EDIT
Gold: 1198.80 -8.10▼
| Silver: 14.25 -0.05▼
| Platinum: 826.00 -7.00▼
| Palladium: 1048.00 -1.00▼
Close Fri 21
Contributed Commentaries
Gold-Silver Ratio Exploding
Todd ‘Bubba’ Horwitz
Thursday September 20, 2018 08:16
The gold-silver ratio has exploded to one of the widest margins in history, with gold trading almost 85 times the price of silver. The ratio set by law is supposed to be 15-to-1; how did we get to 85-to-1? This is the highest level since the 2007-2008 global financial crisis.
To some degree, having such an extensive history on how the prices of gold and silver relate to one another can be useful for investors. Today’s ratio of nearly 85-to-1 would certainly suggest that silver could be the more attractive investment opportunity than gold at these prices. Of course, markets don’t have to make sense and the ratio could widen still.
When investing in any financial product, hard asset or commodity, there are no rules, only probabilities. Although we like both gold and silver here because of the large spread, we would be bigger buyers of silver. We are looking for both gold and silver to break out to the upside, but first we must suffer through the pain of consolidation.
By Todd ‘Bubba’ Horwitz
Contributing to kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Popular In the Community
Sponsored
Mining Companies Need To Focus On Building Assets Not The Gold Price – Revival Gold
OrangeHat
3d
How many cell phones are there in the world? Just 330,000 cell phones contain 10kg of recoverable gold. Assuming that there are 3.3 billion cell phones in the world, that alone would account for 100 metric tons of gold consumption– or 3.2 million troy ounces. And that’s just cell phones. Nearly as much gold is used in electronics as is used in jewelry.
Is This Time Really Different? Fed Tightening and Gold
OrangeBattery
1d
since the alphabet soup of bailouts and ZIRP I have been hearing about how well gold will do against low real rates. in a word, it has not happened. Gold went from 250 to 1920, primarily because of debt and deficits. in 2000 to 2006 we talked about the twin towers (fiscal and trade deficits), then there was subprime and the PIIGS. if THE GOLD MARKET HAS TAUGHT US ANYTHING, IT IS THAT GOLD PRICE WILL LANGUISH UNTIL INVESTORS TAKE DELIVERY. The POG trades on paper, and one can short it till the cows come home. Unless of course, shorts get burned alive when folks insist on physical.
Gold Extends Early Losses As USDX Moves To Daily High
RedBucket
1d
Yesterday US$ fell to 6 week low, gold moved up $.50 ,today $ moved up a little gold falls $15 in a minute but according to Wyckoff it’s all about US$
Gold Expected To Gain Some Luster After Fed
bearboy1026
1d
gold is down because today is option expiration day on the phony Comex, so they needed to knock it down under $1,200 to once again steal option $$$ from the longs. same game every month. Rothschild sets the gold price and $1,200 is not to be exceeded
Paulson launches alliance to seek better returns in gold sector
RedBucket
1d
About time someone will keep those crooks running gold mines accountable……..
Gold Prices Remain Down Following Mix Preliminary U.S. PMI Data
silvercoin
1d
Sentiment in the poor boys gold sector (silver) is that they’re buying the hell out of physical silver at this price. The Mint is running out. Further drops in price only increases buying. Thank you Fed and dollar.
U.S. official in Russia probe suggested taping Trump, 25th amendment: NYT
PurpleCar
1d
Our President Trump IS part of the Deep State!!! The voters thought they were putting in their savior – a drain the swamp guy etc. He’s a billionaire and one of the 1/10 of 1% that wants to keep his family and cronies in power. Don’t be fooled by his propaganda!!! What is bad is good – up is really down – blue is red – black is white. The sheeple follow while the wolves take out the voices on the edges. SHEEPLE – follow and believe in the TRUMP!!!!
U.S. ‘very close’ to proceeding with Mexico-only trade deal: Trump adviser
PurpleBlowdryer
1d
Mexican peasants are about to get shafted again.
Friday Charts for Gold, Silver and Platinum and Palladium, September 21
CyanCandy
1d
buy gold…
RJO’s Haberkorn: Gold Tends To Rally After Fed Announcements
OliveSeahorse
1d
How much gold is Trumperdink buying with the money from renting lodging space to the Secret Service that protects him as well as his whole family. Crassy guy.
Bullish Or Bearish: Gold’s Next Trend Is Up To The Fed
PurpleScissors
1d
The FED should be Abolished! these markets are so manipulated and fake. gold’s continual smash regardless of any substantial news is so obvious to anyone even remotely paying attention. the most absurd thing is these ridiculous articles act as if somehow the fed’s takeover of markets is somehow justified, and never ever mentions their trading desk and the plunge protection team. When this markets crashes I am going to laugh. END THE FED!
Falling Dollar Keeps Gold Sell-Off in Check
GoldRaindrop
2d
please Wagner,can you try a little harder to write something useful. gold sells off because the central bankers want it to stay down to support the fake markets.
Trump administration a threat to international peace and security: Iran’s Zarif
