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m3rlin

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    m3rlin reacted to silversky in Gold Monitoring Thread £ GBP only   
    Somewhat euphemistic language.  Hard landing...  It's mountainous terrain with reported visibility of 5metres which would be extreme.  Not too clever flying helicopters in mountainous terrain IMC.  In fact it's retarded.  I'm sure the details being reported are all muddled up.  Time will tell what actually happened.
    There are lots of silly things done in aviation when it comes to leaders and politics.  Many cases of pressing on to complete a mission rather than abandoning it sensibly due to weather.  Perhaps this is just another example.  Or perhaps the weather wasn't as bad as claimed.  Who knows at this point.
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    m3rlin reacted to Spyder in GOLD DEALS - (UK & Europe) See a deal, post it here   
    On half, I will always double the price and decide.  Do I think £32 over spot (sovereign) is a good deal, I would say not so I do not buy.   
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    m3rlin reacted to GoldDiggerDave in Gold Monitoring Thread £ GBP only   
    Time to upset the gold stackers...........🤣   
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    m3rlin reacted to HonestMoneyGoldSilver in Silver Monitoring Thread £ (GBP) only.   
    TL:DR: The ratio of gold:silver in earth's crust is between 15 and 20:1 (intrinsic value). Divergences from this ratio are (derivative financial) market values. Studying the difference between the two can yield many insights
    Gold and silver are money (monetary metals, gold standard, sterling standard, etc). If we want to value money fairly then the gold:silver ratio tells us which one is overvalued or undervalued relative to their naturally occurring abundance
    While it's true that gold and silver are different elements with different applications, gold and silver deposits usually occur together (electrum) with silver usually being considered a by-product of gold mining or vice-versa depending on the geology. It's uncommon to find either gold or silver in isolation thus the two are linked in terms of production and share a lot of the same supply chains and logistics. 
    You are correct that nobody agrees what the g:s "should be" but we know what it is in terms of the planet
    If we look back over history many of the most powerful rulers have attempted to fix the ratio. The Egyptians had it 1:1. The Romans had it 12:1. The Revolutionary Americans had it 15:1. The divergence in the ratio became a thing after the end of the British Sterling standard and the end of the American gold standard. When everything went to paper/derivatives and there were abrupt changes in regulation, the ratio varied wildly. (Intrinsic vs Market Value)
    Intrinsic Value vs. Market Value
    Intrinsic value suggests that an asset's value is inherently based on its natural characteristics and scarcity. For gold and silver this would imply their value should align with their natural abundance ratio. However, market value is determined by supply and demand dynamics, influenced by various factors such as industrial use, investor sentiment and economic policies.
    Industrial demand, coupled with speculative trading, can cause significant fluctuations in silver's market price, often diverging from its intrinsic value
    If we are being hard liners like the governments of yesteryear, we should set the ratio somewhere in the 15 to 20:1 range. As many analysts have pointed out lately, that ratio might come back but there are two ways it can happen - either gold plummets or silver appreciates. Most see gold plummeting as being both unlikely and undesirable, therefore we have to adjust our expectations of what the ratio "should be". If we use simple measures an acceptable modern ratio might be in the 35 or 50-1 range.
    We could also explain a higher ratio by showing that silver is slightly more difficult thus expensive to mine and refine than gold - gold being a wonderfully chemically stable element that refuses to be corroded, oxidised or tarnished. Gold is denser and more malleable than silver. Silver is also a wonder element with unique properties and these properties are why gold and silver are important, it just so happens the properties of silver make it more volatile both in the physical and financial world. 
    The ratio is important because it is a measure of fair value, it's like asking why do people care to measure gold/GBP or GBP/USD? They are measures of fair/relative value, intrinsic value vs market value. For instance the GBP/USD hit a record low under Liz Truss, did that make the intrinsic value of houses in England go down or was it just a temporal fluctuation that had little true explanatory power in the physical world?
    Most "true money" advocates like stackers favour intrinsic value > market value as the properties of one are set by the laws of physics while the properties of the other are set by the laws of man. Natural law tends to be a better and more independent arbiter of truth and fairness than human law. 
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