• "Spreading the ideas of freedom loving people on matters regarding metals, finance, politics, government and many other topics"

Gold / Silver ratio revisited

Argent Dragon

Site Support
Midas Member
GIM Hall Of Fame
Joined
Mar 29, 2010
Messages
8,369
Likes
3,207
Location
Lone Star State
Nice Chart BigJim !!!!
 

Argent Dragon

Site Support
Midas Member
GIM Hall Of Fame
Joined
Mar 29, 2010
Messages
8,369
Likes
3,207
Location
Lone Star State
Rocket-Dog.jpg
 

SongSungAU

Midas Member
Midas Member
Site Supporter
Joined
Jun 8, 2010
Messages
11,313
Likes
24,178
Today was even better than yesterday....

K2007221716.jpg
 

Argent Dragon

Site Support
Midas Member
GIM Hall Of Fame
Joined
Mar 29, 2010
Messages
8,369
Likes
3,207
Location
Lone Star State
Sure glad I bought my Platinum round this past weekend !
Only paid $830 for it.
 

Bman33

Silver Surfer
Joined
Jan 10, 2016
Messages
757
Likes
833
83.5

Good to see it coming down. I think a silver trade for gold will be easier than it was recently when we all wanted to trade gold for silver at 120:1 and couldn't because shops were closed and nobody had anything.
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
4,175
Likes
15,951
83.5/1 For the weekend. Au held $1900 by its fingernails.
Refuse the mask! Rage against tyranny!!
Have a good one everybody.
 

SongSungAU

Midas Member
Midas Member
Site Supporter
Joined
Jun 8, 2010
Messages
11,313
Likes
24,178
A nice gain for one week.

Ch200724.jpg
 
Joined
Mar 31, 2010
Messages
171
Likes
199
Location
Finland
9:1

Thats the ratio that is actually being mined today.

But - considering that silver actually gets consumed and gold doesnt...

Perhaps 5:1 is a better answer....
I'd like to see how the annual mining of gold and silver have developed during last 50 years or so.
 

Au-myn

GOLDBUG
Founding Member
Site Supporter
GIM Hall Of Fame
Joined
Jul 2, 2010
Messages
935
Likes
1,632
Location
California
Hello Gold & Silver friends,

The Gold / Silver ratio on this 3 x 25 scale factor 10 chart turned bearish on a # 1 Double Bottom formation sell signal at 900. Or as you can see... X marks the spot!

Hi Ho Silver!! And away!! (yea, I know. I stole it from The Lone Ranger).

g s 1.png
 

savvydon

Site Supporter
Site Supporter
Platinum Bling
Joined
Dec 14, 2010
Messages
4,003
Likes
4,605
Hello Gold & Silver friends,

The Gold / Silver ratio on this 3 x 25 scale factor 10 chart turned bearish on a # 1 Double Bottom formation sell signal at 900. Or as you can see... X marks the spot!

Hi Ho Silver!! And away!! (yea, I know. I stole it from The Lone Ranger).

View attachment 173947
In this case, of course, bearish, is bullish.;)
 

Avalon

The most courageous act is to think for yourself
Platinum Bling
Joined
Mar 30, 2010
Messages
3,559
Likes
4,400
Location
NC
Im trying to follow the above charts. Im not getting it. :( Is now an ok time to exchange silver for gold. I need my money to be more mobile than big hunks of silver.
 
Last edited:

SongSungAU

Midas Member
Midas Member
Site Supporter
Joined
Jun 8, 2010
Messages
11,313
Likes
24,178
Wow... looks like it is continuing....
Will be interesting to see if it continues when New York opens in about nine hours and some minutes.

1595819558660.png

Update: Less than an hour until New York opens. Will they beat this down?

1595849588856.png
Wow! No beatdown today.

1595883959939.png
 
Last edited:

Zed

Silbur!!!
Midas Member
Site Supporter ++
GIM Hall Of Fame
Joined
Mar 30, 2010
Messages
19,786
Likes
21,959
Location
Watching the Sideshow!
The last GSR low of ~32 would have silver @ $60 today.
 

Argent Dragon

Site Support
Midas Member
GIM Hall Of Fame
Joined
Mar 29, 2010
Messages
8,369
Likes
3,207
Location
Lone Star State
Silver is up in Euros to, now 20+ EU !!!
 

Argent Dragon

Site Support
Midas Member
GIM Hall Of Fame
Joined
Mar 29, 2010
Messages
8,369
Likes
3,207
Location
Lone Star State
Damn, that white metal is showing some strength !!!

 

nickndfl

Midas Member
Midas Member
Midas Supporter ++
Joined
Jan 7, 2011
Messages
15,214
Likes
15,426
Location
Florida
Hahhaha I just found out silver is trading over $20 today. Been watching it for years and it just popped all the sudden. I have more silver than I have hair!
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
4,175
Likes
15,951
Last edited:

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
4,175
Likes
15,951
Back to 81.5/1 this AM. We'll see where it closes for the weekend.
$2000 Au & $25 AG??? Not lookin like that'll happen...
 
Last edited:

the_shootist

I identify as vaccinated bitches!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
57,562
Likes
109,212
Location
Earth
There seems to be a tug of war going on. over the last couple of days (including today) PMs rise overnight and get pushed down during the day. That roller coaster ride seems to be adding some instability to the ratio
 

Bman33

Silver Surfer
Joined
Jan 10, 2016
Messages
757
Likes
833
It'
There seems to be a tug of war going on. over the last couple of days (including today) PMs rise overnight and get pushed down during the day. That roller coaster ride seems to be adding some instability to the ratio
Happening again right now. Both made really nice gains overseas and then New York is hammering them down.
 

solarion

Midas Member
Midas Member
Sr Site Supporter
Joined
Nov 25, 2013
Messages
8,281
Likes
14,104
Silver soared at open, then dropped $.50 in an hour and now rebounding. Wild swings.
 

Uglytruth

Midas Member
Midas Member
Site Supporter ++
Joined
Apr 6, 2011
Messages
14,191
Likes
29,629
Just ask yourself why................

https://www.cnbc.com/2020/07/31/war...athaway-continues-to-buy-bank-of-america.html

Warren Buffett continues his Bank of America buying spree, bringing stake to 11.8%
Published Fri, Jul 31 20208:07 AM EDT
Key Points
  • A Securities and Exchange Commission filing showed Buffett’s conglomerate bought 21.2 million shares of the banking giant between Tuesday and Thursday.
  • That increased Berkshire’s stake in Bank of America by $522 million and sets its total position in the bank at 11.8%.
  • In total since the recent buying began, Berkshire has purchased $1.7 billion worth of the stock.

Warren Buffett’s Berkshire Hathaway this week again added to his already-enormous stake in Bank of America at a time when the coronavirus pandemic dampens the economic outlook and interest rates hold near record lows.

A Securities and Exchange Commission filing showed Buffett’s conglomerate bought 21.2 million shares of the banking giant between Tuesday and Thursday. That increased Berkshire’s stake in Bank of America by $522 million and sets its total position in the bank at 11.8%.

Berkshire has been buying small amounts of Bank of America stock every day since July 20.

Last week, a similar filing revealed the Berkshire bought 33.9 million shares of the banking giant between Monday and Wednesday. That increased Berkshire’s stake in Bank of America by $813.3 million to more than $24 billion.

In total since the recent buying began, Berkshire has purchased $1.7 billion worth of the stock.

News of Berkshire’s latest nibbles at Bank of America wasn’t enough to keep shares out of negative territory in premarket trading as of 7:30 a.m. ET, down 0.25% before the opening bell. Berkshire also has stakes in JPMorgan and Wells Fargo.




Bank shares have been hit lately has concerns about the economy keep interest rates low. Bank of America shares are off by 29% this year.

Though Buffett voiced his usual upbeat tone on the American economy during Berkshire’s annual shareholder’s meeting in May, he did acknowledge the extreme pressure the Covid-19 pandemic is having on certain industries.

Nothing can basically stop America,” Buffett told shareholders. “The American miracle, the American magic has always prevailed and it will do so again.”

However, the Oracle of Omaha also revealed he sold out of his airline holdings due to the uncertainty caused by the outbreak.






The average purchase price was $24.65 per share.
 

SongSungAU

Midas Member
Midas Member
Site Supporter
Joined
Jun 8, 2010
Messages
11,313
Likes
24,178
A nice gain for one week (for gold & silver).

KC200731.jpg
 

the_shootist

I identify as vaccinated bitches!
Midas Member
Midas Supporter ++
Joined
May 31, 2015
Messages
57,562
Likes
109,212
Location
Earth
Ayuh! I made a gold purchase that I initially felt may have been too high earlier in the week By week's end it looks a lot better to me now!
 

BigJim#1-8

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Mar 31, 2010
Messages
4,175
Likes
15,951
Joined
Sep 17, 2019
Messages
67
Likes
52
Location
Quebec, Canada
I just read this interesting article regarding the use of silver and how it balances itself with prices of gold in the market, before and nowadays. Most of these are Australian stocks, but I still deem it worthy of interest to read.

https://stockhead.com.au/primers/asx-silver-stocks-guide-heres-everything-you-need-to-know/


For years silver has been the bridesmaid to gold’s bride, as the glamorous yellow metal has outshone its grey rival.
Gold has grabbed investor headlines because of its much higher price and bigger profile.
Things may be about to change in silver’s favour, however, and this is down to an obscure trading tool called the gold to silver ratio.
The ratio highlights how many ounces of silver are required to buy one ounce of gold.
At current prices, $US1,810/oz for gold and $US19.30/oz for silver, it takes nearly 94 ounces of silver to buy one ounce of gold.
For centuries right up to the late 19th century the ratio was relatively steady, varying from 15:1 to 30:1.
Gold-Silver Ratio. Source: gold silver.com
Merchants would sell their gold and buy silver when the ratio was high in anticipation that the market would correct, and when the ratio fell, they would sell their silver to buy more gold.
This trading mechanism enabled merchants and traders to profit from price movements in silver and gold. It also worked in different countries.
For example, the gold-silver ratio may have been higher in France and lower in the United States, enabling keen-eyed merchants to profit from the difference or arbitrage.
The ratio increased in volatility from the 1870s. In some rare cases it soared close to 100:1 as in 1941 and 1991, and in other times dipped under 20:1 as in 1919, 1968 and 1980.

Silver as a currency
Silver was a monetary metal used in international trade throughout the 19th and early 20th centuries. For example, the US minted a special silver dollar for trading purposes.
Hong Kong minted its first silver dollar in 1866 for trade between western nations and China.
Gradually, silver coins became less relevant to international trade, and nations stopped minting them for overseas and domestic markets.
The United States was one of the last countries to stop using silver currency.
In 1964-65 under President Lyndon Johnson, silver coins such as the dime (10c) and quarter (25c) that had a silver content of 90 per cent were withdrawn from circulation.
Part of the reason for this was silver’s price had become too high. The value of silver in a coin could be more than its face value.

Silver coins, bullion now collectables
Today, silver is a demonetised metal in that it is generally not used as legal tender to pay government taxes or for goods and services.
Silver coins and bullion still have a role to play, as collectables, as does the gold-silver ratio.
The ratio’s relevance was highlighted again in March 2020, when something remarkable happened.
The gold-silver ratio at the height of the Coronavirus pandemic hit 120:1 – its highest ever recorded.
The ratio is back down to 90:1, still very high by historical standards.
Any investor that sold one ounce of gold to buy 120 ounces of silver in March 2020 could theoretically be sitting on a 25 per cent profit several months later.
Anthony McClure, managing director of ASX-listed Silver Mines (ASX:SVL), said supplies of physical silver were hard to come by and could explain the ratio’s take-off.
“It’s bizarre, there is no physical metal available,” he told Stockhead. “You can’t go into the Perth Mint or any other mint and buy silver. In that environment, you’d expect the price to rise.”
The volatile swings in the silver-gold ratio are an opportunity for some traders.
They may also illustrate that silver is relatively undervalued compared to gold.
Could it be that silver is again becoming a monetary metal akin to gold? Time will tell.

Silver’s role in medicine, industry
Silver has a myriad number of uses in medicine because of its anti-microbial qualities and in industry due to its electrical conductivity and anti-tarnish properties.
The white metal is sprayed as a thin film on computer discs, and silver nitrate is used in medicines.
Stained glass is coloured yellow or orange by silver, and silver-coated ball bearings are a key component in aero engines.
Silver has been used by NASA in an ionised form to purify water for astronauts, and the metal has other uses in photography, solar panels, and in motor vehicles.
Industrial, medical and clinical uses account for up to half of silver’s production, according to the BullionVault website.
There is also silver jewellery and tableware, accounting for 20 per cent of the market.
Demand and supply for physical silver is fairly evenly matched, according to data from industry body The Silver Institute.

Silver supply and demand
Global supply of silver metal is forecast by the Silver Institute at 978 million ounces in 2020, including mine production of 798 million ounces and some recycled material.
Silver metal demand is expected to be 963 million ounces in 2020, with 475 million ounces going to industry and 215 million ounces taken by investors.
The physical silver market is therefore set to see a surplus of 15 million ounces in 2020.
Exchange-traded products are a complicating factor for the market. They are a financial instrument or investment product based on silver metal held in secure locations.
Typically, they do not allow investors to take physical delivery of the metal like some metals futures contracts.
When silver exchange-traded products are included, the silver market has a notional deficit of 105 million ounces in 2020, the Silver Institute said.
Holdings of silver in exchange-traded products reached a new high of 925 million ounces on June 30, equivalent to around 14 months of mine supply, the Silver Institute said in a report.

ASX silver stocks
Silver stocks are enjoying a timely revival as investors are drawn to the potential profit from trading in the grey metal.
Investors wanting to put some money into silver equities can go down two routes.
Pure play silver miners are few on the ASX and are one way for investors to stake a claim in the metal.
Silver Mines (ASX:SVL) is a dedicated silver play and owns the Bowdens project in NSW.
Bowdens is sitting on one of the world’s largest silver deposits, and a scoping study for the project indicates production of 3.4 million ounces per year of silver.
Manuka Resources (ASX: MKR), the first gold and silver IPO of 2020 is the other ‘go to’ silver play.
Whilst it is currently producing gold from its recently modernised 850,000 tonne per annum plant at Wonawinta in the prolific Cobar Basin, it is forecasting first silver production in Q2 2021 and expects to be producing 2 million ounces of silver per annum from its 52 million ounces silver resource.
Alternatively, investors can pick from a large number of miners that produce silver alongside other metals such as copper or gold.
There are around 30 ASX companies that have interests in silver.

Large cap silver miners
They include some larger miners such as South32 (ASX:S32), which mines silver at its Cannington site in Queensland, producing at a rate of 3 million ounces a year.
Sister company BHP (ASX:BHP) has some silver production from its Olympic Dam mine in South Australia that is better known for its uranium-copper output.
Smaller Australian-listed miners, meanwhile, provide a wider choice of silver projects for investors.

Small cap silver miners
Brazil-focused silver explorer BBX Minerals (ASX:BBX) has identified silver in a precious metals complex of exploration tenements in the southern Amazon region.
The company has secured an $8m standby facility with a US institutional group to advance work on a metallurgical test plant for its Brazil project.
WA-based Pacifico Minerals (ASX:pMY) is developing the Sorby Hills lead-silver-zinc project in WA, which has a measured resource of 7.1 million tonnes at 6.1 per cent lead equivalent (4.3 per cent lead and 57 grams per tonne silver) and 0.4 per cent zinc.
Meanwhile, White Rock Minerals’ (ASX:WRM) portfolio includes the Mt Carrington gold-silver mine in northern NSW.
The company has so far defined a shallow indicated and inferred resource totalling 341,000oz gold and 23.2 million ounces of silver.
Rimfire Pacific Mining’s (ASX:RIM) Sorpresa project in the East Lachlan Fold Belt of NSW hosts silver along with its gold resource.
A maiden JORC 2012 compliant resource of 6.4 million tonnes at 0.61g/t gold and 38g/t silver for 125,000 contained gold ounces and 7.9 million contained silver ounces was released in December 2014.
Investigator Resources (ASX:IVR) owns the Paris silver project, a potential 1-million-tonne-per-year mine, which the company says is the highest grade non-by-product undeveloped silver project in Australia.
Paris contains a resource of 9.3 million tonnes at 139g/t silver and 0.6 per cent lead for 42 million ounces of contained silver and 55,000 tonnes of contained lead.
Anything over about 50g/t is generally considered high-grade when it comes to silver.
“Australian dollar gold has continued to strengthen, with volatility, during the COVID pandemic and, if we see the gold-silver ratios retreat from the current level of historic highs of up to 120, the Paris silver project will become a very exciting opportunity for Investigator,” managing director Andrew McIlwain said.
Adriatic Metals (ASX:ADT) is advancing the Vares polymetallic project in Bosnia & Herzegovina.
Phase-two metallurgical test work has shown the project can produce concentrate grading 25.1 per cent copper and containing significant quantities of payable gold (20.9g/t) and silver (9,550g/t).
Adriatic has secured environmental approval for the project.
Mithril Resources (ASX: MTH) will carry out drilling at its Copalquin gold and silver project in the west of Mexico after raising $3.5 million from investors.
Copalquin is home to more than 32 historic gold and silver mine workings and is within the Sierra Madre gold-silver trend that hosts Coeur Mining’s Palmarejo and Agnico Eagle’s Altos mines.
Historic drilling data shows the Copalquin project has multiple high-grade hits including, 17.77m at 45.16g/t gold and 118.2g/t silver from 31m at the El Cometa mine, and 4.5m at 28g/t gold and 2,350g/t silver from 138m at La Soledad mine.
 
Joined
Mar 31, 2010
Messages
171
Likes
199
Location
Finland
Exchange-traded products are a complicating factor for the market. They are a financial instrument or investment product based on silver metal held in secure locations.
Typically, they do not allow investors to take physical delivery of the metal like some metals futures contracts.
Subtract silver from paper silver. You get paper.
 

Strawboss

Apocaloptimist
Midas Member
Site Supporter ++
Joined
Mar 31, 2010
Messages
8,829
Likes
18,033
Subtract silver from paper silver. You get paper.
Paper has its purpose too...specifically for trading purposes...

For example -when the ratio was over 100. No way anyone would be able to effectively capitalize on that swapping their gold for silver...and even if they bought silver - the premiums are crazy high...

Whereas using GLD/SLV - you can grab the actual ratio gains without the premiums on the one side - and the unwillingness of the counterparty to pay a fair price for what is being sold in exchange.

Yeah - its paper and not the real thing...but - it is effective for trading...
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
Midas Member
Midas Supporter
Joined
Apr 4, 2010
Messages
17,380
Likes
25,660

solarion

Midas Member
Midas Member
Sr Site Supporter
Joined
Nov 25, 2013
Messages
8,281
Likes
14,104
Yeah - its paper and not the real thing...but - it is effective for counterfeiting...
FIFY

Without fake commodities people would have to trade actual commodities and price discovery mechanisms would remain functional. While I agree that derivatives are convenient, they're also, unfortunately being used extensively to manipulate prices of commodities...and nearly everything else...most notably interest rates(the price of money). It is the presence of derivatives and the ability of banksters to use said derivatives, rather than actual markets of goods, to arrive at manipulated "prices" that bear no resemblance to that which a functional price discovery model would yield.

The same tired mechanism is now being used to contain the exchange rate of BTC/USD. A so called "option"(allegedly a derivative) is being used to gamble on the price action of bitcoin, while the exchange itself admits openly that it never deals in the underlying asset...in this case bitcoin. That's not a market for a commodity, it's simply a place to gamble on the price action of an asset. When that gambling action is perceived as the "price" of a commodity, then what you have is a counterfeited market with no real price discovery mechanism. A situation which has existed in precious metals for decades. It's a hell of a price to pay for convenience.
 

SongSungAU

Midas Member
Midas Member
Site Supporter
Joined
Jun 8, 2010
Messages
11,313
Likes
24,178
Heavy action for both metals as I type right now. Check it out!
You aren't joking!

KM200804-1040.jpg

Gold & Silver were both in negative territory this morning when I looked.

UPDATE: It's still going....

KM200804-1535.jpg
Wow. What a day.

KM200804-1701.jpg
 
Last edited: