Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Is It Time For Silver?
>
Reply to Thread
Message:
<p>[QUOTE="yakpoo, post: 3674120, member: 18157"]Yes there can! ...if they have a consistent value relationship to the denominated currency.</p><p><br /></p><p>When you speak of Gold, you speak of its price in some currency (in this case, the U.S. Dollar). When you speak of Silver, you speak of its price in some currency, also.</p><p><br /></p><p>Although there are different supply/demand dynamics between Gold and Silver, they both are constant to any fiat currency, at any moment in time. Therefore, it would stand to reason that, if both Gold and Silver were fairly valued, the difference in their respective supply/demand dynamic would be 100% reflected in their respective prices. Under that scenario, I would agree with you 100%.</p><p><br /></p><p>HOWEVER, the price of each commodity is also subject to the whimsy of speculators' anticipation of what events lie ahead.</p><p><br /></p><p>Although the mean may fluctuation by some small degree, the ratio of the two commodities oscillates within a range...each extreme representing (statistically), an imbalance of intrinsic value...of one or the other (unknown which).</p><p><br /></p><p>From what I've read, opposing Gold/Silver options (put/call) can be used to benefit from speculative distortion in the GSR. It's not about the price of Gold or the price of Silver...it's about their relationship. With opposing options, you make money when the GSR moves in your chosen direction, regardless of whether either commodity goes up or down.</p><p><br /></p><p>Technical analysis is really nothing more than trying to discover recurring patterns of human behavior...so it should lend itself well to the GSR. Don't think of it as a Gold/Silver relationship...think of it as a Gold/Silver/Dollar "Manage a Trois". <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>
[QUOTE="yakpoo, post: 3674120, member: 18157"]Yes there can! ...if they have a consistent value relationship to the denominated currency. When you speak of Gold, you speak of its price in some currency (in this case, the U.S. Dollar). When you speak of Silver, you speak of its price in some currency, also. Although there are different supply/demand dynamics between Gold and Silver, they both are constant to any fiat currency, at any moment in time. Therefore, it would stand to reason that, if both Gold and Silver were fairly valued, the difference in their respective supply/demand dynamic would be 100% reflected in their respective prices. Under that scenario, I would agree with you 100%. HOWEVER, the price of each commodity is also subject to the whimsy of speculators' anticipation of what events lie ahead. Although the mean may fluctuation by some small degree, the ratio of the two commodities oscillates within a range...each extreme representing (statistically), an imbalance of intrinsic value...of one or the other (unknown which). From what I've read, opposing Gold/Silver options (put/call) can be used to benefit from speculative distortion in the GSR. It's not about the price of Gold or the price of Silver...it's about their relationship. With opposing options, you make money when the GSR moves in your chosen direction, regardless of whether either commodity goes up or down. Technical analysis is really nothing more than trying to discover recurring patterns of human behavior...so it should lend itself well to the GSR. Don't think of it as a Gold/Silver relationship...think of it as a Gold/Silver/Dollar "Manage a Trois". :D[/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
>
Is It Time For Silver?
>
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...