00:00Welcome to Finance Learning.
00:03Have you ever considered whether it would make more sense to invest in gold or silver at a particular time?
00:09Did you spend a lot of time thinking about it and wasting time and money?
00:14This is how it is for the vast majority of investors.
00:17It's not an easy decision either.
00:19Most people try to make things easier for themselves by always investing a certain percentage in gold or silver.
00:25Or they simply buy what feels right at the moment.
00:28You can see that this cannot be the right strategy.
00:33And it doesn't have to.
00:35Because there is a very simple method to make this decision completely rationally.
00:40You don’t need much time or special knowledge for this.
00:43Yes, using this method you can make a rational decision within a few seconds.
00:49The method is so effective that it is used even by the largest institutions,
00:53when it comes to the fundamental decision of gold or silver.
00:55So welcome back to Thesaurus.
00:59In this video I will share with you the knowledge of this method.
01:02On this channel you can expect informative yet entertaining content on the topic of finance.
01:07Especially precious metals.
01:09If you are interested, please leave a free subscription.
01:12Thank you.
01:13The method I want to introduce to you is the so-called gold-silver ratio.
01:17Don’t worry, the process is extremely simple.
01:20And we'll talk it through calmly and step by step.
01:24I will also discuss how it can help you make better and, above all, more rational decisions when buying gold and silver
01:31and what you should definitely keep in mind.
01:34As always, however, please note that the content of this video does not constitute investment advice or a recommendation for action.
01:42What I present to you is only my personal opinion and the result of my research.
01:46But now let's get started.
01:48What exactly is the gold-silver ratio?
01:51This is quite easy to understand.
01:53A ratio is nothing other than a relationship.
01:56The gold-silver ratio is the ratio of gold to silver.
01:59In other words, it indicates how many ounces of silver you can buy for one ounce of gold.
02:05It is calculated by dividing the price of gold by the price of silver.
02:09You can view both of these values online at any time.
02:13Let's give an example to make it even clearer to you.
02:16Let's assume the price of gold is $2,800 per ounce and the price of silver is $25.
02:23The ratio is determined by dividing 2800 by 25.
02:27This results in a ratio of 112.
02:31One ounce of gold is worth the same as 112 ounces of silver.
02:35So you see, it's really not very difficult to determine the ratio.
02:38But it is enormously important and can be a real return rocket.
02:42More on that later.
02:43So be sure to stick with it.
02:45A short comment on my own behalf.
02:46I noticed that very few of you have subscribed.
02:50If you've watched the video up to this point, please subscribe for free.
02:54Or write me in the comments what's stopping you.
02:56For a better understanding, let’s take a look at the historical development of the ratio.
03:01For centuries the ratio was about 15 to 1.
03:04This is because silver is about 15 times more abundant in the earth than gold.
03:09In recent decades, the ratio has fluctuated on average between 40 and 90.
03:13The low in 2011 was around 30.
03:17And we have currently reached the peak.
03:18This is also due to the fact that the price of gold has risen extremely recently.
03:24You can find out more about the reasons for the rise in gold prices in this video.
03:28This means that silver is extremely undervalued according to the ratio.
03:32If you consider that there has been an ever-increasing silver deficit for years,
03:37While gold is plentiful, silver is scarce.
03:40I am sure that this will change dramatically in the near future and the price of silver will rise accordingly.
03:46By the way, even if you ignore demand and rely only on supply,
03:51i.e. on mine production, one finds that silver is currently extremely undervalued compared to gold.
03:58In recent years, gold mining production has been around 4 tonnes per year
04:02and that of silver at 26 tons.
04:06Therefore, the ratio should be somewhere around 1 to 7.
04:09So you see, silver currently has immense potential.
04:13Of course, it is exciting to know what the ratio means and how it is calculated.
04:17But I'm sure most of you want to know one thing above all else.
04:21How can I use the ratio for my investment
04:23and thus make rational decisions and possibly achieve extraordinarily high returns?
04:30Before I tell you, please check if you have already subscribed to this channel.
04:34This will help me immensely to continue to provide you with my content free of charge.
04:38It's like YouTube is paying for your education.
04:42Plus, you won’t miss any content in the future.
04:44Let me give you a rule of thumb.
04:48Of course, no general statement can be made and each case is unique.
04:53However, the rule of thumb can provide a good direction.
04:56In principle there are two options.
04:581. The ratio is high.
05:01Here you can count a ratio starting from 80.
05:04For conservative approaches, a ratio of 90 or higher.
05:07If the ratio exceeds this threshold, it means that silver is undervalued compared to gold.
05:13Accordingly, it would make rational sense to sell your gold and use the money to buy silver.
05:18It is exactly the other way around in the second case.
05:21This occurs when the ratio is low, for example below 40.
05:26Now silver is overvalued compared to gold.
05:29You should sell it and shift the money into gold.
05:32As you can see, the process is very simple.
05:35Of course, in general, one should not rigidly depend on one key figure as to whether and how one invests.
05:41Both precious metals have their advantages and disadvantages.
05:44However, the method can be a good support if you are unsure which investment makes more rational sense at a given time.
05:52The gold-silver ratio is therefore a useful tool for deciding whether gold or silver is currently cheaper.
05:59In the long term, smart reallocation between metals can help optimize returns.
06:04Now I would be interested in your opinion.
06:06Write me in the comments.
06:08Will you use the ratio in the future?
06:09Are you convinced of this?
06:12Are you perhaps already using them?
06:14I hope you learned something from this video.
06:17If you think your friends deserve to know about this strategy, please share the video with them now.
06:23They will thank you.
06:24Oh and one more thing.
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06:32Just click on it.
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