Posted by ducati998 under silver
The 100yr ratio chart suggests that Silver recently achieved it’s high, and now we might see a reversion to the mean, which is approximately 50:1 This implies that Gold will once again lead and/or disconnect from the Silver price.
The 15:1 ratio is nothing more than a government implemented exchange rate. It in point of fact at the time grossly overvalued Silver as against Gold. This of course invoked Gresham’s Law, and Gold dutifully became scarce.
Anyhow, if Gold again becomes overvalued against Silver, then the Silver trade again becomes viable. Until then, I’d be staying away from an outright Silver trade. More possible would be Pair Trades of Silver Miners against the physical.