SwingTimer

Ratio of Gold to Silver

This ratio analysis between gold and silver is all well and good, and perhaps even useful. But unless you can predict one component (either one) with some degree of certainly -and by some relevant fundamental/technical evaluation proceedure which takes into account prospective conditions - the ratio's status is quite meaningless. Just my humble opinion.

The same can be said about standard deviations as a useful measure of propensity for reversion to the mean. But, again, such a measure (while a quite useful evaluative tool) does not CAUSE nor necessarily MANDATE a particular change in the value of the underlying under analysis. It merely DESCRIBES what HAS happened - not what WILL happen.

So, to the extent that historical circumstances can be useful in describing the "nature" of a particular "item", any measure of historical circumstances is most relevant, and useful - but should be considered insufficient as the basis on which to make an investment decision....in my humble opinion.

In the current environment of demand destruction for commodities generally ( and silver in particular), the single most relevant factor is the fact of supply destruction arising from the well-known price erosion and curtailment in the availability of financing.

By contrast to silver, which has a basis for its price given its demand for industrial purposes, gold's utilitarian value is minimal and is largely ornamental. In my opinion, the largest prospective merit in buying gold is the assessment that SOMEONE ELSE makes regarding whether gold may or may not be worth more than its current price - not an sound basis for valuing an asset!

....in my humble opinion, so draw your own conclusions.