With my post earlier this week I postulated that the real price of gold and silver is found in the unmanipulated free market in gold and silver bullion coins. To that end I sampled some of the more prominent dealers prices - JM, Blanchard, Monex, and others -for uncirculated Gold Eagles and Silver Eagles. This would give me an apples to apples comparison as most dealers offer a variety of products at various prices. I found that this morning's average price for 1 oz gold was about $2050 and 1 oz silver was about $34.50. This is almost exactly a 60- 1 ratio. The same ratio (on average) that existed for the 25 years following 1980, or after that earlier runup to $800 gold and the Hunt Brothers attempt to corner the silver market.
I don't know about the facts behind this youtube video, no doubt they had silent partners working with them. The Hunt brothers involvement is pretty much established history for more than 40 years now.
Checked the price of Silver bullion coins today. The premium has dropped considerably ($5+) as West Point has delivered more coins to its distributors. Demand has also dropped as the panic over covid-19 has subsided. Yet as I write this the second wave has started. If it proves more deadly (like the 1919 flu) there could be a return to panic buying. Overreaction to the Presidential election -from the right or the left - could increase the desperation level, as well as the realization that many folks will be permanently unemployed and debt skyrockets to infinity. A vaccine is still months away and may not work very well as cases of reinfection keep cropping up.
Premiums for silver coins are about $13 over spot. Quite a premium for a non-collectable. For people to buy it at that price means they expect the price to rise to $50 or more.
Checking the latest prices for uncirculated U.S. Silver and Gold 1 oz coins has gold at about $2100 and silver way off its premium highs available at about $30. A gold to silver ratio of a more normal 70-1. As I have always maintained, this unmanipulated free market represents the real current price for gold and silver, that can be readily known and acquired.
jpdell33
08-20-2020 @ 10:35 AM
12-03-2020 @ 12:46 AM