Silver Monitoring Thread £ (GBP) only.

[Charliemouse]

Honest question from someone that hasn't been doing this very long.

What is the point of the gold/silver ratio?  Other than a fun derivative stat that people talk about (a lot), or a way to measure your own holdings, does it actually matter?

I mean they are two separately traded commodities.  They have completely different supply and demand chains.  So why does their ratio matter?  I guess historically people would trade between them as prices fluctuated, but these days there are hundreds of thousands of things people (institutions) could just as easily move money between.  And literally no one agrees on what it 'should' be.

So why measure it?

[bobski]

1 minute ago, Charliemouse said:

Honest question from someone that hasn't been doing this very long.

What is the point of the gold/silver ratio?  Other than a fun derivative stat that people talk about (a lot), or a way to measure your own holdings, does it actually matter?

I mean they are two separately traded commodities.  They have completely different supply and demand chains.  So why does their ratio matter?  I guess historically people would trade between them as prices fluctuated, but these days there are hundreds of thousands of things people (institutions) could just as easily move money between.  And literally no one agrees on what it 'should' be.

So why measure it?

I'm shooting blind here, but I always thought it was a way of indicating when to sell one and buy the other. 

[Charliemouse]

2 minutes ago, bobski said:

I'm shooting blind here, but I always thought it was a way of indicating when to sell one and buy the other. 

Sure. If those were the only things to buy.  Or if you were buying one with the other.

But if both go up, like now for example, it doesn't tell you anything about which to buy with fiat.

Just seems a pointless measure to me.

[bobski]

1 minute ago, Charliemouse said:

Sure. If those were the only things to buy.  Or if you were buying one with the other.

But if both go up, like now for example, it doesn't tell you anything about which to buy with fiat.

Just seems a pointless measure to me.

I meant, in an exchange from one to another. Not buying with fiat effectively (I know it's still going to be the middleman)

[katyc]

4 hours ago, Shuaib121 said:

Not been active on the forum for that long so I wouldn’t know. But I’ve learned to know the forum isn’t all it seems. Best to keep an open eye. And pretending they were a girl? What? Why?

My real name is Kenneth 

[katyc]

(Joking of course 😆)

That bell 🔚 pretending to be Barbie wound me up.

Made women look so thick!

But it's very rare you get chancers on here. They're soon worked out.

Edited May 18 by katyc
Spelling

[katyc]

Thank god for feedback to help avoid scams. But not always guaranteed if someone hasn't been around long unfortunately.

Edited May 18 by katyc

[ZRPMs]

9 minutes ago, Charliemouse said:

Honest question from someone that hasn't been doing this very long.

What is the point of the gold/silver ratio?  Other than a fun derivative stat that people talk about (a lot), or a way to measure your own holdings, does it actually matter?

I mean they are two separately traded commodities.  They have completely different supply and demand chains.  So why does their ratio matter?  I guess historically people would trade between them as prices fluctuated, but these days there are hundreds of thousands of things people (institutions) could just as easily move money between.  And literally no one agrees on what it 'should' be.

So why measure it?

I think it might make more sense to move from one to the other in parts of the world where they are on more of an equal footing. Here in the UK silver attracts the old Vodka and Tonic so the gold silver ratio would only be relevant if it took this in to account. 

[Chronos]

6 minutes ago, katyc said:

(Joking of course 😆)

Of course. Your real name is George.

[FriedrichVonHayek]

14 minutes ago, Charliemouse said:

Sure. If those were the only things to buy.  Or if you were buying one with the other.

But if both go up, like now for example, it doesn't tell you anything about which to buy with fiat.

Just seems a pointless measure to me.

Over long periods of time it is the cheapest way to buy Gold.

If you had an ounce of Gold and I had 90 ounces of Silver (which it has been quite often, and higher)

Now if and when it goes to 45/1, I can exchange those 90 ounces for 2 ounces of Gold.

I buy scrap Sterling, so for arguments sake my 90 ounces won't have cost me more than £1500, so in real terms I have paid around £750 per ounce for my Gold.

You could use the same strategy on Bullionvault also.

Edited May 18 by FriedrichVonHayek

[stefffana]

29 minutes ago, katyc said:

 😆

🔚

Made women look so thick!

I'm oooot!

[AOB]

43 minutes ago, Charliemouse said:

Honest question from someone that hasn't been doing this very long.

What is the point of the gold/silver ratio?  Other than a fun derivative stat that people talk about (a lot), or a way to measure your own holdings, does it actually matter?

I mean they are two separately traded commodities.  They have completely different supply and demand chains.  So why does their ratio matter?  I guess historically people would trade between them as prices fluctuated, but these days there are hundreds of thousands of things people (institutions) could just as easily move money between.  And literally no one agrees on what it 'should' be.

So why measure it?

I’m in the same boat, when I started I would always gauge my purchases around the current ratio.. but honestly I stopped very quickly - I ain’t traded from one metal to another enough to keep my stack close to the ratio.

I have steered more to buy what I like when I like.. oh and graded coins are my new found hobby 

[katyc]

2 hours ago, GoldDiggerDave said:

Guys tell me about your silver success stories.   Has it bought you a new car this year or paid for a family holiday?    Is your silver investment this year  going to pay off debt  or something simple like it's going to pay for the Parks monthly payment Christmas hamper this year?  

I honestly like to hear about other peoples success and more importantly how they achieve it, as of yet I have not come up with a system to successfully  make a meaningful profit from  silver myself.  

 

 

 

Sov vs silver kilo bought appx 2 years ago (I got more heavily in to PMs Jul 22 which by pure luck as it was a nice dip); are giving appx £78 profit on a sov vs £160 profit on a kg.

But, of course a kg will have meant a higher initial outlay of around £200/£250 - but that gives nearly double the profit today (my numbers in my example are very rough), point is, it's swings and roundabouts (also TSF members can fair better by avoiding main dealer premiums and VAT of course). Let's not forget silver could crash tomorrow and that kg loses £100. But we simply don't sell then; we wait. Both metals are great as long as we ensure to sell when it's profitable.

I could compare to many times where gold wins. Gold has won the most - by far - yes, but whether gold did better over the last 20/30/40 years doesn't mean it'll do better over the next decade. I'm not saying either will win. Both will be amazing because the economy is at a point of no return.

Also, both metals are allies, not enemies.

Diversity is good with any investing. I like tangible assets, including property, as it brings in (almost passive) income. I like ISAs (cash and stock ISAs) because the compound effect will be life changing eventually.

I like both gold and silver very much and I think everyone is entitlted to their opinion and  jokey jibes at silver is funny. But I don't think anyone should be ridiculed for investing in silver - especially on a website called The Silver Forum! Let's not forget silver has been manipulated (proven my millions in fines regularly to major banks), so that has masked it's value - which means only one thing - opportunity for the stackers.

The need, along with the shortage for silver, will eventually cause a wild difference between paper silver vs. physical prices. It's barely being mined (because of the price, it's not worth the effort to the miners). It means one thing: shortage. That guarantees moon whenever that may be. Just look at cocao and wheat as random examples how wildy things change during a shortage.

Silver will explode and the last few decades of the comedy show will end. The rate of China and India purchases just for solar alone is exploding as we speak (has for last few years). There's a huge shortage vs what's required. There are dozens more reasons, but @HonestMoneyGoldSilver's link a few pages back is a really good analysis.

[stefffana]

53 minutes ago, Charliemouse said:

Honest question from someone that hasn't been doing this very long.

What is the point of the gold/silver ratio?  Other than a fun derivative stat that people talk about (a lot), or a way to measure your own holdings, does it actually matter?

I mean they are two separately traded commodities.  They have completely different supply and demand chains.  So why does their ratio matter?  I guess historically people would trade between them as prices fluctuated, but these days there are hundreds of thousands of things people (institutions) could just as easily move money between.  And literally no one agrees on what it 'should' be.

So why measure it?

Have a look on this video from  6'.35" to the end, in my opinion it is the best explanation possible about the ratio silver:gold.

Historically it was a fair ratio of 16:1 silver to gold, when these metals were used in constitutional coinage. If that ratio would be kept, silver would be now @£119/oz.

 

[FriedrichVonHayek]

As you can see the Gold/Silver ratio doesn't trade above 80 very often and in a major bull run it can fall dramatically.

[Zhorro]

So, silver was up 5.86% on Friday for no apparent reason - are we ready for Smackdown Monday?

[treetop1280]

6 hours ago, Shuaib121 said:

Where there is gold there is no god. Greed turns people into animals. Cutthroat capitalism eventually becomes the order of the day.

It’s not  a ideal system , but it’s the best we have , and I agree it can be brutal, especially On the individual, , people ,and nations 

[stefffana]

2 minutes ago, Zhorro said:

So, silver was up 5.86% on Friday for no apparent reason - are we ready for Smackdown Monday?

I don't think so. My bet is for silver is £25/oz the new norm for next few months and then pushing slowly up to £30/oz by the end of the year.

Keep buying, guys!😘

 

[stefffana]

BTW, my new nickname is GURU.

[FriedrichVonHayek]

7 minutes ago, Zhorro said:

So, silver was up 5.86% on Friday for no apparent reason - are we ready for Smackdown Monday?

Depends on those Chinese in Shanghai!

[katyc]

4 minutes ago, stefffana said:

Keep buying, guys!😘

Alright Petra

[Thelonerangershorse]

56 minutes ago, bobski said:

I meant, in an exchange from one to another. Not buying with fiat effectively (I know it's still going to be the middleman)

Not always, for example I have a 1kg bar and would happily do a direct swap for a couple of sovs.

(Provided they're nice shiny new rose gold sovs, not those faded yellow tat)

[Agaupl]

2 hours ago, FriedrichVonHayek said:

Francis Hunt "the market sniper" expects it to fall to around 65 on this run.

Great minds and all 🤣

[MBTPSilver]

A very exciting evening, checking the silver price every 30 minutes. I did not expect to see $31 so quickly! It was a big jump so I think maybe some pullback on open, back to $30.

My stack is up 44%, so it is great to see after 5 years of naysaying from some. Won't be life-changing (unless we hit around £250 +... I wish 😂), but much better than if it had been sat in the bank, and I have some beautiful bits of silver to look at from time to time.

[ArgentSmith]

1 hour ago, Charliemouse said:

Honest question from someone that hasn't been doing this very long.

What is the point of the gold/silver ratio?  Other than a fun derivative stat that people talk about (a lot), or a way to measure your own holdings, does it actually matter?

I mean they are two separately traded commodities.  They have completely different supply and demand chains.  So why does their ratio matter?  I guess historically people would trade between them as prices fluctuated, but these days there are hundreds of thousands of things people (institutions) could just as easily move money between.  And literally no one agrees on what it 'should' be.

So why measure it?

I love ratios it gives a far clearer indication of relative price/value than using fiat as almost everything goes up in nominally when measured in fiat. Would you measure in inches if the inch shrank by 10% a year, eventually it would end up smaller than a millimeter.