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Gold Up but Silver Lags… Why?

pmh1nicpmh1nic Posts: 3,276 ✭✭✭✭✭

Historically there is theoretically a price connection between gold and silver that doesn’t seem to be holding true. Why?

The longer I live the more convincing proofs I see of this truth, that God governs in the affairs of men. And if a sparrow cannot fall to the ground without His notice is it possible for an empire to rise without His aid? Benjamin Franklin

Comments

  • Jzyskowski1Jzyskowski1 Posts: 6,650 ✭✭✭✭✭

    Agreed. If gold takes off silver will follow. Everything is a little different these days 😉

    🎶 shout shout, let it all out 🎶

  • jmski52jmski52 Posts: 22,845 ✭✭✭✭✭

    Silver has an industrial component, more so than gold. The perception is that the economy isn't doing so great, unless you're a banker or a politician in DC - then the economy is booming. Gold has already assumed it's historical role of being a hedge against economic uncertainty.

    The reason that the gold/silver ratio changes so much over time is because there are times when silver becomes more of a monetary asset, and other times when it leans more towards being an industrial metal. That is what changes the relationship and relative values between gold and silver, imo.

    If the banking system has a problem such as we see in Canada right now, then I would expect silver to follow alongside gold and even leapfrog gold as a monetary metal. Silver has always been more volatile. This is why some people are accumulating silver now with the expectation of a slingshot reaction in silver. Who knows? It's happened before.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,818 ✭✭✭✭✭

    spot price is a distraction. Follow the physical price. . . unless of course you are trading promises.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • cohodkcohodk Posts: 19,118 ✭✭✭✭✭
    edited February 17, 2022 9:30AM

    Over the last 20 years silver has traded roughly in a range of 45 to 90 ounces to 1 ounce of gold
    The 4 year average has been 82 ounces. Today it is 79.

    All looks normal and within historical ranges.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • JimTylerJimTyler Posts: 3,392 ✭✭✭✭✭

    I’m not getting excited until $2K is in the rear view mirror

  • derrybderryb Posts: 36,818 ✭✭✭✭✭
    edited February 17, 2022 11:28AM

    @cohodk said:
    Over the last 20 years silver has traded roughly in a range of 45 to 90 ounces to 1 ounce of gold
    The 4 year average has been 82 ounces. Today it is 79.

    All looks normal and within historical ranges.

    silver premiums are a wee bit out of whack. lol

    and that GSR is a lot different when viewed from a physical price perspective.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • blitzdudeblitzdude Posts: 5,891 ✭✭✭✭✭
    edited February 17, 2022 1:23PM

    @PerryHall said:
    Someone here told me it is "gutter metal". Maybe that's why. ;)

    Yup, ones the metal of kings the other is considered gutter metal for the peasants. Nothings really changed over the last 6000+ years. RGDS!

    The whole worlds off its rocker, buy Gold™.

  • blitzdudeblitzdude Posts: 5,891 ✭✭✭✭✭

    @derryb said:

    @cohodk said:
    Over the last 20 years silver has traded roughly in a range of 45 to 90 ounces to 1 ounce of gold
    The 4 year average has been 82 ounces. Today it is 79.

    All looks normal and within historical ranges.

    s̶i̶l̶v̶e̶r̶ ̶p̶r̶e̶m̶i̶u̶m̶s̶ APMEX ASE premiums are a wee bit out of whack. lol

    and that GSR is a lot different when viewed from a physical price perspective.

    There fixed it for ya!

    The whole worlds off its rocker, buy Gold™.

  • cohodkcohodk Posts: 19,118 ✭✭✭✭✭

    @derryb said:

    @cohodk said:
    Over the last 20 years silver has traded roughly in a range of 45 to 90 ounces to 1 ounce of gold
    The 4 year average has been 82 ounces. Today it is 79.

    All looks normal and within historical ranges.

    silver premiums are a wee bit out of whack. lol

    and that GSR is a lot different when viewed from a physical price perspective.

    The silver market doesnt give a hoot about retail premiums on ASEs.

    But yeah, ive heard perspective is fact. Lol

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • pmh1nicpmh1nic Posts: 3,276 ✭✭✭✭✭

    I guess I saw the jump from $1750 to $1900 with gold and expected to see a similar jump with silver. That said it did touch $24 for a minute. We'll if $1900 holds. I've been hearing about the price explosion $2K plus for years. I'm long term for the grandkids.

    The longer I live the more convincing proofs I see of this truth, that God governs in the affairs of men. And if a sparrow cannot fall to the ground without His notice is it possible for an empire to rise without His aid? Benjamin Franklin
  • JimWJimW Posts: 561 ✭✭✭✭

    It looked they both were up about 1% today - so some parallelism in movement, for today at least...

    Successful BST Transactions: erwindoc, VTchaser, moursund, robkool, RelicKING, Herb_T, Meltdown, ElmerFusterpuck

  • RobMRobM Posts: 552 ✭✭✭

    @jmski52 said:
    Silver has an industrial component, more so than gold.

    Agree. Another use case has never fully replaced the consumption of silver from photography. Photovoltaics have taken up some of the slack, but the silver loadings are gradually being reduced due to tech advances. Not everyone is wearing silver impregnated antimicrobial socks and underpants yet. Still, silver price is up nearly 5x since 2000, which isn't so bad.

  • rte592rte592 Posts: 1,668 ✭✭✭✭✭
    edited February 17, 2022 6:59PM

    Probably my fault.
    I picked up a silver center from a Bally's casino $10 Silver Strike (the ones with the brass outer ring)
    G&S shop only had the silver center and didn't think it was part of the $10 casino strike.
    I figured it at 0.65 ozt, priced at $15 was dang near under spot...that's unheard of.

    Silver dropped a bit this afternoon and at home it weighed in at 0.60 ozt so ALMOST got it for spot.

    Top one ^^ bottom one is some Vegas token silver and gold plated zinc piece.
    Cool, but I probably didn't need it for the extra $10.

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    I have several Casino silver center chips I accumulated years ago... long before the silver run up. Would have to check whether the silver is worth more than the chips now...There is a considerable community of chip collectors. Cheers, RickO

  • rte592rte592 Posts: 1,668 ✭✭✭✭✭
    edited February 18, 2022 8:28AM

    @ricko said:
    I have several Casino silver center chips I accumulated years ago... long before the silver run up. Would have to check whether the silver is worth more than the chips now...There is a considerable community of chip collectors. Cheers, RickO

    I still have a fair amount that we graciously got from slot machines.
    It was a neat idea, but I recall the machines being really really tight.

    From what I understand, if it's not a rarer one the silver is worth more then the $10 face value of the chip.
    What someone is willing to pay for a particular chip is a mystery.

    I quess lots of the chips were scavenged for the silver centers and the brass rings are sometimes available for sale on their own.

    I'd prefer an intact chip.
    Some reference on this site

    https://www.silverstrikers.com

  • MeltdownMeltdown Posts: 8,791 ✭✭✭✭✭
    edited February 18, 2022 10:55AM

    A local shop I used to do some side work for ( a long time ago) got those casino chips in quite often. It was often my job to pop those centers out & toss em in a bucket for scrap.

  • TwoSides2aCoinTwoSides2aCoin Posts: 44,288 ✭✭✭✭✭

    Silver lags but it moves quickly.

  • jmski52jmski52 Posts: 22,845 ✭✭✭✭✭
    edited February 19, 2022 9:33AM

    Platinum tracks silver and is underpriced. I guess that's why I bought some more platinum today - to finish up my Queens Beast series.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • metalmeistermetalmeister Posts: 4,586 ✭✭✭✭✭

    Looks like most metals are in a significant up trend. All Silver needs is a Buffet or Elon Musk taking a sizeable position in the physical metal. (Not Paper). Word gets out....up,up,up!!!

    email: ccacollectibles@yahoo.com

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  • crazyhounddogcrazyhounddog Posts: 13,969 ✭✭✭✭✭

    I have no doubt silver will catch up. Just keep stacking em up and move forward with confidence.

    The bitterness of "Poor Quality" is remembered long after the sweetness of low price is forgotten.
  • SoldiSoldi Posts: 2,177 ✭✭✭✭✭

    Silver is rocketing tonight !!

  • rte592rte592 Posts: 1,668 ✭✭✭✭✭

    @Soldi said:
    Silver is rocketing tonight !!

    Right in step with gold...Hmmm, 🤔

  • SoldiSoldi Posts: 2,177 ✭✭✭✭✭

    Rocketed today

  • blitzdudeblitzdude Posts: 5,891 ✭✭✭✭✭

    Gold near all time high, gutter not even half way there. The gutter always disappoints, hand on the trigger to dump me paper gutter. THKS!

    The whole worlds off its rocker, buy Gold™.

  • jmski52jmski52 Posts: 22,845 ✭✭✭✭✭

    Silver didn't lag today.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
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