The Gold:Silver Price Ratio

By: Ian Campbell | Fri, Apr 8, 2011
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An article this morning says 'Am I being too conservative with my silver price target?' - reading time 3 minutes. In the article, the author states his current physical silver price target to be U.S.$300 per ounce, which he bases on his long-term physical gold price target of U.S.$5,000 per ounce, and what he (and many other authors) refer to as the historic gold/silver price ratio of 16 (divide 5,000 by 16, and you get 312.5). As someone who owns some physical silver, I certainly would like to simply sit back today and watch the first round of the Masters Golf Tournament, secure in the knowledge that based on this article my economic future and that of my family is secure. That said, while I plan to watch snippets of the Masters today, I will be spending most of it in front of my computer.

My reasons:

As a result of the foregoing I give no weight to predictions based all or in part on what I see today as a meaningless 1:16 ratio. Think hard about this, and then let me know your thoughts - particularly if you disagree with me, by clicking here and commenting on my views.

 


 

Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Economic Straight Talk

Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
* Canadian Institute of Chartered Business Valuators
** through The Ian R. Campbell Research Initiative

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/