Gold Silver Ratio: Silver Ready to Rise Versus Gold?


Gold Survival Gold Article Updates:

May 22, 2013

This Week:

  • NZ Dollar Gold and Silver: Update After the Fall
  • Gold Silver ratio: Silver ready to rise versus gold?


In case you missed it Monday morning saw a sharp fall for gold but more especially for silver. This prompted us to yesterday take an updated look at the 2 metals following recent articles we’ve written separately on each of them, following the plunge last month. 

So head over to check out this weeks feature article. You get 2 for the price of one, as we look at both gold and silver.

It is a bit of a chart-a-thon (6 of them in total) including a comparison of the USD and NZD prices of both metals. So we won’t bother with any charts in todays email as there’s plenty of them in the article. As always you can see todays spot prices (and product prices) over in the sidebar to the right.

The article also contains our guess as to where to from here. As always take from it what you may. As we’ve said before our mumblings are worth every penny you pay for them – given they are free, well, you get the picture. 

NZ Dollar Gold and Silver: Update After the Fall

On top of our feature article we have a bit of a video-fest for you this week.

Firstly is an entertaining presentation from Peter Schiff from the recent Las Vegas Money Show. 

Schiff spins a good yarn about why currently this looks and feels a lot like 2006 on the back of cheap money from the Fed. Along with quite a bit else in his half hour presentation which we get to see for free.

Peter Schiff – Why 2013 Looks a Lot Like 2006 Again


Then we have a short interview with Sandeep Jaitly on the Keiser Report. 

We always pay close attention to Sandeep as we’ve learnt a few things from him over the years. Be it over a glass of beer after one of Professor Fekete’s events here in NZ or from an interview like this one…

Sandeep Jaitly: Why We’re Deluded About the “Price of Gold”

Gold Silver ratio: Silver ready to rise versus gold?

We haven’t had a look at a long term chart of the gold silver ratio for a while so we’ve fired up stockcharts today and had a look. 

(If you’re new, the gold silver ratio is simply how many ounces of silver you can buy with one ounce of gold. Here’s an old article with quite a bit of info on the gold silver ratio: The Gold Silver Ratio – Another Look).

We’ve drawn a couple of lines showing a possible downtrend channel that the ratio may be in over the last 10 years. If this trend is in place then currently we may be at or close to a top in the ratio. 


Silver could be about to gain on gold after falling against it since the high in silver in 2011 (i.e. the low in the ratio around 30 in 2011).

Some gold and silver holders use the ratio as a means to determine possible times to alter the percentages of each metal they own. Albeit only as a rough indicator.  

So when the ratio reaches extremes in either direction it may be the time to sell some of one metal and trade it for the other.  Or even more simply to just buy more of one than the other.  

i.e.  In late 2008 when the ratio blasted from 50 to 80 some would have taken this as an indicator of a good time to lighten up on gold and own some more silver.  

Alternatively when the ratio hit an extreme long term low of 30 in 2008 some would have taken this as a good time to go more heavily for gold or even to sell some silver after the big run ups and trade it for some gold.

So on this basis now may be a better time to buy silver. “May” of course being the operative word. Someone else could make a good argument for the ratio to keep rising above 90 from here!

As mentioned in the old article linked above you can’t make too much of the ratio. 

However we do find it is interesting that the high in the ratio back in 2008 came at the low in the price of both metals. So perhaps a high in the ratio could be an indicator of nearing a low in the metals ala 2008?

So if you’re liking the look of the ratio as an indicator of a low in both metals or especially in silver then get in touch:

1. Email:

2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)

Have a golden week! Glenn (and David) Ph: 0800 888 465 From outside NZ: +64 9 281 3898 email: Follow us on Twitter Find us on Facebook G+   This Weeks Articles    
Where to for the NZ Dollar?
NZ Dollar?2013-05-14 23:00:31-04
  Gold Survival Gold Article Updates: May 15, 2013 This Week: Negativity Remains High Where to for the NZ Dollar? Professor Fekete in Laymans Terms The End of QE? Negativity Remains High We’ve had a few people unsubscribing lately with comments like “I’ve lost $45k in silver and don’t want a reminder of it when […] read more…
Peter Schiff – Why 2013 Looks a Lot Like 2006 Again
Peter Schiff2013-05-20 21:22:25-04
This is an entertaining video of Peter Schiff’s presentation at the recent 2013 Money Show in Las Vegas. Schiff outlines why 2013 looks a lot like 2006 again with real estate and stock prices rising on the back of cheap money. He covers a lot of ground including: What assets will be dumped this time […] read more…
NZ Dollar Gold and Silver: Update After the Fall
Update2013-05-21 20:29:32-04
Since the price plunge last month we’ve posted a couple of articles, one on gold and more recently one on silver.  So we thought it time to revisit both to see how things have panned out, especially given the further sharp dive both metals took on Monday. We’ve put together a couple of short term […] read more…
Sandeep Jaitly: Why We’re Deluded About the “Price of Gold”
2013-05-21 21:15:36-04
Following on from the interview transcript with Professor Fekete from the Daily Bell last week, this week on the Keiser Report, his original student Sandeep Jaitly is interviewed. Sandeep elaborates on the Professors comment on the Daily Bell that the price of gold is headed for extinction. Also covered in the video is: Why we’re […] read more…    

The Legal stuff – Disclaimer:

We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.

To see how the Gold Silver Ratio is calculated, how it can be used, and where it might head to next see: What is the Gold/Silver Ratio?
Today’s Spot Prices
Spot Gold
NZ $1687   / oz US $1376.59   / oz
Spot Silver
NZ $27.56   / oz NZ $886   / kg US $22.49   / oz US $722.98   / kg

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2 thoughts on “Gold Silver Ratio: Silver Ready to Rise Versus Gold?

  1. Pingback: Another Contrarian Silver Indicator | Gold Prices | Gold Investing Guide

  2. Pingback: Gold Prices | Gold Investing Guide A Currency War Special

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