What's going on with silver?

Discussion of the Gold portion of the Permanent Portfolio

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Ad Orientem
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What's going on with silver?

Post by Ad Orientem » Sun Aug 12, 2018 2:47 pm

Current spot is $15.31 with the silver to gold ratio within spitting distance of 80:1. Dear G-- I'm actually thinking about taking a trip to my local coin shop tomorrow and picking up some generic bars. Something is wrong. I need to go lie down.
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Ad Orientem
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Re: What's going on with silver?

Post by Ad Orientem » Sun Aug 12, 2018 4:09 pm

To add... I'm not a silver guy. But the spot price has dropped dramatically from its 2011 high of $49. And even more interesting is the gap in the silver to gold ratio. 80:1 (!) has been the very high end for what might be termed a normal price ratio. Going back to the early 1970's this has typically been a buy signal indicating that silver is undervalued relative to gold. See this...

http://www.kitco.com/commentaries/2016- ... atios.html

I can't ever remember speculating in precious metals, and silver has held little interest for me. But I am starting to think it might be time to stick my toe in the silver market. Even if metals continue to fall relative to paper money (which given the current macro economic situation might well be the case) it seems likely that the gap between silver and gold will close and any silver could then be flipped for gold. Hmmm...
whatchamacallit
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Re: What's going on with silver?

Post by whatchamacallit » Sun Aug 12, 2018 4:45 pm

Same deal with platinum which is supposedly more rare than gold. Platinums existence as a precious metal more rare than gold makes me question holding gold.
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Ad Orientem
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Re: What's going on with silver?

Post by Ad Orientem » Sun Aug 12, 2018 5:24 pm

Platinum does not have the same historical pedigree as gold (or silver for that matter). As far as I know it has never been widely employed as a store of value or a medium of exchange for goods and services. And it is not very liquid.
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Xan
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Re: What's going on with silver?

Post by Xan » Sun Aug 12, 2018 8:22 pm

Just the fact that something is more rare than gold doesn't make it more valuable.
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eufo
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Re: What's going on with silver?

Post by eufo » Sun Aug 12, 2018 10:19 pm

I've been dipping into buying some physical silver once we went below $16/ozt. Seems a bargain to me. I doubt I'll get any platinum, palladium, rhodium, etc.
Don't agree with me too strongly or I'm going to change my mind
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Desert
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Re: What's going on with silver?

Post by Desert » Mon Aug 13, 2018 6:00 am

Platinum is an industrial metal (catalytic converters and hydrogen fuel cells, for example), so it's driven by different factors than gold.
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Cortopassi
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Re: What's going on with silver?

Post by Cortopassi » Mon Aug 13, 2018 4:02 pm

Cheaper now....
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Ad Orientem
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Re: What's going on with silver?

Post by Ad Orientem » Wed Aug 15, 2018 9:46 am

Silver is in something close to free fall. As of this moment it's trading at about $14.50. and the silver gold price ration is at 82:1. I've been extremely busy over the last few days and have not had a chance to get to the coin shop. If I can't break free today I may just order some online.
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ochotona
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Re: What's going on with silver?

Post by ochotona » Wed Aug 15, 2018 10:12 am

Ad Orientem wrote:
Wed Aug 15, 2018 9:46 am
Silver is in something close to free fall. As of this moment it's trading at about $14.50. and the silver gold price ration is at 82:1. I've been extremely busy over the last few days and have not had a chance to get to the coin shop. If I can't break free today I may just order some online.
Free fall and 82 sounds irrational
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Re: What's going on with silver?

Post by eufo » Wed Aug 15, 2018 10:28 am

We all know how irrational works. It can go deeper than anyone expects. I just placed another order for silver. I'm going to buy more gold soon too. My US Dollars are putting in some awesome work! I've been cash heavy for a bit and was worried about so much exposure, but it turns out that was the thing to be in.
Don't agree with me too strongly or I'm going to change my mind
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ochotona
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Re: What's going on with silver?

Post by ochotona » Wed Aug 15, 2018 5:11 pm

Radomski thinks the extreme ratio is 100 : 1. See Gold Scream Room thread.
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