Post by jeffolie on Apr 25, 2011 13:04:12 GMT -6
gold=silver gains over last 9 years
9 years vs 9 months, parabolic?
Silver is not skyrocketing, parabolic when viewed over the last 9 years but is skyrocketing parabolic when viewed over the last 9 months. Gold is not parabolic at all in 9 years.
This is a perspective problem. Silver crashed in 2008 from $20 to $8.88 and held about $15 while gold did not crash so much in 2008.
Metals are a speculation against all fiat currencies not just the Dollar. Demand shifts for metals to Europeans when the Euro is in doubt, or then to Americans when the Dollar is in doubt, or to Asians when Vietnman, India & other Asia currencies are in doubt.
Many point to the gold to silver ratio. Bart posted that about 25 looks possible while others look to longer term ratios of lower numbers such as 15 or less.
Warning: Metals are a fad and the trendy hedge now, but that can change.
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The Dollar, Gold and Silver: A 20-Year Perspective
Over the past nine years Gold and Silver have had approximately the same gain, but the paths have been rather different, with Gold the more orderly of the two. Guessing the trajectory of precious metals is just that — a guess. There are so many significant unknowns: the end of QE2, the possible advent of a QE3, a political showdown over the debt ceiling, a potential inflationary spike, EU sovereign debt issues, to mention some of the most obvious.
The accelerating contour of Silver over the past several months does have bit of a bubble look. But we're living in highly uncertain times, and the speed and depth of the Silver correction, when it inevitably comes, may or may not create a peak that clearly passes as a bubble.
dshort.com/articles/2011/dollar-gold-silver-20-year-perspective.html
9 years vs 9 months, parabolic?
Silver is not skyrocketing, parabolic when viewed over the last 9 years but is skyrocketing parabolic when viewed over the last 9 months. Gold is not parabolic at all in 9 years.
This is a perspective problem. Silver crashed in 2008 from $20 to $8.88 and held about $15 while gold did not crash so much in 2008.
Metals are a speculation against all fiat currencies not just the Dollar. Demand shifts for metals to Europeans when the Euro is in doubt, or then to Americans when the Dollar is in doubt, or to Asians when Vietnman, India & other Asia currencies are in doubt.
Many point to the gold to silver ratio. Bart posted that about 25 looks possible while others look to longer term ratios of lower numbers such as 15 or less.
Warning: Metals are a fad and the trendy hedge now, but that can change.
==================================
The Dollar, Gold and Silver: A 20-Year Perspective
Over the past nine years Gold and Silver have had approximately the same gain, but the paths have been rather different, with Gold the more orderly of the two. Guessing the trajectory of precious metals is just that — a guess. There are so many significant unknowns: the end of QE2, the possible advent of a QE3, a political showdown over the debt ceiling, a potential inflationary spike, EU sovereign debt issues, to mention some of the most obvious.
The accelerating contour of Silver over the past several months does have bit of a bubble look. But we're living in highly uncertain times, and the speed and depth of the Silver correction, when it inevitably comes, may or may not create a peak that clearly passes as a bubble.
dshort.com/articles/2011/dollar-gold-silver-20-year-perspective.html