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
Business Transition Simplified

Through his www.BusinessTransitionSimplified.com website and his Business Transition & Valuation Review newsletter Ian R. Campbell shares his perspectives on business transition, business valuation and world economic and financial markets influences on those two topics. A recognized business valuation and transition authority, he founded Toronto based Campbell Valuation Partners Limited (1976). He currently is working to bring his business valuation and transition experience to both business owners and their advisors in our new economic, business and financial markets normal.

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