Gold:Silver Ratio hitting over 90!

Hi Friends,

The Gold Silver Ratio is an interesting beast. Perhaps obviously, it tells us how many ounces of silver we would need to trade for 1 ounce of gold. Historically, as in: going back millennia, the ratio has been about 15 to one, and this figure coincides with the approximate distribution of these metals in the Earth’s crust. In more recent times, like the last 120 years or so, it has averaged around 30:1 for a deep low, up to about 70:1 for a high high. Here’s the Kitco chart from a few minutes ago.

And here’s yesterday’s 24hr with a spike up above 91

Silver is getting smoked!!! Now there are myriad reasons why this is the case, but surely one of them is the fact that Central Banks have been gorging on gold as a safe haven asset. And though the price hasn’t yet moved very much, it seems obvious that the bid is in for gold, which means of course — you guessed it — softening Silver prices vs. Gold. And in my opinion, this is freaking excellent! Of course short term it feels like a kick in the ass, but looking out long-term there is potentially a very good play to be made here, if that is, owning more gold is something you aspire to.

In my humble opinion, and looking at the charts, it seems like buying Silver anywhere over 90 — where we’re at right now — is a no brainer if you have some investment money lying around. However, I also think we might see a spike above 100:1 again. Things are crazy out there, and it really looks like Money by fiat is not enjoying the same traction as it has in the past. And if this is the case, then Gold & Silver are looking pretty sparkly again.

Here’s the Au:Ag ratio over 100 years

It looks an awful lot like we’re approaching another top, the monkeys wanna’ get some last hammering in! Who knows how long it’s all gonna’ take? But if you like sound money and the benefits that come with making sound investment choices, then surely there’s some interest here for you.

Stack ‘em up and get on down!

Cheers! from @thedamus
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