Tag Archives: strategy

The Gold Silver Ratio Explained

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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!

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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 …

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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

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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)

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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

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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