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idle and fond bondage

The reality of the Gold/Silver Ratio

Hard money advocates can wish for all they like. Cruel reality is a greatly altered supply, plus variable demand characteristics that depend on “stackers” to keep the price high. Now that they’re all in behind Covidiot Sprott, there’s no Central Bank to keep sucking up the excess supply. When recession hits, the last thing on people’s minds is speculating on lumps of metal.

Sorry folks, silver is never going back to your mythical 15/1 or 35/1 or 50/1 or whatever it was last time, you have had the bottom of your spike and we’re now reverting to the mean, maybe 90X or so. Feel free to kill the messenger, however try not to avoid the truth too long. Bad for your financial health to trust in the Neumeyers and Middelkoops of this world.

7 Comments

    True, any inherent ratio is a myth. 10:1 is touted because of relative Ag:Au abundance; 15:1 because it lasted to the end of US bimetallic standard. Relative abundance means nothing: both Pt and Pd are rarer than Au. A bimetallic standard is just price fixing, so when a surfeit of Ag was mined Nevada, Ag had to be demonetized (cue William Jennings Bryan). If there’s big recession, anything is possible. But when Au does well, Ag typically outperforms, so don’t get too cocky.

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      “Don’t get cocky” from a hard metals advocate is like hearing “Don’t be arrogant” from Orange Stupid.

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    But you are making “predictions” based on looking at a current chart containing fancy moving averages and other TA smoke and mirrors.

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    The only way the ratio gets even close to 50:1 is a true industrial and manufacturing turn around in the US. It can happen in the next couple of years, but.. anything less than 50:1 is long gone.

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    Ag:Au ratio of 15:1??? That is so fantastical and absurd, it makes my little brain hurt.

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    I just don’t see gold dropping to $150 to make this happen.

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    Anything is possible with the banksters in control. 50to1, no prob…if they ordain it.

    Reply

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