver should be trading near $80.
While silver has many of the same investment attributes as gold, it enjoys the added advantage of industrial demand. And as a currency alternative, silver is more practical. It’s been used as a currency, most notably by the United Kingdom (pound sterling). The French word for money is argent, or silver. In fact, the United States and Great Britain were both on a silver standard up until the 1800’s.
History does have a way of repeating itself, so perhaps our papered money modern world will rediscover silver. Meanwhile, industrial demand continues to grow for silver. Every day another 200 thousand souls are born into our world. The mature and emerging markets demand for industrial metals should continue to expand, and silver enjoys the added benefit of having investment appeal.
(Excerpt) Read more at blogs.forbes.com ...
I’ve been hanging onto my silver for many years. Just becasue it’s so beautiful on my dark skin. Not to mention the fact that it’s affordable!
‘Face
Back in the Carter days, when gold went over $800 per ounce, I bought silver, and it went from around $5 per ounce to over $15 dollars. Since then I’ve recommended silver.
>> “If the price ratio between [gold and silver] were to revert back to it’s historical average, then silver prices would outperform gold by more than 2 to 1.”
... or the bottom would drop out of the gold market.
SnakeDoc
Free silver 16:1!
RE: I’ve been hanging onto my silver for many years. Just becasue it’s so beautiful on my dark skin. Not to mention the fact that it’s affordable!
Plus it protects you from werewolves and vampires if today’s movies are to be believed.
But seriously, some people are doubting the value of silver since they believe that their use in photography (which used to account for 1/3 of it’s worldwide usage) is decreasing with the onset of digital technology.
I know a thrift store that always has silver dishes for really cheap. (They price based on what the item is used for, not what it’s made of.) I can tell it’s real silver, but I’m not sure how to tell the purity or anything else. Does anyone have any advice for buying silver this way?
Historically, the value of silver has NOT changed. Ever.
In 1963 a quarter would buy you one gallon of gas.
Today, that same 1963 90% silver coin, would be exchanged for around $3.00, the price of a gallon of gas.
In the early 1900’s Henry Ford paid his workers $4-5 dollars a day. A very good wage.
Today, that would be about $100 a day in dollars. 5 silver dollars = 100 green paper dollars.
The VALUE of Silver has not, and does not change.
Gold. Is over valued. It is a gold bubble.
It is ALWAYS a good time to buy silver as a hedge against inflation or devaluing of a currency.
Silver is NOT an investment. Since the price will change, this only reflects the value of the paper for which it is traded.
Silver is a FREEZE of value. Buy it, hold it, and I mean real coin. Not some certificate which is just as worthless as paper money or worse.
If you have 20% of your wealth in Silver in good and bad times, you will do OK. Save more or less depending on your belief in the state of the economy.
I still have my $14/oz. silver from the 80’s when the Hunt brothers tried to corner the market at that price......
“I’m in the money!”
With all the HD cameras in smartphones, photography is coming back! Buy silver!
Yes, DO NOT. Buy only formerly circulated “junk” US coins. THAT is the safe way to freeze the value of your labor. Other silver may be marked, but then you are trusting that mark and if you go to sell it, trusting the new buyer will trust you. Risk not worth the effort.
Silver at 20.46
Gold at 1270.00
Ping
Buy only formerly circulated “junk” US coins. THAT is the safe way to freeze the value of your labor. <<
Great advise!...only thing i could add is do it over time on pull backs....it is HIGHLY MANIPULATED!
On a side note....There is now more ounces of physical gold on the planet then there is ounces of physical silver due to its use as an industrial metal
(Do your own DD!!)
Ah that's my question! I have been buying bullion silver in bars. Is it better to buy silver in troy oz coins, instead of bars of either kilo size or fractional kilo? Bars nonetheless?
I love silver! And I buy it whenever I can. You never know....
Here is the reasoning. If you buy silver it is because you wish to freeze a portion of your wealth. Instead of spending it on comforts or investing it with risk to gain more wealth.
When the economy is good. You can invest money, wealth, in the form of debt notes (greenbacks) dollars, whatever you have, and try and gain more than the inflation is taking away.
If growth or inflation is 4%, you need to net MORE than 4% to gain. If inflation or growth is stagnant or declining, you may make more paper, but the value, in purchasing power may actually be less. There was ways to tell. You need to know, to make the right decision.
If the economy is looking as if prices, and value may FALL, like stocks or real estate, then buying silver with paper will SAVE or FREEZE the value and you will not take a loss.
That freezing, for those purposes above, any kind of silver is fine. Coin, bars, forks and spoons. Doesn't matter.
If however, you seek a hedge against a worsened economy or the collapse thereof, then silver COIN, junk face value quarters, dimes and dollars from pre 1963 are the best hedge.
Because those are small enough and easy enough to recognize that they will have instant trade value. A fork? Who knows how much silver is there? A bar? Who is to say you didn't cast the center with lead or that it is impure? A coin minded by the USA in silver is known and therefore more valuable, should the shit hit the fan scenario come about.
Hope that helps.
Don’t!
.
> “Gold. Is over valued. It is a gold bubble.”
You wish!
Gold is being manipulated downward by every government on earth at this point.
Brief breaks in the manipulation result in sharp spikes in price, which indicates that it is probably at least 25% undervalued. The engine is of course the printing presses that are running at full speed.
I expect gold to break out significantly within a month or sooner.
.
Indeed it does. You explain it very well. You should teach high school economics. They need folks like you. I know, I have been a high school teacher for 21 years. I teach economics, too. It is just always easier to teach the theory (especially where things go wrong) instead of grasping personal realities.... while trying to stay afloat. If that makes any sense. Here I sit, in my classroom and it's 5:30pm as I wait for yet another "Open House" to get underway. I won't be home tonight until after 9:00 pm and then back in by 7 a.m. Wait... I think I hear them in the distance.... the thunder of approaching parents....
It makes FLAWLESS sense. I got it perfectly. And the funny thing is, my two degrees are History and Economics, and I just minored in PoliSci. I just graduated last year with my JD. But I got the two BA/BS just in the case that I ever DID wish or need to get a job as a Teacher. LOL
I do a lot of educating in life and business, just not in a classroom setting. Nice to "meet" you.
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