TY. The historical gold price-silver price ratio I looked up looks like the lowest was 40 in recent years. Right now it’s about 70 to 75. Following this correlation might see silver double or more depending on the short interest and the ability of the Reddit wolves to replicate the attack squeeze success they had on GameStop and others.
Are you on Reddit?
I am not on reddit, though I do subscribe to the WSB forum I don’t read it. I have a good friend who has been with that group for years. He has been sending me funny screenshots from their forum from time to time - before what happened last week.
Yes, people have been talking about the historical ratio between gold/silver being way off kilter for many years now. Who knows, maybe it is time for them to come back into closer correlation. The first thing that pops into my head is just industrial demand may be higher for gold than for silver, in the electronic age. I don’t know to a certainty just ‘speculating’ on why the prices may have diverged.
My friend just texted me as I am posting this. He says the working thesis is that the value of the dollar is held up by the shorting of gold, and gold is kept down by the shorting of silver. Make of that what you will - he literally just texted me. His ears must’ve been burning. If what he said is true, then a squeeze on silver would come at the social price of devaluation of the dollar. Which is good or bad depending on what you do for a living. Good for US producers and exporters; but since a lot of what is exported depends on source materials that are imported, maybe not good.