The first thing you need to know about gold to silver ratio is 1 unit of gold buys 44 unit of silver today.
^ Ratio of Gold:Silver on 17th August 2011
While Bank Negara has updated our coins to stainless steel, the United State is busy printing their new $100 dollars.
The United State’s new $2.4 trillion dollars will look like this:
When investing in Precious Metals, you will notice that unlike shares, it is measured in weight. Common terms are ounces and grams but do you know the different between ounce and troy ounce? If you happened to be in Kelantan, you will see gold or silver measured in dinar and dirham.
We had an exciting week last week. You should by now know that US is at risk of diving into a deep recession soon.
^ President Obama: Mmm… no more AAA? You must be kidding me.
Last Thursday we had our worst drop in DOW since 2008’s subprime mortgage crisis. The DOW went to the lowest of -8% before ending the week of bad news with -6%. When we Malaysian woke up on Friday, KLSE join the bear rush and ended the Friday with a -2% retreat.
^ Financial graph from Yahoo! Finances
America continued their Friday with rebounce only to be hit by another uppercut. Standard & Poor’s downgraded US credit card from brilliant AAA to AA+. Not just any AA+, its AA+ with negative outlook.
As I am typing this, silver drops from yesterday’s high of USD42.60 to today’s USD37.80. Below is what Jim Rogers said few months back.
Have a good weekend ahead!
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