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 Replies: 12 / Views: 1,835 |
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Pillar of the Community
United States
586 Posts |
Gold-to-Silver Ratio is around historic high; but gold price isn't. If GSR ever falls back below 40, and Silver still wanders below $20; then you will see $800 gold.
Gold-to-Crude Ratio is also around historic high. If GCR ever falls back to around 16, and Crude still wanders around $50; then you will also see $800 gold.
Simple as that.
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Valued Member
United States
160 Posts |
Yes, something needs to give, and it looks to be gold right now as silver is holding up relatively well lately as gold drops further.
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Pillar of the Community
 United States
586 Posts |
About gold mining cost, here is what I think: Back to 2011, when gold was above US$1900 peeps said the producer cost was US$1,400; then when gold fell to US$1,400, peeps said the cost was at least US$1,200. And when gold fell to US$1,200 peeps said the cost was around US$900. I start to doubt what is the real cost of gold mining; back to the days when gold was only US$600, how did the miners survived? Of course, there will be a minimum for the gold miner's cost; I am just afraid that we're still NOT there yet. Since the emergence of shale oil, the energy price has dropped significantly, this will help to reduce mining cost, too. Since I will never know the real cost of gold mining, I would rather wait until some miners go belly up. I wouldn't doubt that major miners can weather the storm; in fact, most of them survived over the last few decades. What I really want to see, is small and mid-size miners go bankrupted; that would release the BUY signal for me. Any other suggestion?  |
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Valued Member
United States
493 Posts |
That makes sense Leon since many miners were starting to give out dividends again. With prices so great, operation investment had to be considerable, with all the bubbles in the economy for sure PM's are at this point now obvious without a doubt. Silver physical demand went from 50 million oz. to nearly 300 million oz. 1/5th of total yearly production over the last ten years, that's allot of silver sitting around collecting dust, well over a two year above ground supply last I checked. I suspect silver will tank again next recession, might take a few years, interest rates will go down again (only thing left to do), and at least my opinion is that we are in different times. Central banks want gold, they must be holding it up? Then of course inflations in all these countries where people feel forced to buy gold, can't really blame them, gold at least stands the test of time while fiat is only good if your spending it, OR you have allot of it.
Now, as you can see, I'm not into gold as much as I am silver, and wish I was. Still, if we hit 14 or less again I may stock up hoping it does what it did again this year, but with interest rate hikes who knows, we may hit new lows.
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Pillar of the Community
United States
4211 Posts |
I have been trying to pick up a few oz.s of silver here and there these last couple of years.
Sometimes it's a tough decision when I have a little $'s to spend....a coin, some silver or a piece of gold.
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Pillar of the Community
United States
4333 Posts |
Trouble is, when the drop gets to a certain point, the premiums rise and -
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Valued Member
United States
408 Posts |
 If gold falls to $800/oz, I will buy quite a bit. It won't happen though. Gold is about to shoot up big time. Trumps generals (he has four appointed so far) are wanting to war with Iran. That will lead to oil prices going to $10/gallon and worse. With all that going on, prices of silver and gold with shoot up. Good luck guys. |
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Pillar of the Community
United States
586 Posts |
On the ten-year chart, GSR (Gold-to-Silver-Ratio) has peaked and started trending down for a few months. Price movement has been worrisome: when GSR drops, silver held up and gold crashed; when GSR bounces, gold dipped and silver crashed. In summary, GSR reduction resulted in price drop of both gold and silver. It is the wrong time to buy any gold and silver.  |
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Valued Member
United States
493 Posts |
Well, we do have ten year support levels at around 14 dollar silver. Interesting someone mentioned war and high oil prices, Saudi's and the rich would love that? Who thinks gold has crashed, I think anything over $1000 and it's holding up great, I believe gold is a different animal than it used to be, silver seems to just be along for the ride. Unless the world over all could contain it's inflation and devaluations I don't see gold falling far at all.
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Pillar of the Community
United States
1450 Posts |
You know silver is used in manufacturing. Gold is not used like silver. If manufacturing picks up then silver prices should rise, but I don't see what is holding up gold price. I wish it would fall so I could buy gold classic coins like Saints in Indian Heads. Gold is a hedge against economic disaster and inflation.
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Pillar of the Community
United States
586 Posts |
Gold-to-Silver-Ratio just hit the upper limit of a midterm range (btw 68 and 73) today.
If GSR is unable to break out above, then expect gold price to roll over and test $1,050 (previous low).
In summary, gold price is NOT looking good.
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Pillar of the Community
United States
1609 Posts |
joeysanders627- Please don't mention its name. Makes me wanna puke.  |
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Pillar of the Community
United States
1609 Posts |
I don't wanna get political. But I just had to.
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Replies: 12 / Views: 1,835 |
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Posted 12/18/2016 11:10 am
