I don't quite understand last year when gold hit it's all time high wasn't silver close to or over $20/oz? and now gold is over $30 higher then it was during it's all time high at $1,061.80 and silver is at $17.79/oz anyone else see something strange there? anyone know why is is the case? is there a gold bubble and not a silver bubble? or is silver prices being held down intentionally?
gold is up only 23.2% since dec. 31, 2008 silver is up too much 68.0% since dec.31,2008. platinum is up 54.0% palladium is up 89.1%
I'm not thinking about the drops and rises I'm talking about the totals when gold hit it's all time high in 2008 it was around $1,028/gold and silver was around $20 or more /oz that's 51.1 oz silver / 1 oz gold and TODAY $1,061.80/gold and $17.79/oz that being 59.68 oz silver / 1 oz gold if the ratio was at that 51.1 / 1 then silver should be at $20.77 / oz Edit: just looking for reasons why?
I have been reading in the news about large international banks and governments dumping dollars and buying up gold. However, I have not seen any mention of them buying silver.
the ratio before or long time ago is fixed many years at 16 to 1. then it went up to 80 to 1. sometimes went down to 45 to 1. there is no permanent right now to fix it stable or constant. it all depend on supply and demand. the ratio is only a guide. just like people looking at the graphs.
There is no fixed ratio for gold and silver. Gold can go up, and silver can go down and visa versa. Neither's value is proportional to the other.
..... I just want to know if there's any actual info out there as to why gold takes so much more silver then it used to in order to equal in value
I believe Doug answered a similar question to this a few nights ago. It has to do with supply and demand....there is more silver than gold out there.
The answer is no, there isn't any actual info out there as to why gold takes so much more silver than it used to. But there will be many opinions.
It's an excellent question that I personally don't know enough about to give a complete answer. It could have something to do with the oft-reported "ponzi" scheme of "naked short" contracts in silver....which supposedly holds down silver prices artificially. I only know what I've read from a few "not so disinterested" reporters, but there could be something to it. I do know that silver and gold prices fluctuate independently all the time for a wide variety of reason...supply/demand, carry trades, etc. Here's a chart that shows the silver/gold ratio relative the price of silver alone. Note: The "Y" labels on the left for for the price of silver and the "Y" labels on the right are the Silver/Gold ratio labels. As you can see, we've only touched the 50:1 ration a couple of times in the past 25 years.
Yakpoo, nice chart. I think anybody who looks at it and is honest with themselves will admit that the highly publicized gold/silver ratio is pretty close to worthless. It could be anything depending on the factors affecting the supply and demand of the two metals at any point in time.
I think what he meant was that you can't really look at the gold/silver ratio and use it to determine anything concrete. Worthless not applying to any $$$ values but rather an useful value to oneself. The gold/silver ratio is a calculated ratio as what one metal should be in relation to the other. Its like calculating the HDL/LDL ratio when you get your blood tested. When you divide the two numbers into each other, you get a percentage. So when you divide the value of gold into the value of silver, you get a percentage ratio. There are many analytical assessments as to what this ratio should be and whether or not this ratio is fixed. By looking at the graph and with a few calculations, you can see that the ratio fluctuates and is not constant making the theory of a fixed ratio "worthless". Hope this makes sense. At least that is how I understood it.
I have been reading in many places just the opposite, Gold really has no uses other than looking pretty, while silver is used by industry in large quantities. This has resulted in less silver in stockpiles than gold! http://dailyreckoning.com/value-of-silver-vs-value-of-the-dollar/ This article gives some stats about halfway down. However, in my opinion don't question it, just use this time as an opportunity to do some stockpiling before the prices of silver finally catches up.
are you kidding me? gold has no uses except looking pretty? look how it continues to rise year over year.. you must have the wrong gold
a couple thoughts I had and tell me if I am wrong or close Would one be correct to think psychologically about people's relationship to pm's? I'm not saying that it should be the only consideration but it couldn't hurt. Gold is in demand because it's the #1 PM and Silver is #2 and nobody remembers who won the "silver" medal in the olympics. (least what I know about how people think and pm's can be controlled like anything else just by opinions) Also silver is more industrial usage then gold so even if people would get the idea to run from gold cause the gold sky is falling at least that's the perception, Silver could be a backup when industrial usage returns once the economy returns to good health and thus the price should get back to where the avg. ratio had been any comments related to these ideas are appreiciated
