Okay, so, from what I understand, the historical gold to silver price ratio has always hovered somewhere around 12:1 to 18:1. Right now, it is somewhere around 44:1. Assuming that this will naturally "correct" itself, where do you think it will end up? Vote!!!
I think there are other factors going on that will influence the prices more. I don't see either gold or silver going down any time soon, especially considering what's about to happen to the dollar.
I think both will still continue to rise in price. I do think that a new ratio will be set also, but certainly not at the current one. My guess would be a mix between the old norm and what it is currently at. Definitely depends on demand in the next few years, the economic situation, and if any new sizeable deposits are found (unlikely).
I am really hoping that it will over correct itself. I know that's wishful thinking as I am a silver holder. I don't mind seeing gold rise but I would love to see silver start to catch up as more and more of it is consumed. 6:1 would be LOVELY!
I think in the future, gold will become even more expensive compared to silver. Silver supply is more or less stable. Gold supply is declining and the demand is rocketing up, although production from Russia and China is increasing.
Silver supply is declining too, right? Also, it's being consumed more and more and not being hoarded like gold. You don't feel that silver may some day become more scarce... or a lot more than what people once perceived? Either way, I am still going to buy. But I voted for silver to increase.... because... well... I hold silver.
The increase in demand for gold is much more than that for silver. That is the only reason why I am still going with gold rather than silver. Silver is not a rare metal like gold, but I don't know what the future holds for silver. You might be right.
Silver price seems to lag behind gold which has been leading the rallies. Silver was starting to close the ratio recently before the recent gold run up. I think you need a higher price initially in gold to stabilize before the market accepts that silver is under priced. That seems to be where it is sitting now. Once gold has maintained the $1500 price point for a year or so, then silver should catch up and perhaps get back to 20:1. 10:1 would be exciting though. A 175/oz price would certainly look nice on silver.
