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RE: The US Dollar Is Screwed Part 2 - How I'm Protecting Myself

in #economics7 years ago

I am a silver guy, never really got into gold, probably because of the price or the fact that right now the gold to silver ratio is 73 to 1. I have been stacking for the past few years and feel that i am in a pretty good postion should such crash happen (which it will). Once that ratio gets to at least 40 to 1 I will sell half of my silver and move it to gold. Thanks for the share .....resteemed for awareness.

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Thanks for the resteem! I think that's a pretty good plan. I do think that a lot of people put too much emphasis on the gold/silver price ratio though. A lot of things can change in the market, which would permanently change the "correct" ratio. For example, let's say engineers figure out that using more silver in a cell phone allows the battery to last twice as long. This discovery increases the demand for silver tremendously, and now the "right" gold/silver price ratio is way different. Examples like this one that effects the gold and silver demand probably happen on a daily basis, changing the "right" ratio a little at a time.