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<p>[QUOTE=&quot;Blaubart, post: 2020018, member: 37498&quot;]My take on the wildly varied silver to gold ratio is wherever you see such variability, there is the potential for profit.</p><p><br /></p><p>Does the GSR make sense?&nbsp; Yes, in that gold and silver are related in many regards, thus it makes as much sense as the gold to dollar or the silver to dollar ratio, which most bullion people follow, and much more sense than the lesser known gold to corn flakes ratio. </p><p><br /></p><p>Where I think it makes the most sense is for a person that has ample quantities of both metals on hand and their long term goal is to maximize the amount of precious metals they have on hand.&nbsp; When the ratio is higher than average, then trade (sell) gold in favor of silver.&nbsp; When the ratio is lower than average, then trade (sell) silver in favor of gold.&nbsp; Especially if one can do so while avoiding premiums, or better yet, charging premiums.&nbsp; One good thing about using the GSR to trade between gold and silver is that it simplifies things by completely ignoring inflation.</p><p><br /></p><p>Also, it is possible for silver to be &quot;consumed&quot;.&nbsp; Not literally of course, but relatively speaking.&nbsp; When they produce socks with nanoparticles of silver in them to prevent athletes&#039; foot, do you really think that silver is going to be recovered and recycled anytime in the near future?&nbsp; What about all the silver plated jewelry?&nbsp; How about all the toys that have microprocessors today?&nbsp; Are all of them going to be recycled as ewaste?&nbsp; Silver in bandages, creams, and ointments?&nbsp; Pressure treated wood?&nbsp; There is a long list of products that contain such small quantities of silver that recovering that silver is impractical at best, but these applications are essentially &quot;consuming&quot; large quantities of silver on the global scale.[/QUOTE]</p><p><br /></p>

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