U.S. Mint activity report reveals a 191:1 ratio between the number of silver and gold

In the case of silver, the latest U.S. Mint activity report reveals a 191:1 ratio between the number of silver and gold ounces sold at the Mint.
http://etfdailynews.com/2012/09/14/b...d-agq-sil-zsl/

 

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Thanks for posting this... I need more silver

 

And I need this information because..............?

 

9 more and the ratio of 200 :1 starts the apocalypse and the end of time

 

It's All About The Gold !

 

People look for any reason to believe that silver is equivalent to gold.

 

No, but gold, silver and copper are in the same group on the periodic table, and all three have been use as money.

 

Shhhhhhhhh! That's a secret!

Sheesh! Some people!

 

Maybe, just maybe it's pointing out that people are buying more gold than silver. The pace is more than 3x the gsr. Much of that might be the price of gold is out of reach of many that are looking to put some money into physical metal.

 

Yeah, but nobody knew it was a secret -- until you called attention to it.

We'll be dealing with you shortly.

 

1 ounce gold is 50 times for expensive than 1 ounce Silver.

So the ratio at US mint should be 4:1 for silver and gold.

 

How is it that the Gold-to-Silver ratio should translate to a sales ratio of 4:1 for the US Mint?

 

Many people can't afford to collect gold.

 

Of course I understand that. But how is it that a 51:1 price ratio is supposed to translate to a 4:1 sales ratio? Why not a 51:1 sales ratio? Or 100:1 ratio? Or why is it that a 191:1 sales ratio un-natural?

Here's a simple question for someone making such claims: What is the price elasticity of demand for silver? If SilverTard cannot answer that question, then I have zero confidence in his opinion on the matter.

On the larger scale, if you have $10,000 to invest, you can just as easily invest that in gold as you could in silver. Since investors are more important than collectors in determining if gold or silver is underpriced or overpriced, the idea that people can't afford gold should be irrelevant since people that have more than $50 to invest can buy either.

Another thing to consider is the timeliness of the Mint's sales figures. I'm sure they don't reflect up to date sales information. i.e. The gold to silve ratio was 59:1 a month ago, and 45:1 a year ago. What time period do the sales figures come from?

I think sales figures for coins from the US Mint is not a good indicator of where investors think the best investment opportunity lies. I think they are a good indicator of what collectors are buying. That is all, nothing more.

What I also think is that the author of this article is heavily invested in silver and wants to see the prices go up to $90-100/Oz. But, for whatever reason, the authors of these articles are not required to divulge their holdings in commodities as they would be if the article was about stocks.

 

I think you are thining about this too hard. Many people buying from the Mint are collectors, not investors. Many people like silver. That's all.

 

I agree. With the mint's premium, I don't imagine too may stackers are buying from them.

 

Not at all. The article in the OP was all about investing, and for whatever strange reason, the author used sales figures from the Mint to justify his predictions of $90-100/Oz silver prices in the months to come.

For whatever even stranger reasons, SilverTard asserted that the sales ratio should be 4:1, and I'm somewhat curious where he got that from.

 

Gotta be. What investor in his right mind would pay the premiums over spot that those guys charge?

 

The author is ignorant, and should be ignored. Regarding SilverTard, I took the comment to mean that the silver sales should be 1/4 of what they are compared to gold, probably to bring it closer to the much respected but probably useless silver/gold ratio. It just wasn't stated clearly. I may be wrong, but it isn't important.

 

The US mint does actually put out sales reports on a daily basis when they have one. I find that the data is interesting, and it can or does have some clues as to what's going on with people buying physical metal. It has nothing to do with paper investing, or very little.

If you don't think there is a difference between people investing in SLV or GLD and buying the actual physical metal and holding onto it, you're not paying attention.