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<p>[QUOTE=&quot;krispy, post: 1001064, member: 19065&quot;]<b>Lucy: </b></p><p><b><br /></b></p><p><b></b>I feel that it is almost lethally erroneous to follow the gold to silver ratio camp as only supply and demand will determine the price of either metal. As I said, any ratio can be devised between consumable commodities: gold to apples, silver to oranges... I also don&#039;t see the point in why one should look for either silver or gold to outperform the other, they both have enormous potential for continued growth and I would not (personally) choose one over the other, but rather hold both for unique reasons and unique potential (until something else should be a better investment and PMs liquidated), but above all, both will remain in demand for the foreseeable future or until something else could be agreed upon to replace them.</p><p><br /></p><p>Why does everyone only point to the gold to silver ratio? I think because it&#039;s a device for selling one or the other PM and overlooking the supply and demand factors that truly set their price. The link you provided is an extensive and exhausting sales pitch to me. I&#039;ve heard the message before, seen the charts and prefer not to follow the PM ratio angle. Commodities are commodities: silver, gold, apples, oranges, grains, oil, nat. gas, et al. They can all be developed into charts against one another by analysts (or bloggers, journalists...) to suit their message, which I don&#039;t really buy into, a sales pitch that&#039;s not transparent enough to include the simple factors of supply and demand. </p><p><br /></p><p>Elaine, on occasion, bears some reasoning in her posts by sharing a comparison of gold to the djia. Others agree with what that illustrates and look for the PoG to continue rising and to out perform equities as the PoG closes in on a one-to-one ratio to the dow (dow dropping to meet PoG), that is, they look to see how many ounces of gold it would take you to buy one share of the Dow. There are charts and plenty of analysis written about this and why it is important, here&#039;s one link from <a href="http://news.goldseek.com/GoldSeek/1262971500.php" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://news.goldseek.com/GoldSeek/1262971500.php" rel="nofollow">Goldseek</a> (you can skip to the bottom for a quick rundown on the analysis if you don&#039;t have time to read the charts and other comments). </p><p><br /></p><p>I hope that sheds more light on why I personally don&#039;t follow commodity to commodity ratios and I hope this offers further insight or at least a direction to another device for measuring the potential of PMs and the anticipation of them greatly continuing to perform until a balance is reached in the markets. </p><p><br /></p><p>Also, please note that I am just as much a student of all of this as are many others looking for answers and indicators of what to do, even after years of reading about, watching metals, the markets, trying to comprehend charts and reports. I stand to be corrected if I am wrong and to learn from others&#039; points of views here too. :smile[/QUOTE]</p><p><br /></p>

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