A few days ago I found a great graph of the silver:gold ratio over the last 500 years and I forgot to save it. I've tried to find it, but no use. But it got me thinking... Can you guys provide links to this sort of data? I ask because I seem to remember the graph showed the Ag:Au ratio constant only up to about 1850, and I'd like to be certain. Also, any reliable data for industrial uses of silver. So many posts seem to be vague opinions. Any good articles about PM by people who aren't also CEOs of www.mustsellyougold.com or bears who are just writing the minimum to earn their fee..etc. I guess, what I'm trying to say is...... How about us collecting some real, down-to-earth, scientific verifiable facts! Steve - still waiting for a coin capsule for his 5oz Libertad.
The gold silver ratio isn't a "scientific fact." There is no cause and effect relationship between the two. They aren't substitutes for each other in any significant sense other than as money, and they aren't money anymore. But if you insist on using this information, google is an easy way to find it The best author for silver articles is Ted Butler. Jim Sinclair is as good as anyone on the gold market.
You could likewise make a ratio chart for the price of tea and fine china, and it would be about as predictive of future prices. Correlation does not equal causation.
AAH! Nightmares of psychology! Oh, and here's a chart. http://www.rapidtrends.com/silver-to-gold-ratio/
The problem with this technique is that the lines are drawn with perfect hindsight. I still like silver as a speculation despite the price rise, but the gold/silver ratio would never figure into the buy/sell decision.
Thanks for the replies all. Yes, I'm well aware that what I read about the gold-silver ratio should be taken with a large pinch of salt and in fact, that was why I asked. There are so many articles about gold-silver investing on the net and I try and cut through the hype and examine the facts. Not always easy! Re. searching via Google, I never, ever use Google for anything related to finances or anything 'personal'. A while ago I was showing someone a home video that I'd put on Youtube and suddenly there were ads for coins appearing at the side. I hadn't realised that Google had bought Youtube and had a policy of collecting IP addresses. So now I use ixQuick for the 'important' stuff. By the way, someone put this link on the UK Motley Fool site: http://www.youtube.com/watch?v=Z0YTY5TWtmU&feature=player_embedded Fascinating to see how Peter Schiff predicted all this! There's a guy around 06.20 (the one on the left) who displays the most amazing arrogance. I hope someone forces him to watch the video! Steve
The World Gold Council (gold.org) has lots of statistics, and they don't seem to be insane. They do represent gold producers, so treat them as a source of data rather than opinions. There's probably an equivalent for silver, but I don't know what it is.
Howdy Here's one link: http://seekingalpha.com/article/143934-history-of-silver-part-iii-inventories-are-gone And another: http://elainemeinelsupkis.typepad.com/money_matters/2008/02/elaine-meinel-5.html and wiki: http://en.wikipedia.org/wiki/Silver_standard And while I'm aware of many that give little credence to this ratio, what matters is if there are people that do give it credence and make investment decisions accordingly. Something doesn't have to be true if folks THINK it's true and behave as if it is. peace, rono
