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<p>[QUOTE=&quot;Rono, post: 1158524, member: 6492&quot;]Howdy folks,</p><p><br /></p><p>With regard to using the gold/silver ratio as a metric in buy/sell decisions, I&#039;m going to have to side with Lucy.&nbsp; No disrespect to cloud, fatima or bodie and I&#039;ll even concede that the GSR is articificial.&nbsp; Cripes it was imposed by Newton when he was over the mint.&nbsp;&nbsp; </p><p><br /></p><p>You folks are missing the point.&nbsp; It doesn&#039;t matter if the GSR is true or real or based upon facts - all that matters is that enough people believe that it matters and behave as if it does.&nbsp;&nbsp; It&#039;s the behavior of humans that move markets and what they believe to be true is what they base their investment decisions upon.</p><p><br /></p><p>As I pointed out in another thread, it&#039;s analogous to the 50 and 200 DMAs and even Santa Claus.&nbsp; The 50 and 200 DMA are used in charting stocks and Technical Analysis and their movements and interactions are the basis of many buy/sell decisions (e.g. the golden cross).&nbsp; Now are 50 and 200 important for any reason?&nbsp; Nope.&nbsp; Only that they are what most people use that do this stuff and thereforem, the fact that they use it give it meaning - they give it life.&nbsp; Same/same with Santa.&nbsp;&nbsp; Not real, but how many believers acting as if he were - or pretending he&#039;s real for their kids - and spending a lot of money on the falsehood of Santa Claus.</p><p><br /></p><p>Hey, no doubt that in the long run, the truth will out and everything will revert to the mean but as Keynes said, &#039;in the long run, we&#039;ll all be dead&#039;.&nbsp; &nbsp; Where the action is in in the short run and the divergences from the norm.&nbsp;&nbsp; </p><p><br /></p><p>And there is also no doubt that decisions makers are always seeking the best and most current data upon which to base their decisions.&nbsp; &nbsp; Doesn&#039;t mean they&#039;ll get it and doesn&#039;t mean the information isn&#039;t false or misleading.&nbsp;&nbsp; And it doesn&#039;t mean they don&#039;t get swept up in the given mania of the moment.&nbsp;&nbsp; We&#039;ve witnessed it so many times - dot.com, real estate, now gold and silver in recent times.&nbsp;&nbsp; Countless examples in history.&nbsp; </p><p><br /></p><p>As an investor, what do I care if folks are being stupid?&nbsp; I&#039;m trying to make money.&nbsp; </p><p><br /></p><p>And this is the nut.&nbsp;&nbsp; With the investing crowd that I&#039;ve been chatting with online for over 10 years, I&#039;ve been called all kinds of crazy for investing in pm&#039;s.&nbsp; They&#039;ve sited stats and made arguements proving I was nuts and that gold and silver were terrible investments.&nbsp;&nbsp; Hey, you&#039;ve heard all their stuff.&nbsp;&nbsp; Since 2002, how many people have you told to buy gold and silver.&nbsp; How many did?&nbsp;&nbsp; How many looked at you like some sort of rabid dog?</p><p><br /></p><p>just some thoughts,</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>

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