What's going on with silver?

Discussion of the Gold portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
User avatar
Ad Orientem
Executive Member
Executive Member
Posts: 2862
Joined: Sun Aug 14, 2011 2:47 pm
Location: Florida USA
Contact:

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.
User avatar
Ad Orientem
Executive Member
Executive Member
Posts: 2862
Joined: Sun Aug 14, 2011 2:47 pm
Location: Florida USA
Contact:

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
Executive Member
Executive Member
Posts: 184
Joined: Mon Oct 01, 2012 7:32 pm

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.
User avatar
Ad Orientem
Executive Member
Executive Member
Posts: 2862
Joined: Sun Aug 14, 2011 2:47 pm
Location: Florida USA
Contact:

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.
User avatar
Xan
Administrator
Administrator
Posts: 1952
Joined: Tue Mar 13, 2012 1:51 pm

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.
User avatar
eufo
Executive Member
Executive Member
Posts: 226
Joined: Mon Dec 05, 2016 7:17 pm

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
User avatar
Desert
Executive Member
Executive Member
Posts: 3569
Joined: Sat Jun 26, 2010 2:39 pm

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.
User avatar
Cortopassi
Executive Member
Executive Member
Posts: 1115
Joined: Mon Feb 24, 2014 2:28 pm
Location: Illinois

Re: What's going on with silver?

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

Cheaper now....
Post Reply