Jeff Neilson does a really good job explaining the current issues in this market and how to make use of the gold/silver ratio as a means to optimize your precious metals portfolio.
A brief history of the gold:silver ratio:
Notice the dates: fixed for many years, then it floated over 40:1 when silver demonetized
Roaring 20s brought it down to 16:1
Great Depression, ratio went to 100:1, no significant industrial use
After the post WW2 boom, it went way down, industrial use and electronics
Early 1970s, US off gold standard and individuals could own gold - look how it went up
Hunt Brothers event bottoming it out at 9:1
Then it went back up, over 90:1 during the recession of the 1990s
Dot-com boom sent it under 60:1
Panic of 2008 sent it over 80:1 - deflation, less industry use
Recent stimulus sent it to 60:1
Related ETFs : Ishares Silver ETF (SLV), SPDR GOld ETF (GLD) SPDR GOld ETF (GLD), Powershares DB SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), GoldCorp (GG)
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