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
Comments
OJ
Silver just pasted $67 with gold at $4359. The GSR is around 65 to 1.
Here are a couple of articles from Kitco, one by a bull and one by a TA bear.
https://www.kitco.com/news/article/2025-12-17/gold-silver-soars-record-high-safe-haven-bids
https://www.kitco.com/news/article/2025-12-16/gold-and-silver-appear-be-entering-final-act-2026-years-long-bear-market
TA may apply to gold but I don't feel as much to silver. Silver is riding the Fundamentals expressed by industrial demand and central bank debasement trades. That said, there is a LOT of speculation and conspiracy thinking circulating. I actually am not a conspiracy type. Feh. The market is like going to a casino. The house has an edge. Deal with it. In the market, any market, a person with the ability of manipulating it in their favor . . . will. Learned that reading Jesse Livermore. However, currently the conspiracy theories are insane.
Comex is running out of physical silver and in order not to default will change the rules in a way similar to what they did to the Hunt Bros. Trading restrictions, etc. Mexico has taken control of silver exports. China imposes export controls Jan 1. Last month we declared silver a strategic mineral. Comex will greatly depress the paper price of silver, while the world price for physical silver continues to soar. This is the end of both Comex and paper bullion pricing. Lastly, this is the end to fiat currencies around the world. We do know for a fact that much of the world no longer trusts us as much and are reducing their holdings of dollars and replacing them with various and sundry instruments . . . some percentage of which are PMs.
Pick your poison but dear God do your homework. BTW, I'm still stacking. And WETF you do, please don't sell.
and so it goes,
peace,
rono