RE: Silver Gold and Cryptos - Getting out strategy

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Silver Gold and Cryptos - Getting out strategy

in gold •  7 years ago 

Housing prices are a good measure. For those in the US I think the DOW/Gold ratio may be useful also. The AU:AG ratio is important to watch as well. I believe on the mining side the natural ratio out of the ground right now is in the 9-10:1 range. Of course the worlds mined gold still exists and is primarily monetary and the above ground silver left in the world is rare as most of it is used up in industry. I do think the price of gold is a natural cap for silver. If the AU:AG ratio ever hit 1:1 in a panic type situation that is, as gold can perform most of the industrial functions of silver if silver was to get that expensive.

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The people saying 1:1 say the silver is spent, technically its still here but we throw it out such X-ray scans, electronic junk, i think as silver gets more valuable people will realise that we need better techniques that are cheap to recycle it and thats why i dont see it getting there except temporarily ; if this were to happen id trade all my silver same day for gold.

Agreed it would be temporary. Even with significant increases in price I still don't see recycling being economically viable as silver's use is in such miniscule quantities throughout billions of devices.