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<p>[QUOTE=&quot;fatima, post: 1351594, member: 22143&quot;]Yes indeed. People will argue long time lines when it agrees with their per-determined view of the universe.&nbsp; They point it out as some sort of proof they are right.&nbsp; This same argument is made about the stock market.&nbsp; Yet in both cases, the real data is often ignored.&nbsp; For example, the stock market has been a losing proposition for longs for more than a decade.&nbsp; So, Let&#039;s look at the historic Silver/Gold ratio since we went 100% fiat in 1971.&nbsp; </p><p><br /></p><p>Why 1971?&nbsp; Because if one thinks that some sort of gold and silver ratio is important then one absolutely can&#039;t ignore that the legal reasons for it ended 40 years ago when both silver and gold lost all legally defined ties to the currency, each other, and when the currency went 100% fiat with notes issued only by the Federal Reserve.&nbsp;&nbsp; With one artificial exception noted in 1972, there has been no correlation between silver and gold as determined by their price ratio.&nbsp; </p><p><br /></p><p>[table=&#039;head&#039;]</p><p>[tr]</p><p>&nbsp;&nbsp;&nbsp; [td]<b>Year</b> [/td]</p><p>&nbsp;&nbsp;&nbsp; [td]<b>Silver Price/oz</b>[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]<b>Gold Price/oz</b>[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]<b>Ratio</b>[/td]</p><p>[/tr]</p><p>[tr]</p><p>&nbsp;&nbsp;&nbsp; [td]1971[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$1.88[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$35[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]18.61[/td]</p><p>[/tr]</p><p>[tr]<i></i></p><p><i>&nbsp;&nbsp;&nbsp; [td]1972[/td]</i></p><p><i>&nbsp;&nbsp;&nbsp; [td]$1.60[/td]</i></p><p><i>&nbsp;&nbsp;&nbsp; [td]$32[/td]</i></p><p><i>&nbsp;&nbsp;&nbsp; [td]$16*[/td]</i></p><p>[/tr]</p><p>[tr]</p><p>&nbsp;&nbsp;&nbsp; [td]1981[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$8.43[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$492[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]58.36[/td]</p><p>[/tr]</p><p>[tr]</p><p>&nbsp;&nbsp;&nbsp; [td]1991[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$3.91[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$371[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]94.88[/td]</p><p>[/tr]</p><p>[tr]</p><p>&nbsp;&nbsp;&nbsp; [td]2001[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$4.37[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$273[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]62.47[/td]</p><p>[/tr]</p><p>[tr]</p><p>&nbsp;&nbsp;&nbsp; [td]2011[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$29.83[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$1467[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]49.17[/td]</p><p>[/tr]</p><p>[tr]</p><p>&nbsp;&nbsp;&nbsp; [td]Jan 19 (open)[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$30.77[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]$1665[/td]</p><p>&nbsp;&nbsp;&nbsp; [td]54.11[/td]</p><p>[/tr]</p><p>[/table]<i>* 1972 the $ was devalued against gold by the Nixon administration so that the silver/gold ration approached 16:1</i></p><p><br /></p><p>So as one can clearly see, there is no longer any predetermined relationship between gold and silver and investing using such a strategy over the decades would have resulted in failed expectations.&nbsp;&nbsp; Gold and silver don&#039;t track each other and investor&#039;s in either metal need to understand what drives prices.&nbsp;&nbsp; Gold is the hedge against currency abuses, debasement, where people run to when times go bad.&nbsp;&nbsp; Silver, who can say?&nbsp; I don&#039;t know but it&#039;s clear the price is not being driven by gold.&nbsp;&nbsp; The math doesn&#039;t lie.[/QUOTE]</p><p><br /></p>

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