Replies to post #34880 on GOLDBUGS AMEX Goldbugs Index (GOLD)

[starboy]

It's been said many times that silver is more volatile than gold, with silver having sharper and more acute spikes upward and drops downward than its golden metal relation.

Though it mostly starts behind gold and usually plays catchup to gold, in both up and down directions, and it usually exceeds gold, in both directions with larger, more dramatic movements.

[xero90]

Articles to read about silver and gold relationship:


Gold-Silver Ratio In Phase Space

http://www.zerohedge.com/news/2013-04-28/guest-post-gold-silver-ratio-phase-space




Observations for Gold Investors

True Cost Figures - Investors can see that true all-in costs continued to rise on a year-over-year basis, averaging $1308 for Q1FY13 versus $1298 for Q1FY12. Though we are starting to see costs level off on a sequential basis as costs dropped from $1401 in Q4FY13, and are only slightly up by 1% from the FY2012 average of $1296. This is showing us that the industry is beginning to get costs under control.

http://seekingalpha.com/article/1543782-the-true-all-in-cost-to-mine-gold-complete-2013-first-quarter-figures




Sprott’s arguments for new highs in the silver market can be boiled down to three factors: silver price manipulation, a gold-silver ratio that could start shifting back toward silver and demand that’s out-pacing supply.

(off timing wise obviously)

http://tradingstocks.me/why-eric-sprott-believes-silver-prices-will-triple-to-100-an-ounce-in-2012/



Is there any reason why silver, or gold, was viewed as money? Well, both metals are very rare. There are the so called "rare earth" elements, but they are actually quite abundant compared to gold and silver - just not as abundant as the base metals. So the monetary pair was given the status of the basis of exchange and the value ratio between them was set at around 15 - the gold/silver ratio (GSR). This ratio has become the subject of a lot of investor interest in our time as we try to value precious metals. There is geologic reason for the GSR being around 15 -17. Silver is 17 times more abundant in the earth's crust than gold on a parts per million basis.

http://seekingalpha.com/article/898151-is-silver-money


We live in a world of unstable digital fiat money, with 100’s of trillions of unstable “dollar” derivative bombs out there, which are considered “investment vehicles” by very rich entities. Yet, at current silver prices of $12-13 an ounce, the market value of annual global silver production is only about 8 billion dollars. For a precious metal that is also indispensible to society, this kind of pricing is ridiculous. Since silver is literally more important than gold, yet gold retains the sentimental favorite crown, watch for the “optimum gold/silver ratio” to eventually come to its new resting place around 5:1, with the potential for parity.



http://www.rapidtrends.com/the-optimum-gold-silver-ratio/













ref:

http://seekingalpha.com/article/2193623-gold-prices-and-real-interest-rates-part-ii
https://www.bullionvault.com/gold-news/gold-silver-ratio-021220127