Do you consider the silver to gold ratio when buying?

It seems to me that silver at near at high ratio (80:1).

So, I am buying mostly silver coins now. Anyone look at this? Just curious.

 

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Never, it's meaningless. Gold has the ability to get far more expensive than silver, it will ALWAYS be high if gold has a decent value to it. It's just a marketing gimmick

 

Nope.

 

No, why would I? I'm buying the coin or bullion not the ratio!

 

Nope, I consider the metal-to-dollar ratio. More specifically, I consider the buying-price to selling-price ratio, and only buy when I know I can immediately sell for more. It doesn't always save me -- sometimes the market drops before I can sell, sometimes I just decide to keep it -- but at least I'm not starting out in the hole.

 

No. I SELDOM buy silver, and NEVER buy gold any more. Why? Well actually, ironically enough, the gold/silver ratio. When the gold/silver ratio is high, that tells me that BOTH commodities' prices are absolutely LOADED with speculative froth that bears NO resemblance to the two assets' fundamentals.

I see BOTH silver and gold as being at unsustainably high prices now.

 

I do tend to buy more silver when the ratio is high and more gold when it is low. But I buy both and no longer buy a lot of either.

 

Another no. Even if you feel certain that the ratio is bound to revert to its mean - assuming you can decide what its mean is - isn't it a little hard to look at its movements over the last century and feel confident that it will revert any time soon? Even for pretty long values of “soon.”

 

No, I check the "price to wallet" ratio.

 

This is a great point. If when you sold, the buyer was somehow buying back from you based on this G:S ratio, then there would be a reason.

 

I believe at one point silver prices will rise, due to the fact that paper currency is not backed by anything is just a piece of paper that the treasury continues to print. JPM controls so many silver contracts they would go bankrupt if all paper contracts were cashed in at one time, they don't have the silver in the vault downstairs, the ratio(Gold to Silver) is way out of whack, silver has been a commodity for thousands of years, if there ever is a market crash, I am glad to have some silver bullion, (Kennedy & Franklins ). to hold me over , collector coins are a total different story, those are a once in a lifetime piece of history.

 

I buy ASEs every year for my Danco album and few extras as a speculative play. The G/S ratio means very little to me.

 

I think the woo woo crowd really plays the GSR for some reason. Anyways, I just go for deals on either Au or Ag. That determines what I am buying. I am getting a little heavy on PM's percentage wise so I will be in time out. I always say that, lol.

 

I just saw a chart on www.goldsilver.com that showed when the Stock Market goes into a bull market, that silver often does the same. Gold only did it once in 1980, after it had gone to the moon, so it was still up when all was said and done. When things get bad, the poorer people will need to sell things first. And they buy silver because it is affordable. So that tells me there will be a glut of silver on the market, which will make the price go down even further. So I buy gold, when I am buying PMs.

 

i hope ur not buying from goldsilver.com sd bullion or kitco a lot less premium

 

In today's world the gold to silver ratio is meaningless and here's why.
If you go back 2,000+ years the average has been about 16 to 1.
But while you are at it there was a time (in Europe) when lead was as valuable as gold.
For much of those 2,000+ years governments (kingdoms, empires, etc.) kept the status quo of silver to gold for trade purposes.
However, as world governments have gotten out of the habit of using gold and silver for trade or need it to back their paper money, there has been no need to maintain the ratio. So now the value of gold and silver is just a reflection of what people will pay for it, and the general devaluation of paper money.
And interesting exercise it to see how much gold or silver (in coin) it took to buy a number of different items in the 1920 vs. how much silver or gold it takes to buy those same items today. In most cases while the price has gone up, if you convert the current cost in silver or gold, the cost is the same.
For instance you could buy a nice car for $500 in gold in 1927. That $500 in gold today would get you a $32,000 car. So in a sense the value of gold hasn't gone up, its just that our dollars are worth much less.

 

And $500 in equally "hard" silver coin would have bought you the same nice car in 1927, but you'd be hitting the used-car lots with the $6000 it's worth today.

Yes, the dollar loses value over time. But gold and silver are commodities, and their prices fluctuate, no matter what terms you use to express them. You can beg the question by saying "gold is the only true measure of value", but that seems pointless.

 

You can't eat gold or silver and it won't keep you warm on a cold night.
Yet we (people) are willing to pay through the nose for both.
I tend to like silver over gold because about 80 percent of its production is used in industry (a must have/need). While about 80 percent of gold goes into jewelry and bullion (not needed).
But a $1,000 in gold sure takes up a lot less space than $1,000 in silver.

 

I do not think much about the gold/silver ratio when considering to buy or sell silver or gold. However, I DO look at the 200 day moving average of their prices. If I am thinking of adding silver or gold, I'll nibble away when their price is below the moving average. If I am trying to raise some cash, then I'll see which one is above the moving average and sell a bit at a time. In other words, dollar cost average your way in or out of gold/silver according to the current price compared with the 200 day moving price. Today, gold's 200 day moving average price is $1290 per oz. Silver's 200 day moving average price is $17 per oz. Sell gold if you need to raise cash, buy silver if you are putting new money into bullion. However if someone offers you a great deal, then that adds a new factor to the decision process.