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<p>[QUOTE=&quot;qsilver007, post: 1466436, member: 34667&quot;]To start, I will use spell check and add punctuation.&nbsp; First, all I was trying&nbsp; to do was add some real life color to this blog with fact and trends that I have&nbsp; seen in the trading world.</p><p><br /></p><p>&nbsp;I realize that coin collecting is&nbsp; simply a hobby for me as it is for many of you. I am guessing that many of us&nbsp; have and do own GC(Gold) and SI(Silver) coins, so we are in the minority, and&nbsp; are a great deal more informed than the average public/investor. </p><p><br /></p><p>As I stated&nbsp; working on the Street, and having Asian heritage, PM&#039;s have been a part of my&nbsp; life and culture since I can remember.&nbsp; So getting back to real life, investing,&nbsp; making money. The two year moving average for the Gold/Silver ratio is 50:1.&nbsp; During the more dull years, 2004-2007 the average was 57:1. We currently stand&nbsp; in that vicintity 57:1. </p><p><br /></p><p>This was Pre worldwide ZIRP rates and the bailouts and&nbsp; financial crash of 2008, so this data pre 2008 is skewed to a different reality.&nbsp; Since the Silver &quot;bottom&quot; of 8.88 in late 2008 the Silver Gold ratio appreciated&nbsp; rather nicely until the recent peak of Silver flat price last May when the GSR&nbsp; reached the 31 area. It proceeded to lose more and more purchasing power vs Gold&nbsp; especially since the SP downgrade of the US last summer. That was when gold&nbsp; became the darling of Wall St, and made parabolic moves vs Silver and Platinum. </p><p><br /></p><p>&nbsp;My statement was that Silver always has been and will contnue to be money.&nbsp; All&nbsp; currencies for most major countries were backed by gold and circulated in Silver&nbsp; from ancient times to about the 1960-1970&#039;s. The US fixed the GSR at 35:1 for&nbsp; many many years until Bretton Woods was cancelled by the president back in the&nbsp; late 1960&#039;s. Gold and Silver are still the only global currencies with no&nbsp; central banker. </p><p><br /></p><p>The current/fiat money system is based on the brainwashing of&nbsp; the general public to believe Gold and Silver are bubbles, ancient relics that&nbsp; serve no place in the money system. Is that why China, Turkey, India, Russia and&nbsp; many more I may have missed are increasing there Gold reserves at astounding&nbsp; rate over the past few years?&nbsp; For the fiat system to work the western&nbsp; countries, ie, US, UK ,EU must convince as many people as possible that Gold and&nbsp; Silver are not money</p><p>&nbsp;As a traderr I am paid daily to&nbsp; make decsions on qualitative ideas, patterns and trends I see in the&nbsp; PM&#039;s I have been doing it for a long time, so I guess I have done&nbsp; a lot more right than wrong. My statement was that since 2008 the birth of&nbsp; algo/quant funds who know nothing about the PM&#039;s have grown, that is why we see&nbsp; Silver and Gold move of 2-5% almost on a daily basis. Each day they sell the&nbsp; lows and buy the highs, and more and more are exiting the PM space. Soon more of&nbsp; the fundamentals will return, and the masses will realize that Dollars, Euro,&nbsp; Yen, and other major fiat currencies are being devalued eaach day, govt bonds&nbsp; are not a safe haven as they continue to build debt and spend more than they&nbsp; taake in, not to mention there is very limited upside in buying bonds or notes&nbsp; when they yield less than 1 or 2% as many major countires paper now yield those&nbsp; ZIRP rates and that is for 10 year paper, lets not even talk about short dated&nbsp; 90 day and 1 year stuff.</p><p><br /></p><p>By the way the swissie is pegged to the euro so last tear some sukceres got caught buying the swissie up at 1.40, thatcrashed when they pegged it the euro, money will not be flowing back into swissie until the ruo peg is dropped </p><p><br /></p><p>&nbsp;So I was just pointing out that Silver and Platinum&nbsp; are at extreme lows vs Gold right now.&nbsp; I would rather take my chances being&nbsp; long Silver at 28.50 than Apple stock at 575.00 or Priceline at 670.00. But,&nbsp; thats just my opinion. </p><p><br /></p><p>&nbsp;One last thing, regarding the EURO, any statement about&nbsp; the the metals having a correlation to the US DOLLAR or EURO is garbage. The&nbsp; financial media, IE Bubblevision, I won&#039;t name names, I am sure all of you watch&nbsp; and read various financial media, want you to believe that the dollar is up so&nbsp; gold is down or vice versa.&nbsp; They need to talk about something, so they always&nbsp; fall back on the dollar vs the euro vs the PM&#039;s.&nbsp; When referencing the DOLLAR,&nbsp; they refer to the ICE dollar index which is composed of 58% euro, 14% yen, 12%&nbsp; pound (uk), 9% cad $, 4% swedish krona, and 4% swissie.&nbsp; Now that Swissie is&nbsp; pegged to the Euro, those two make up more than 60%. (not really a good&nbsp; reference point in my opinion.) </p><p><br /></p><p>&nbsp;Facts you may not know:&nbsp; You never hear much&nbsp; reference about the Indian rupee, which was making historic lows for almost two&nbsp; weeks in a row in late may. The Euro has traded 1.29 vs the dollar at least one&nbsp; time for each of the past 10 years. In 2003 when the Euro first traded 1.29,&nbsp; Gold was 350.00, and Silver was about 5.00. </p><p><br /></p><p>So I think we can throw the Euro&nbsp; being up or down out the window in regards to PM prices.&nbsp; Did the recent Greek&nbsp; panic and flight from Spanish bonds have any effect on the PM move down in late&nbsp; May, absolutely. It is times of panic that the best trades, buying opportunities&nbsp; exist. Buying 1540 gold and 27.25 silver was so easy, I wish panics like that&nbsp; happened all the time.</p><p><br /></p><p>&nbsp; Conclusion: Not use my mobile device to type on CT&nbsp; anymore. Run spell check. I will continue to give you guys some investing nifo&nbsp; from a WS perspective, if you like.&nbsp; I will contnue to believe Silver prices are&nbsp; extremely low so long as the GSR in under 45:1.&nbsp; Once it gets back to ir original gold peg of 12:1 i think that will be near the hgih.</p><p><br /></p><p>&nbsp; I hope this thread clears up&nbsp; what I said before and is more reader friendly.&nbsp; I don&#039;t know any of you, nor do&nbsp; you know me, but we all must believe in Gold and Silver, as Im guessing that is&nbsp; what most of our coins are composed of.&nbsp; Have a nice Father&#039;s Day to all you&nbsp; dad&#039;s out there, I just became one so I am going to try and enjoy the rest of&nbsp; the day................Sincerely................Qsilve&nbsp; r007</p><p><br /></p><p>Read more: <a href="http://www.cointalk.com/t208135/#ixzz1y44nxP6A" class="internalLink ProxyLink" data-proxy-href="http://www.cointalk.com/t208135/#ixzz1y44nxP6A">http://www.cointalk.com/t208135/#ixzz1y44nxP6A</a>[/QUOTE]</p><p><br /></p>

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