Originally Posted by
irondale
what is considered a high ratio and a low ratio? 6:1 , 5:1 on the high side ? 4:1 on the low ? please tell us a little more.
Not sure what a good ratio would be but the idea is to think about investments not in dollar amounts but in the amount of metal owned. If the copper/aluminum ratio was 6:1, you could sell a pound of copper and buy 6 pounds of aluminum. If the ratio went down to 4:1, you need only 4 pounds of aluminum to get that pound of copper back. I'm sure it's not that simple. I haven't seen ratio charts other than gold/silver but kitco.com has 5 year price charts for most metals. Looking at the charts, copper is worth more than it was 5 years ago and aluminum is worth less, so the ratio is higher than it was in Dec. 06. Like I said, I wouldn't invest in futures because they're not physical metals.
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