tag:blogger.com,1999:blog-5673441815180854503.post2137036065891428319..comments2023-09-10T09:54:59.309+01:00Comments on Screwtape Files: So, How Much Silver Is Really Out There Somewhere?Louis Cypherhttp://www.blogger.com/profile/07670126160101669248noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-5673441815180854503.post-42694867885518474842012-10-31T22:48:11.768+00:002012-10-31T22:48:11.768+00:00I made a video about this entry, highlighting the ...I made a video about this entry, highlighting the "silver will go extinct meme:"<br /><br />http://www.youtube.com/watch?v=3IDs0v5A3IU&feature=plcpfreegoldfuturisthttps://www.blogger.com/profile/00768423502138280251noreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-37633335010538193292012-09-07T02:00:12.772+01:002012-09-07T02:00:12.772+01:00Don't forget the CRA Report
Billions of ounces...Don't forget the CRA Report<br />Billions of ounces.....<br /><br />http://www.sharelynx.com/papers/CRAAGReport.phpNick Lairdhttps://www.blogger.com/profile/00190959495114164490noreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-82054304037102332562012-09-01T23:58:41.159+01:002012-09-01T23:58:41.159+01:00An alert reader informed me personally that some o...An alert reader informed me personally that some of my Troy Ounce to Metric Tonne conversions in the original posting were incorrect. I have now fixed them, and apologize for the sloppy math.Slow Loris Larryhttps://www.blogger.com/profile/03904505579567180085noreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-17834803270595863882012-08-30T04:04:32.605+01:002012-08-30T04:04:32.605+01:00This comment has been removed by the author.Jen Winslowhttps://www.blogger.com/profile/13902749056732993007noreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-92171145340565944192012-08-29T22:36:26.523+01:002012-08-29T22:36:26.523+01:00@ Michael
No, I wasn't predicting a 4:1 gold:...@ Michael<br /><br />No, I wasn't predicting a 4:1 gold:silver price ratio! I should no doubt have written "a 4:1 Ag:Au ratio implies that the price ratio <i>could</i> be similar." And indeed, KD is right as usual: The classic microeconomic ‘model’ says that supply versus demand 'determines' price in a 'free' market, but we don't seem to have one in silver these days.<br /><br />@ Greenworld<br /><br />It is probably never wise to be invested 100% in anything, except perhaps in exceptional circumstances, which may or may not be coming.<br /><br />My personal appraisal of the situation is that gold is the ultimate insurance, and as things get more and more unstable, one would be prudent to have a greater proportion of gold in one's secure possession. That said, there may also be a real need for many small pieces of easily recognizable silver, as in old coins, if things become chaotic at a local level.<br /><br />However, we are not at that point, yet, and as we know, in a normal 'bull' market, gold tends to lag behind silver in terms of fiat price increases, and the prices of select precious metal mining stocks can have even greater leverage to both. <br /><br />So, what would be an ideal distribution of Au, Ag, and good PM stocks? That of course depends on individual or family circumstances, and there is no 'one size fits all' solution. One common strategy is to trade gold for silver when the price ratio is high, as it still is now, and then gradually trade silver for gold when (or if) the price ratio approaches the historical monetary ratio. I would add that it would be wise to trade PM stocks for gold if their prices ever get into bubble territory one fine day.<br /><br />Of course, any conventional ‘Financial Advisor’ will tell you that a significant holding any of the above 'assets' is just plain foolish, if not downright stupid. But I doubt that very many Screwtape Files readers would agree. You need to figure these things out for yourself, as you seem to have done.<br />Slow Loris Larryhttps://www.blogger.com/profile/03904505579567180085noreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-16831265205202073652012-08-29T18:32:03.988+01:002012-08-29T18:32:03.988+01:00If one is concerned about monetary stability - as ...If one is concerned about monetary stability - as I know I am - then it just makes sense to hold a combination of physical gold and physical silver, perhaps complemented by other real assets as well. We are not in the precious metals business ourselves, but from talking to people who are what I have heard most commonly is that the ideal ratio of holdings is 60/40 silver to gold. Now, if the post here turns out to be accurate, then one could in theory end up bemoaning the fact that you are not 100% in silver. However, whilst this means one might miss out on some gains if silver truly goes parabolic, you'll still be able to capture a nice chunk of it plus your gold will go up as well. Here in the UK, our debt to GDP ratio is over 500pc, and it does not take a genius to understand that the vast majority of this debt will never be repaid except through currency debasement! <br /><a href="http://www.greenworldbvi.com/alternative-investments-options/agricultural-farmland/" rel="nofollow">farmland investment funds</a>Anonymoushttps://www.blogger.com/profile/12829375621188204129noreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-20850526039225525432012-08-29T12:43:27.268+01:002012-08-29T12:43:27.268+01:00SLL,
"a 4:1 Ag:Au ratio implies that the pri...SLL,<br /><br /><i>"a 4:1 Ag:Au ratio implies that the price ratio should be similar."</i><br /><br />I hope you are not serious.<br /><br />As KD said in a post about a different subject,<br /><br />"One Cannot Talk About Supply and Price Without The Third Piece Of the Puzzle: DEMAND"<br /><br />http://kiddynamitesworld.com/one-cannot-talk-about-supply-and-price-without-the-third-piece-of-the-puzzle-demand/<br />Michael Hhttps://www.blogger.com/profile/08900572113023618278noreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-90363330587362388232012-08-29T11:45:07.064+01:002012-08-29T11:45:07.064+01:00@ S Roche:
No, not a shortage of gold, only a dee...@ S Roche:<br /><br />No, not a shortage of gold, only a deep discount on the price of silver. <br /><br />Since both Ag and Au are monetary metals, a 4:1 Ag:Au ratio implies that the price ratio should be similar. A $400 price of silver in relation to a $1670 price of gold would be reasonable. Is that good enough for you?<br /><br />Slow Loris Larryhttps://www.blogger.com/profile/03904505579567180085noreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-83899438994225354932012-08-29T03:57:35.326+01:002012-08-29T03:57:35.326+01:00So...there is a shortage of gold!
Great work, tha...So...there is a shortage of gold!<br /><br />Great work, thanks.S Rochehttps://www.blogger.com/profile/18070519576321568415noreply@blogger.com