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What Is To Become Of The Gold/Silver Ratio in 2015?

The gold to silver ratio, simply put, is the ounces of silver needed to purchase one ounce of gold.  As the price of all other goods and services fluctuate, the world currencies of silver and gold fluctuate as well. Importantly, knowing this ratio allows investors to determine the optimal time to purchase either gold or silver. The big question is whether the ratio will increase or decrease coming into the future? This is constantly one of the most intriguing questions among gold and silver investors.

It is a very opinionated subject, what is to become of this ratio as we enter 2015. As we all know, accurate predicting the future time-after-time is an impossible task. Conversely, one useful method of looking into the future is to take a glance into history.

In the past 60 days, the ratio has risen from about 66 to a lingering 70. Although, before the ratio reached its current mark, it has been on a nearly continuous fluctuation. This is yet another reason why we, as a company, are unable to predict the future. Although, we are able to advise you, as an investor, in the right direction based on past and present analysis.

The records of the ratio reach as far back as January of 1915, when the ratio was introduced to the investing world at a mark of about 37 to 1. Since its introduction, the ratio has been on a roller coaster like ride of ups and downs with a peak of about 100, and a low that we have met a few times in 1919, 1968 and in December of 1979, this low was about 15.

A strange fact about the ratio historically; in research (macrotrands.net) I have noticed that between the years of 1915 to 1946 and 1975 to 1997, the peaks and valleys of the ratio are almost exact replicas of one another. As some would say, history repeats itself!

With this being said, it is possible that the ratio will continue to repeat in history’s footsteps. If this were true, we would be seeing a steady decline of the ratio in the years to come, inching silver closer and closer to meeting the price of gold. If this were to happen, the portfolio values of those who have been stocking up on silver would raise immensely.

Many investors and advisers have their own respective opinions on the subject. Dave Kranzler, for instance, finds that silver will be making a big move in the near future, bringing the ratio much lower. Kranzler, who specializes in investment research dynamics, states that “the gold to silver ratio is telling us that there is a high probability that gold and silver are starting to embark on a big bull market move higher”. He also explains “if you like a little leverage with your market play, silver should outperform gold.” While on the other hand, a newsletter from stockcharts.com has called for an eventual move back to past tops, meaning gold could expand its gain on silver.

Silver dealers across the United States have listed the reasons they believe silver will close the gap on gold:

  • Industrial demand for silver has recovered, primarily driven by the strength of the electrical and electronics sector.
  • Based on true supply, there is much more gold available above and below ground than silver.
  • Silver’s scarcity, since it is primarily mined as a by-product of gold, could cause the ratio to reverse course, making silver more valuable than gold.

Most advisers believe that history will indeed repeat itself in the coming months. Some oppose that history always repeats itself in this case. As many investors seek for guidance, based on recent analysis, the ratio is expected to shrink in coming months and years, but predictions are never certain.

The future is truly unpredictable. Included are facts and opinions that we hope to be taken as a guide, but not a sure pathway. For a full report on the gold silver ratio, as well as free advice on how you could profit from one or both of those metals, call GoldSilver.org today at (800) 394-3337 and let one of our non-commissioned experts give you a free portfolio evaluation.

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