Howdy folks,
I've been following the GSR for years now and I'm in the camp that it's skewed. Why? Various and sundry reasons. Here is a brief history.
https://www.investopedia.com/articles/investing/080316/historical-guide-goldsilver-ratio.aspRight now it's at 68 to 1. Recently it was over 100 to 1. Historically, until they went to fiat currencies, it was 15 to 1. Now, they talk about using it in your investing in PMs in the article, but I don't care for their method of going long on one and shorting the other. You're guessing the direction it's going to move AND you're shorting one of the PMs. Sketchy at best. More simple is to buy both metals in the same percentage as the ratio. If it's 100 to 1, you buy 100 ounces of silver to 1 ounce of gold. When it reverts to the mean and drops back to, let's say, 60 to 1, you buy 60 and 1, but your existing stack of silver from the previous purchase is worth much more. This approach works great with a DCA approach to acquiring a stash.
Of note, silver just broke thru $61 an ounce before falling back slightly. For the record, I bought my first roll of American Silver Eagles for a total of $85 including S&H when silver was around $4. As I write, a roll is around $1400 not including S&H. And BTW, I was still buying last week.
The issue with silver is the lack of supply in the face of enormous industrial demand. All solar, EVs, electronics, military technology, photography, medicine creates a huge demand that is not going away. Supply is drastically restricted because over 70% of mined silver is a by-product of other base metal mining (i.e. lead, zinc, copper). Oh, and try to bring a new silver mine online in the near term.
Pretty basic stuff, boys and girls.
and so it goes,
peace,
rono
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OJ