Discussion in 'Bullion Investing' started by Soiled, Apr 1, 2016.
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At the time it was a Russia PL. 25 Roubles=i oz. .999 collector coin. Back then the PT 150 Roubles was 1/2 oz.
Shows how rare paladium is.....
I guess ppl sell gold and silver to cover stock lose.
I didn't think about all the folks needing quick cash to cover derivative positions! Ugh. I'm always glad that I'm not leveraged, but especially this week...
Cash crunch along with price is determined by leveraged paper.
Slowing growth fears. Massively reduced demand. Deflation.
It's not perfect, but it was a generality from 6 months ago.
Silver is always a very weird bird. Yes, it is a PM, but it is also an industrial metal. You never really know which aspect of silver will predominate, meaning its never a good substitute for gold.
In short, because the markets are no longer controlled by the market. The sum of mid-size and small-size funds or market participants used to be able to balance and compete with the large funds. That is no longer the case.
Couple that with the large funds today having far superior technology and hence the fastest connections (time of trade execution in nano seconds), and they are able to squeeze all the blood out of any fish smaller than them.
Be patient, I think there's a good chance of $2000 in the not-too-distant future.
Still, the total gold ever mined in all of history would be a solid cube 60X60X60 or a medium sized house. Paladium is at close to $3000@oz. / Gold is at $1600.
But then Silver is severely underpriced/ as is gold. If a Country like the US would go back on gold standard, price would have to go WAAAAAY up
The banking system/ Wall Street are doing their best to keep prices artifically low.
I think that would have been an historical anomaly. In ancient times, while in an area or two it was as low as 10-1 for a period of time, the ratio was usually 12 to 16 to one. In the US, before abandoning the gold standard, we were 16:1, so was most of the world.
"If we went back on the gold standard"....we won't. No country will, since gold is only one, relatively unimportant commodity. No sense to tie an entire economy to the market whims of a relatively unimportant commodity. It would make more sense to tie it to price of oil, or a large basket of commodities if you wanted to go down that path.
It's less abundant and more attractive to humans I suppose.
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