Do you consider the silver to gold ratio when buying?

Thanks for all the interesting aspects of gold and silver, it has been excellent reading topic! Thanks Richie

 

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The only people that care about the silver to gold ratio are marketers that want you to believe their hype and buy their product. The so-called 16:1 historical ratio went completely out the window decades ago. Silver and gold are now completely decoupled. Anyone that tries to hype some imaginary historical reason for a valuation is either trying to earn a commission, or is completely delusional.

 

Okay, so suppose they are decoupled. I don't actually agree with that statement because there is a high correlation in their prices. But, just suppose....

If you collect gold and silver bullion wouldn't it be a better deal to spend $1350 on silver and get 80 ounces that to spend it on gold and get one ounce? And then later it the ratio drops to, 60, spend it on gold instead of silver. If you pay no attention to the ratio and just buy whichever you feel like then you will probably end up with less of each. Just because you don't believe in the ratio does not mean you should ignore it.

 

If your goal is "quantity of metal" then I suppose that might be true. But at that point, you might as well be trading barrels of oil or bushels of corn. Those have ratios too. It's a function of them trading independently. What you describe is just basic commodities trading - buy low, sell high.