Good thoughts, and I concur that precious metals should be part of an investment portfolio, although I prefer to own the actual metals, not “paper” silver in a traditional portfolio, so I keep those separate. As you said in your previous post, precious metals shouldn’t be seen as an investment anyway.
FWIW, the Coinage Act of 1792 set the silver-to-gold ratio for the U.S. at 15:1, which is slightly higher than the historical ratio you cite. These days, traders usually consider a ratio of 80:1 or higher an indicator that silver is undervalued, so current ratios definitely align with that rule of thumb.
I refuse to touch "paper silver". I owned $PSLV as it's the only one with actual allocated silver to back it, but have since gotten out of that.
Current Gold:Silver ratio is over 90:1 and that's after a recent run in silver that finally got it below 100:1. Silver price could 2-3x before it's anywhere close to a reasonable ratio. It's also widely reported that Silver is a heavily manipulated commodity market with multiple examples of bankers getting caught spoofing and manipulating it. As long as the profits are larger than the fines they will keep doing it too. Whole rabbit holes you could go down doing that research...
Good thoughts, and I concur that precious metals should be part of an investment portfolio, although I prefer to own the actual metals, not “paper” silver in a traditional portfolio, so I keep those separate. As you said in your previous post, precious metals shouldn’t be seen as an investment anyway.
FWIW, the Coinage Act of 1792 set the silver-to-gold ratio for the U.S. at 15:1, which is slightly higher than the historical ratio you cite. These days, traders usually consider a ratio of 80:1 or higher an indicator that silver is undervalued, so current ratios definitely align with that rule of thumb.
I refuse to touch "paper silver". I owned $PSLV as it's the only one with actual allocated silver to back it, but have since gotten out of that.
Current Gold:Silver ratio is over 90:1 and that's after a recent run in silver that finally got it below 100:1. Silver price could 2-3x before it's anywhere close to a reasonable ratio. It's also widely reported that Silver is a heavily manipulated commodity market with multiple examples of bankers getting caught spoofing and manipulating it. As long as the profits are larger than the fines they will keep doing it too. Whole rabbit holes you could go down doing that research...