http://www.zerohedge.com/article/eric-sprott-expect-gold-silver-ratio-hit-single-digits "The case for silver is even more compelling when one considers the ramifications of its dual role as both an investment and industrial metal. Last year, non-investment demand for silver (which includes industrial, photographic, and silverware demand) totaled approximately 610 million ounces.6 This represents approximately 64% of primary supply, leaving approximately 341 million ounces to satisfy investment demand.7 On the gold side, industrial usage totaled 13 million ounces, or about 10% of primary supply, leaving approximately 125 million ounces left over for investment demand.8 So, after netting out the industrial usage the primary supply left over for investment demand is about 2.7 times that for gold. However, if we convert those ounces to dollars at current prices, we’re left with $15 billion worth of silver available for investment versus $186 billion worth of gold, or a one-to-13 ratio of silver to gold! This means that in terms of primary supply, silver only has 8% of the capacity for investment that gold does despite having equal if not more dollars flowing into it."
Thanks for the link Buster. I got the following link in the comments section from yours, and it is pretty compelling. I may just have to go drop a chunk of change this weekend at my local coin shop. http://tfmetalsreport.blogspot.com/2011/04/wednesday-wow.html
So the author is assuming that the two metals has the same desirability as the other? He is ignoring at least 5,000 years of desirability of gold above all other metals in human society? He is ignoring large percentages of the world who value gold and have no interest in silver ownership? This means that in terms of primary supply, silver only has 8% of the capacity for investment that gold does despite having equal if not more dollars flowing into it Read more: http://www.cointalk.com/showthread.php?t=170040&pagenumber=#ixzz1K65Zmprf Where does he get that? His own math says that the value of silver able to be "invested" in is 341,000,000*44=15 billion, while gold is 125,000,000*1500=187 billion, like the man says. How is that equal amounts flowing into them? The author is right that there is less silver as a percentage of production able to be bought, but that is primarily because silver is an industrial metal, and not as valued by most of the world. I could say the same of copper, aluminum, and even platinum. This does not mean that humans will magically start to covet silver as they do gold. Go give a girl a silver engagement ring and see how happy she it. Try to give my Thai wife silver anything and I will get a week on the couch minimum. Just critiqueing the passage, not you Buster. Just seems to me the ratio he comes up with is purely chance and a numbers game, but what do I know. Chris
Howdy all, Here's an article by Bevan who is also bullish on silver. http://www.kitco.com/ind/Bevan/apr182011.html rono
Yes Indeed. It should be noted, that no government holds silver as a monetary asset and this includes the USA. On the other hand, gold is held not only by the US Government but the Federal Reserve as well in several large depositories. The Federal Reserve's depository of gold is the largest in the world and is located at the NY Fed building. The US Government is the 2nd largest and is held at Ft. Knox, and at West Point. The US government has not held silver since the 1960s.
