Predictions for gold and silver prices?

The price ratio between silver and gold means nothing. It is a relic of past centuries when the production of both metals exceeded demand for rather brief periods. Two examples were the California gold rush when there was a surplus of gold. The “Arrows and Rays” silver coins of the 1853-5 were a reflection of that. In the 1870s to the early 1900s there was a glut of silver. The “free silver movement” was a reflection of that.

The truth is there is no “magic ratio” between the two metals. They are commodities whose prices nothing to do with each other. Attempts to have a bimetallic monetary system always failed. The truth was gold and silver coins were effective mediums of exchange only when their face value was more than their melt value. Otherwise people withdrew the coins from circulation. “16 to 1” was mostly a political slogan. If it were true, it was only valid for a rather brief period.

 

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Oh, it's meaningful, exactly as meaningful as "pork bellies per barrel of oil". It's the ratio of the price of two commodities, no more, no less.

 

But if you have a "stake" in both, well, then.....

I mean, who doesn't like munching pork bellies barbecued over a barrel of open flame Texas Crude?

 

https://elements.visualcapitalist.com/charting-the-gold-to-silver-ratio-over-200-years/

 

That's an unusually terrible graphic. Why did they mirror it around the X-axis? Why did they leave off any scale levels? And what "values" are they comparing? The price of gold/silver in what market/venue?

"Once the metal prices started to fluctuate due to market forces, the ratio did as well." At what point were "market forces" turned on for the metal prices? During what historical period were there not "market forces"?

 

All pm,s seem to be doing well, going to pick up a couple 1 OZ pamp bars today to
add to the collection

 

"Ratios" are meaningless, guys.

Oil and natgas used to trade at a 6:1 ratio, it's been closer to 30 to 1 for decades.

 

Bump old thread
So here we are Eric
Same old, same old. But we’re all older
Back in 2024 I was saying silver was spring loaded. Nobody really much agreed.

 

Both GOLD and SILVER have had massive up tics in the past few months, its not a question of if but one of when GOLD surpasses $4,000 on once and SILVER is above
$65 its right around the corner

 

When does the bubble burst though or does it? I'm just happy to own some of each.

 

That's one of my burning questions. Sure, gold will hit $4000 and then $5000, and silver will hit $50 and then $100. It's just a question of whether they fall back to $2000 and $25 first.

 

Any of those scenarios would reflect the state of the world is bad. That much volatility means things are screwy.

 

I would expect a 25% pullback in gold at some point. Might not occur until after it has hit $5,500 an ounce leaving it at $4,125 after the big hit.

 

Be careful what you wish for. Ridiculously high precious metal prices will ruin the numismatic hobby. Gold prices are already ruining a large portion of the numismatic gold coin market. Common date $20 gold pieces are nothing but bullion even in choice collector grades like MS-64.

This is scary part. Will the bubble burst and leave individuals and major financial institutions with huge losses.

In the late 1970s, gold hit $855 and silver $55. The bubble burst, and those prices did not recover for decades. Back then banks worked to keep gold prices down and investment advisers told their clients to limit their exposure. The Hunt Brothers tried to corner the silver market by buying the medal with excessive leverage (debt). When the bubble broke, they went from billionaires to bankrupt.

Yes, it possible to overpay for anything. If the banks are really as deep into this as reported, I shudder to think what will happen if there is a major correction.

 

Well, it's certainly a good thing that isn't about to happen.

 

Wouldn't the current prices indicate the state of the world is bad right now? Look at how quickly prices are changing. Last November the US Mint put out the one FULL OUNCE gold flowing hair with a BIG premium. What was it $1k+ premium?

Everyone thought it was crazy and as usual complained. $3,645 was the issue price. They sold out in under 7 minutes and never returned. I said it won't be long and melt value will surpass what those were, as has constantly happened since I've been collecting. A mere 10 months later, here we are. Now they want $3k for a HALF oz proof coin.
I'm hoping it pulls back because pricing is getting so ridiculous. If things were going well and under control we should be seeing 2000 metal prices or close to them. It's only been 25 years. That is not a whole lot of time in the grand scheme of things. I'd say it'd be reasonable if gold was $1k/ oz or thereabouts, given the period of time.

But there's so much cash out there now, if gold dropped to $250/oz for a week you couldn't get any. It would all be gone immediately. If it dropped to $1k/oz it would all be gone now. Based on what we've seen lately, it'd clear out at $2k as a bargain basment price. It wasn't that long ago, $2k/oz was crazy. Those days are over with all the cash that's out there now. And continually increasing. It's the only way life can continue with the system we have. The prices have to keep climbing. Imagine another 25 years from this point? Again, not a lot of time. Gold could be $10k/oz by then. Maybe more.

 

As long as we have conflict in the world prices will continue to rise, I dont see anyone of the wars were involved in coming to an end anytime soon, I bought allot of GOLD at under $1,500 an once so the averages are really playing out for me

 

Oh good! Xmas presents all around.

 

Then we can call him Lord Cusa.

 

Does anybody here buy sub-1 ounce modern (1/2, 1/4, 1/10th ounce) gold coins for Eagles, Maple Leafs, Krugerrands, even Libertads ?

I was wondering what the premiums on those have done as gold has risen....I'm assuming for generic commons, not a special limited run which has scarcity value and for which you might have to pay up.

I remember buying some over a decade ago and aside from an occasional outlier here-or-there....I mostly paid within 10-15% premiums of the gold content (this was when gold was anywhere from $300 - $1,200 an ounce). Sometimes if my LCS was low on stock I'd see a 1/4 or 1/2 ounce Eagle at 20% premiums but it was mostly on the 1/10 ouncers that you got "ripped off."

Haven't bought one in over a decade.... but judging by the comments here and on other forums.... as the price of gold slowly rose over the last decade or so, premiums returned as the coins were still more affordable than a full-ounce coin -- would you say that is correct ?

P.S. All the coins are raw