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Discussion Topic: Gold-Silver ratio for bullion coins
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jpdell33 |
08-20-2020 @ 10:35 AM
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Joined: Jun 2016
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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.
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bmurphy |
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08-20-2020 @ 11:36 AM
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Joined: Jul 2007
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Interesting
thanks much
Bill
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Ottomani |
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09-09-2020 @ 1:58 PM
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Joined: Sep 2020
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Did the Hunt brothers really try to corner the market,
or were they just fall guys?
(https://www.youtube.com/watch?v=uG4sjFnX6YQ)
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jpdell33 |
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10-16-2020 @ 2:13 PM
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Joined: Jun 2016
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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.
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jpdell33 |
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10-16-2020 @ 2:24 PM
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Joined: Jun 2016
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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.
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sohamjoshi |
12-03-2020 @ 12:46 AM
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Joined: Dec 2020
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it's great
Thank you for this great post
raw diamonds
sale
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jpdell33 |
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02-03-2021 @ 4:43 PM
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Joined: Jun 2016
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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.
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jpdell33 |
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11-17-2023 @ 10:27 AM
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Joined: Jun 2016
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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.
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jpdell33 |
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07-17-2024 @ 11:20 AM
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Joined: Jun 2016
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The silver - gold ratio for most bullion coins is
currently close to the recent norm is 60-1. This is
based on my random checking of the price for
uncirculated silver eagles (a little over $41) and gold
eagles ($25-2600 depending on the days spot activity).
It has been always my opinion that this represents the
true price of gold and silver as they are based on pure
consumption - an open market price that is not subject
to commodities market gamesmanship.
The interesting thing is that for several years now the
commodities market has had roughly a ratio 80-1. I
wonder if this is going to become the new standard. In
the 19th century the ratio was 10-1, later became 20-1
until the Roosevelt gold confiscation. Then 35-1 and
on to 60-1 after the dust settled from the oil shocks
and Nixon taking us off the gold standard. It will be
interesting to see if increasing gold scarcity drives
the consumer price in this direction.
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