The Gold Silver Ratio Explained

what is the Gold Silver Ratio, what does it mean, and why is it useful?

The gold sil­ver ratio explained

Today we are going to return to one of the old chest­nuts of the pre­cious
met­al invest­ing world and explain the rela­tion­ship between the two key
met­als gold and sil­ver. Specif­i­cal­ly we will give the answer to the
ques­tion of what is the Gold Sil­ver Ratio mean­ing?

As well you know, gold and sil­ver have been used for the last five
thou­sand years odd as “real mon­ey” and they have always had a tight
rela­tion­ship. Today in our mod­ern world the cen­tral plan­ers have weaned us
onto a paper worth­less cur­ren­cy (aka fake, or more tech­ni­cal­ly fiat
cur­ren­cy
), while they (I guar­an­tee you) are buy­ing and stor­ing up all the
gold and sil­ver they can find with both arms, and feet.

This rela­tion­ship is based on their scarci­ty and how much of it was com­ing
out of the ground — Obvi­ous­ly if one is much more com­mon (Sil­ver) than
the oth­er (Gold), then it is going to be worth less.

Through­out his­to­ry this rela­tion­ship (ratio) has remained fair­ly con­stant
at some­where between twelve to one, and six­teen to one.

So in oth­er words you would need twelve ounces of sil­ver to buy one ounce
of gold. Or Gold was twelve times more valu­able than sil­ver. Some­times you
would need six­teen ounces of Sil­ver to buy one ounce of Gold.

The Gold Silver Ratio Calculation Method

The ration between gold and Silver allows us to better understand market sentiment - and where it may be out of line

Gold Sil­ver Ratio Cal­cu­la­tion

So what is the Gold Sil­ver Ratio today? Well for that we sim­ply do the
sim­ple Gold Sil­ver Ratio Cal­cu­la­tion — Divide the cur­rent USD price of
Gold, into the cur­rent USD price for sil­ver. This gives us 1,350 divid­ed
by 22.6 which gives us a ratio of 59.7. So let’s call it 60! This is today
as of this writ­ing — This will change dras­ti­cal­ly in the future and I
invite you to revis­it this page five years from now!

This means that today we would need 60 ounces of Sil­ver to buy one sin­gle
ounce of Gold. That means the ratio is very high, and at some point it
will revert back to the his­tor­i­cal mean (as me men­tioned above, some­where
between twelve and six­teen).

See this ten year Gold Sil­ver ratio his­tor­i­cal chart here:

RagingGoldenBull.com_Gold-Silver-Ratio-10-Year-Chart

Start allo­cat­ing some of your invest­ing mon­ey today in some Sil­ver to
com­pli­ment your Gold in your per­son­al Pre­cious Met­als hold­ings — would be a
very smart thing to do. So don’t delay! Start to action that task today!

© Copy­right MMXIII RagingGoldenBull.com

Take Action — NOW!

This may be your last chance to get in on the Gold mar­ket. The prices are
com­ing down, and although they could drop as low as 1,000 USD/Oz it is most
unlike­ly.

Check out the one year chart here:

Gold gets hammered

Gold Char 1 year to date

If you are already in it could be seen as depress­ing — but on the oth­er
hand it is a great oppor­tu­ni­ty to stock up. So don’t delay, Buy Today!
Here we see Gold at almost a 30% dis­count from it’s peak. When it comes
back it will blast through the 1,800 bar­ri­er of old.

This is a long term game. This is not trad­ing, or a quick buck. This is
preser­va­tion of wealth and build­ing a future. You should be think­ing five
to ten years into the future from here.

What will you be doing and how well will you be liv­ing in 2018?

Think about that for a while and then “Take Action!”.

© Copy­right MMXIII RagingGoldenBull.com

Interesting Times …

The Chi­nese have an ancient curse which states:

May You Live in Inter­est­ing Times”

Well guess what? That’s exact­ly what you are doing right now, but maybe
you just haven’t noticed it. Or maybe you just accept it now as nor­mal.

Let me explain. We are liv­ing in the most unusu­al (read inter­est­ing) set
of finan­cial cir­cum­stances that this world have ever seen.

Maybe you have been so exposed to it and so famil­iar with it that you now
accept it as nor­mal. We no longer have a sound finan­cial sys­tem. It has
been replaced with the biggest Ponzi Scheme of all time. What is
con­sid­ered nor­mal or accept­able has shift­ed, slow­ly but sure­ly with the
pas­sage of time.

Cen­tral Bankers are to be blamed for all of these woes (ok TBTF banks
too). But con­tin­u­al­ly manip­u­lat­ing the sup­ply of mon­ey in their respec­tive
sys­tems, they have dilut­ed all our pre­cious mon­ey. so much so, that we are
near­ing the point of col­lapse, where it is just not cred­i­ble any­more.

Take some pre­cau­tions and make sure that you have at least 5 per­cent of
your net worth in some form of mate­r­i­al asset: Gold, Sil­ver, farm­land,
land, or some­thing. Of all Gold is prob­a­bly the eas­i­est to han­dle. That’s
why we rec­om­mend gold. It’s REAL MONEY!

So to recap. Don’t loose the faith and keep stackin’ …

© Copy­right MMXIII RagingGoldenBull.com

Jim Sinclair Meets The RagingGoldenBull in London

I just got­ta share this with you — Jim Sin­clair and the Rag­ing­Gold­en­Bull him­self. What a great hon­or!

Mr Jim Sinclair (Mr Gold) and Mr Farley Balasuriya (Chief GoldenBull) meeting in London June 2013

Mr Jim Sin­clair (Mr Gold) and Mr Far­ley Bal­a­suriya (Chief Gold­en­Bull) meet­ing in Lon­don June 2013

Was in Lon­don over the week­end and had the oppor­tu­ni­ty to talk to Mr. gold him­self — Mr Jim Sin­clair.

This was part of a closed door Lon­don Q&A Ses­sion on the very sen­si­tive top­ics of mon­ey and gold and where we are all head­ing.

The Two Core Mes­sages which rings through loud and clear are:

  • The End-Game is here now
  • Get out of the Sys­tem NOW!

I hope to elab­o­rate on his mes­sage and the oth­er things that were dis­cussed over the com­ing weeks on this blog, and in my emails (sub make sure your are reg­is­tered to our newslet­ter).

 

Ques­tion: Have you start­ed and what are you doing to pre­pare for the end-game that is cur­rent­ly upon us?

 

Check out the orig­i­nal here on Mr Sin­clairs JSMineset.com (about two thirds down page).

© Copy­right MMXIII RagingGoldenBull.com

Video — OffshoreTax Free Havens (how to do it)

Not direct­ly relat­ed to gold I know but how is it that big com­pa­nies like Apple, Ama­zon, Star­bucks, Microsoft, et al get away with pay­ing vir­tu­al­ly no tax on their mas­sive prof­its?

This robs the local gov­ern­ments of much need­ed financ­ing which has to be found from oth­er sources — usu­al­ly the likes of you and me to make up the short­fall — This is an utter­ly amaz­ing exposé of how the whole off­shore indus­try fits togeth­er.

Of-course, we could now do the same thing our­selves and take an an exam­ple from the fine cor­po­ra­tions of the world.

Enjoy!

© Copy­right MMXIII RagingGoldenBull.com

Howard Marks — Investing in Uncertain Times

Howard Marks (no, not the Gan­ga smug­gler) of Oak­tree Cap­i­tal has writ­ten some inter­est­ing (and haunt­ing­ly famil­iar) thoughts about invest­ing in uncer­tain times. The note are from the uni­ver­si­ty of oxford pri­vate equi­ty insti­tute pri­vate equi­ty forum 2013 on March 5.

There are some inter­est­ing ideas here about the macro set­ting of your strat­e­gy mov­ing for­ward from here. I think it would prove a use­ful exer­cise to review the points and check your own per­son­al answers. For exam­ple — Set­ting your strat­e­gy:

Do you expect pros­per­i­ty?

  • Yes -> lever­age, equi­ties, growth
  • No -> debt, val­ue, less lever­age

Which are you more con­cerned about los­ing?

  • Cap­i­tal
  • Oppor­tu­ni­ties

About you and your strat­e­gy:

  • Aggres­sive and risk bear­ing?
  • Cau­tion, con­ser­v­a­tive, risk con­trol

See the full pre­sen­ta­tion here (PDF for­mat): Howard Marks — Invest­ing in Uncer­tain Times

© Copy­right MMXIII RagingGoldenBull.com