103.5 to 1

[FormerTeller]

Gold/silver ratio is currently 103.5 to 1. I went to my LCS today to sell a 1/2 oz Canadian Gold Maple Leaf and buy silver, but everybody and their brother was buying up silver - there was no fine silver, and little 90% left.

Anybody here have any luck?

 

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[CJ9]

I haven't tried, but if you go to bgasc.com, they are not accepting any orders over the weekend (they usually do), and they cite a large number of orders that they have received - so people are buying.

What I don't understand is why is silver down to $14.70/oz. I get that industrial use demand will fall, but US interest rates are lower and even on a relative basis compared to the rest of the world, they are now lower, so you would think that silver would rise. The only thing i see is that the US $ has appreciated somewhat in the last week or two, and a stronger dollar usually means lower metals prices - but the US$ isn't up that much.

 

[FormerTeller]

My guess is lower current industrial demand, and lower anticipated industrial demand in the foreseeable future. I notice that gold fell, silver fell harder, and palladium absolutely tanked. Great time to get in if you can IMO

 

[Mackaydon]

Ratio now 115: 1
Don....

 

[FormerTeller]

We are in uncharted waters.

 

[EQ8]

I haven't tried, but if you go to bgasc.com, they are not accepting any orders over the weekend (they usually do), and they cite a large number of orders that they have received - so people are buying.

What I don't understand is why is silver down to $14.70/oz. I get that industrial use demand will fall, but US interest rates are lower and even on a relative basis compared to the rest of the world, they are now lower, so you would think that silver would rise. The only thing i see is that the US $ has appreciated somewhat in the last week or two, and a stronger dollar usually means lower metals prices - but the US$ isn't up that much.

Since the fed just squirted out some 700 billion in fiat money, I believe you will see the dollar weaken?
Please correct me if I am wrong.

 

[Mackaydon]

FormerTeller,?
Actually, we're heading back into waters charted years ago. As a former teller, do you remember when $1 silver certificates could be exchanged the same day for $1.50 in change at your LCS? Or do you remember $5 silver and $300 gold? Hopefully, we're not going there now--but we've been there before and within my business career.
Don......

 

[CJ9]

Since the fed just squirted out some 700 billion in fiat money, I believe you will see the dollar weaken?
Please correct me if I am wrong.

Yes that is what I think, the dollar will weaken as the Fed cut and went to QE. However, given that Europe may be considered a bigger disaster, the US$ may hold up relative to other currencies near-term. Metals are getting smashed today because I think people don't want to own any asset at the moment - they are hoarding cash (and TP). As such, the usual factors that drive metals prices higher are not in play, IMO.

 

[TheMastermind]

My local shop has pulled all 10-ozt., kilo, and 100-ozt. bars, only selling 1/2 ozt. Maples for $9 a piece and slabbed coins.

I asked if that's all he had, he said that's all he's selling right now.

Smh.

 

[FormerTeller]

FormerTeller,?
Actually, we're heading back into waters charted years ago. As a former teller, do you remember when $1 silver certificates could be exchanged the same day for $1.50 in change at your LCS? Or do you remember $5 silver and $300 gold? Hopefully, we're not going there now--but we've been there before and within my business career.
Don......

I’m afraid silver certificates were before my time, but I do recall $300 gold and $5 silver - a 60:1 ratio. My point was that this is the highest ratio of gold to silver in over 100 years, possibly ever.

 

[weighit]

Stopped into the local coin shop this morning, was 10th in line and watch him selling 5 oz bars for $6.10 over spot! Guy in front of me complained and the shop owner said last week you could have bought the same bars at $1.25 over spot. I left and two more were coming in the door, not me buy silver at that rate.

 

[Diver_Down]

Stopped into the local coin shop this morning, was 10th in line and watch him selling 5 oz bars for $6.10 over spot! Guy in front of me complained and the shop owner said last week you could have bought the same bars at $1.25 over spot. I left and two more were coming in the door, not me buy silver at that rate.

People need to accept that regardless of what the melt price, the demand sets the price. It's laughable to think that a dealer will be selling at $13/oz. Their costs haven't gone down in the past decade+. They pay for the same groceries/gas/utilities/etc. than the consumer.

 

[fistfulladirt]

The dumping of paper silver contracts are what’s setting the low price.