so why is silver stagnant

Unfortunately for the agendas, higher prices will be needed to bring higher silver supplies to market for the growing alternative energy and other applications.

 

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The majority of silver production is from by-product of other mining processes (copper, lead, zinc, gold). Demand for the primary ore has a bigger impact on silver production than actual silver price.

 

That's a positive for the silver price. The supply is relatively fixed and unrelated to the price of silver, while the demand is growing quickly from newly invented applications.

 

It's absolutely amazing that we are talking about 1oz gold at $1120 and 1oz of silver is still UNDER $20 bucks! Really it is....

Palladium/Platinum all being much higher as well...either silver is going to have a really really big rocket ride or it's always going to be the odd stepchild of all the PM's....

 

#4.....lets face it. 787 Billion dollars, yet I haven't seen a credit card offer in the mail now for about two years. I remember the day when you'd get two or three credit card offers a day in the mail. So, 787 billion dollars and nobody is getting any new credit......So, where is all of that money going......creating asset bubbles in the stock market, that's where. Unfortunately, gold is a stock as well, and subjected to big bank bubbling as well. As was previously stated, silver isn't such a big player, so banks aren't chasing it with their 787 billion dollars of tax payers money.

 

The only problem with this is that as the economy improves, the dollar tanks as people sell their dollar bills to buy into more riskier assets, like equities.

So, an improving economy would be doubly bullish. Once for the economy improving, thus requiring the use of more raw materials (copper/silver, etc.) and the dollar bill will tank at the same time due to the improving economy thus pushing commodities up even further.

P.S. This might already be happening.

 

Platiumum is also related to this but its price is rising like gold.

 

Platinum 5 year high is over $2250.00.

 

Historically though, I thought this ratio to be closer to 15. Is this not correct?

 

And Gensler is a former GS employee. So, do you really think it will change?

 

First of all, I don't think that will necessarily drive his decision. Second of all, neither one of us knows how GS is positioned relative to silver and whether they want higher or lower prices.

 

Up over a dollar today, not very stagnant today. Wonder if it will correct tomorrow?

 

How can you say its stagnant when its up over 41% YTD ?? What do you mean by stagnant?

 

Yeah, but you can't go by that anymore. The price is more locked into what it costs to mine and produce an ounce of gold vs. an ounce of silver. Because silver is mined as a secondary metal to a lot of base metal mining, it isn't figured into their operating costs and is seen as a boon to the base metal business. For this reason, silver is much cheaper to produce than gold, on the order of 50 or 60 to 1. And that is why the ratio is about 50-60 to 1, now-a-days. Of course, if the entire supply of gold and silver where mined and none of it were left in the ground, you'd expect the ratio to go back to the ratio of what is currently available above ground.....and right now, there is less silver than gold in terms of volume.

 

Good analysis! :thumb: