The Federal Reserve's rescue has failed

[Guest]

Re: The Federal Reserve's rescue has failed

Jimmygu3 -

Well of course nothing can be taken that literally. But maybe an analogy for finding some scrap of actionable value out of the above laborious calculations could be comparable to "hitting the barn door with a shotgun".

If $1000 gold at a 5/1 ratio produced a 'theoretical value' for silver of $200, and we note the present $20 price is one tenth of such a theoretical value, one might take a flyer and conclude it seemed 'relatively cheap'?

I was actually using the above as a guideline for "expensive vs. cheap" when silver was at $12 this past year. But it still hints that it may be sorta cheap, no?

[GRG55]

Re: The Federal Reserve's rescue has failed

Jimmygu3 -

Well of course nothing can be taken that literally. But maybe an analogy for finding some scrap of actionable value out of the above laborious calculations could be comparable to "hitting the barn door with a shotgun".

If $1000 gold at a 5/1 ratio produced a 'theoretical value' for silver of $200, and we note the present $20 price is one tenth of such a theoretical value, one might take a flyer and conclude it seemed 'relatively cheap'?

I was actually using the above as a guideline for "expensive vs. cheap" when silver was at $12 this past year. But it still hints that it may be sorta cheap, no?

Perhaps.

But it's not nearly as cheap as mid-December when the Au/Ag ratio was hovering above 57. Yesterday (Wed) it closed at 47.6. The last time we saw numbers this low was in late Feb 2007 when silver traded briefly around $14.50.

Still a fan of silver (blondes), but right now I prefer to date redheads (gold).