Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Gold to Silver ratio?? WTHeck is best???
>
Reply to Thread
Message:
<p>[QUOTE="Blaubart, post: 2439480, member: 37498"]Here's another way to look at it.</p><p><br /></p><p>If a person has dollars, and they want to buy gold or silver, they likely want to wait for the price of gold or silver to be relatively low before they buy. They don't want to buy when the price is high.</p><p><br /></p><p>Now, think of USD as a commodity. The gold to silver ratio is very similar in nature to the gold to dollar ratio. Yes, the values of gold and silver are independent in many regards, but then again so are the values of gold and dollars.</p><p><br /></p><p>If one has the flexibility of trading between gold, silver, and dollars, why would it make sense to only focus on the values of gold to dollars, or silver to dollars?</p><p><br /></p><p>If the GSR drops to 38, why not "trade" silver for gold? Of course I'd probably want to investigate why the value of gold fell or the value of silver rose, and speculate on what I think they will do in the future, but at 38 I could essentially get twice as much gold for my silver as I can today.</p><p><br /></p><p>In the end, IMHO, the GSR is as valuable of a buy/hold/trade/sell indicator as the spot prices of gold and silver. People often say they'll buy an ounce of gold (with USD) if it falls below $x/oz., or they'll sell silver (for USD) if it goes above $x/oz.. In the case of selling silver to buy gold when the GSR falls below a certain number, just think of it as you're using silver (instead of USD) to pay for gold.[/QUOTE]</p><p><br /></p>
[QUOTE="Blaubart, post: 2439480, member: 37498"]Here's another way to look at it. If a person has dollars, and they want to buy gold or silver, they likely want to wait for the price of gold or silver to be relatively low before they buy. They don't want to buy when the price is high. Now, think of USD as a commodity. The gold to silver ratio is very similar in nature to the gold to dollar ratio. Yes, the values of gold and silver are independent in many regards, but then again so are the values of gold and dollars. If one has the flexibility of trading between gold, silver, and dollars, why would it make sense to only focus on the values of gold to dollars, or silver to dollars? If the GSR drops to 38, why not "trade" silver for gold? Of course I'd probably want to investigate why the value of gold fell or the value of silver rose, and speculate on what I think they will do in the future, but at 38 I could essentially get twice as much gold for my silver as I can today. In the end, IMHO, the GSR is as valuable of a buy/hold/trade/sell indicator as the spot prices of gold and silver. People often say they'll buy an ounce of gold (with USD) if it falls below $x/oz., or they'll sell silver (for USD) if it goes above $x/oz.. In the case of selling silver to buy gold when the GSR falls below a certain number, just think of it as you're using silver (instead of USD) to pay for gold.[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Gold to Silver ratio?? WTHeck is best???
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...