What's going on with silver?

Discussion of the Gold portion of the Permanent Portfolio

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Ad Orientem
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Re: What's going on with silver?

Post by Ad Orientem » Fri May 17, 2019 8:53 am

Silver Gold price ratio is closing in on 90:1.
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dualstow
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Re: What's going on with silver?

Post by dualstow » Fri May 17, 2019 10:28 am

Ad Orientem wrote:
Fri May 17, 2019 8:53 am
Silver Gold price ratio is closing in on 90:1.
Damnit, Jon, you're tempting me to buy! And I do absolutely nothing with this stuff except surprise a few restaurant servers and nieces/nephews. Terrible investment, the physical stuff.

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ochotona
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Re: What's going on with silver?

Post by ochotona » Sat May 18, 2019 7:08 am

Andrew Hecht wrote on Seeking Alpha:

"As the quarterly chart highlights, the range over the past forty-five years has been from 15.47 to 93.18 with an average of 54.325. When the price relationship moves below 55:1, silver tends to be historically expensive compared to the price of gold. The last time the ratio was below the midpoint was in 2012. When it is above the midpoint level, silver is historically cheap compared to gold and these days, what is cheap is getting cheaper by the day."

I think we'd need silver in the $13s for the ratio to hit 93. Like the 2015 low, $13.70.

As equities were crashing in 2008, silver went briefly below $10. Maybe people needed to sell stuff to pay obligations related to everything else crashing.

$10 silver, $1000 gold?
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