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<p>[QUOTE=&quot;Blaubart, post: 1900249, member: 37498&quot;]I get all that, but the fact remains that if gold drops down to $800/oz, and the GSR ratio is still 65, then silver will be at $12/oz.&nbsp; It doesn&#039;t matter if you base purchase decisions on the GSR ratio or not.&nbsp; $12/oz silver is still $12/oz silver.</p><p><br /></p><p>What if gold drops to $800/oz and silver drops at a faster rate?&nbsp; Then we might see the GSR at 80, which would mean $10/oz silver.&nbsp; Again, you don&#039;t have to pay attention to the GSR, because $10/oz silver would probably get your attention.</p><p><br /></p><p>If it went the other direction, and the GSR was at 50, then $800/oz gold would mean $16/oz silver.&nbsp; I would probably be buying gold because the price of gold is down 40%, while the price of silver is only down 20%.&nbsp; Not just because of the GSR, but because I don&#039;t have much gold in my stack and I would see this as a good opportunity to buy gold.</p><p><br /></p><p>So, I&#039;m not saying that I&#039;m basing my decision solely on the GSR, but rather that I&#039;m basing it on both the price of gold and silver and which I perceive is the best value for me.&nbsp; The GSR helps identify which commodity is rising or falling at a faster rate.&nbsp; If I was basing it on the GSR alone, then I would buy gold if the GSR was 20, even if it was at $2000/oz.&nbsp; Assuming I still had confidence in the economy at that point, I would likely be selling silver because it would be at $100/oz, and using the money to buy a piece of land I&#039;m considering buying right now.[/QUOTE]</p><p><br /></p>

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