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- - Which PM is out of whack? (http://goldismoney.info/forums/showthread.php?t=318206)

SAUM | 10-31-2008 08:38 PM
Which PM is out of whack? It's been said a million times that in 1964 three silver dimes would buy a gallon of gas. As of today three silver dimes have a value of $2.11, I can buy gas in my town for $2.15. The current gold to silver ratio is 74:1. Statistically speaking, isn't gold too high rather than silver too low?

igorthesmall | 10-31-2008 10:04 PM
Re: Which PM is out of whack? Maybe oil is too low. Oil production is dropping, but dont tell all those people in India and China who are dreaming of buying a car someday.

WAoG | 10-31-2008 10:13 PM
Re: Which PM is out of whack? Silver is now rare. Three silver dime should pay three good workers for a day. So 100 to 250++ bucks a dime would be fair.

Saul Mine | 11-01-2008 12:40 AM
Re: Which PM is out of whack? Quote:
Originally Posted by pimples (Post 1390278) yes, the paper price is saying 75 to 1 , but the natural selling price is close to inline at 57 to 1. gold at apmex is $800 and silver is around $14 that silver comex price is the bad number.....guess we'll see how that is resolved.
It depends on what form of silver you want. I have been selling gold and buying silver this week and my ratio is about 75, but I am not buying SAE or Maples or any of the pretty coins. For those the ratio is 54.

AuNuggets | 11-06-2008 11:08 AM
Re: Which PM is out of whack? All the ratio tells you is which is the better "relative" buy between gold and silver at the moment. They are two distinctly different markets. It's like comparing the potato to baseball market ratio. There are times when they move together in tandem, and other times drift off in opposite directions. Through the years I have been involved in metals, I've seen everything from the "official" 16:1 ratio on up well past the 100:1 ratio. Other than the "natural ratio" of gold to silver quantities as they are found in nature, there is no "set in stone" gold to silver ratio, and even using the natural ratio is haphazard at best due to recoverability and production issues. So is gold priced "too high" while silver is priced "too low" ? Market price tends to be a "perfect indicator" as we are seeing in the current environment........ If you are willing to pay the price, you can find/buy the metals. "Price" is the great equalizer between supply and demand.

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