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Gold/Mining/Energy : Gold Price Monitor
GDXJ 99.85+6.2%Nov 24 4:00 PM EST

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To: Chispas who wrote (95986)9/28/2003 12:50:08 PM
From: Chispas  Read Replies (1) of 116764
 
Ratio of silver to gold for investors....

Very interesting commentary from GE this AM:

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"For those that own physical Gold and/or Silver
(outacontroler) Sep 28, 12:21

Owning Gold or Silver does not mean you have to sit idly by with a "dead" asset. They are very much alive and should be exchanged for one another as the price ratio between gold and silver moves. Currently at 75 to 1 Silver should make up 90% of the dollar value of your holdings. That is 675 ounces of silver to 1 ounce of gold. Every time the ratio moves by 30% you should exchange one metal for the other and adjust you dollar ratio by 20% (of course with 100% being the maximum). When this is done you will continually increase the number of ounces you own without ever having to invest another dollar. In the above example when the silver to gold price ratio gets to 53 to 1 (70% of 75 which is the 30% move I mentioned above) you would adjust your dollar ratio to 30% gold and 70% silver. Now you would own 123 ounces of silver for every ounce of gold. The next level would be a ratio of 37 to 1 (70% of 53) you would then adjust you dollar holding of the metals to 50% gold and 50% silver. This would give you 37 ounces of silver for every ounce of gold. You repeat this process in both directions with every move. Those dead assets will take on a GROWING life of their own.
Earl"
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