Are the metals on the move?

2년 전

For what seems like an eternity silver and gold have been on trend downward. In case you weren't aware I have posted a 10 year chart of the gold price. And yes, since 2011 the price has consistently trended downwards. There were some periods of recovery but those were few and far between. It seemed like there were just lower highs and lower lows.


Kitco Gold Chart

Then in December 2015 gold appears to have bottomed under $1100 and since then the price has started forming higher highs and higher lows. For those holding the yellow metal they are starting to be more bullish. I think some people that sold off their gold for bitcoin may be switching some back to gold.

Where do the metals go from here? I am not sure. They could always fall back down and start another bear trend but it seems like they are forming a stronger base seemingly every day.

The silver to gold ratio currently sits at over 82:1 as it takes 82 ounces of silver to equal the price of one ounce of gold. I have heard recently of some people switching their gold holdings to silver in anticipation of silver heading higher in terms of percentages than gold. Only time will tell!

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i'm just going to keep stacking silver. i think the historic average for gold/silver is a lot lower than 82:1-- should be interesting and fun.

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Yes you are right there! Historically this has been much lower!!

I wonder how the price influences supply? I went on this crazy mine tour a few years ago and it was basically saying gold was easy to find just laying about in the old days. Then all of that was found and people had to dig deeper for gold. When gold price is low, mining is cost prohibitive. Running the equipment, digging deeper for small pieces... not worth the time or effort. If moreaffordable mining tech comes out or if the price of gold is high it is worth the extra effort to dig more. Assuming this is the case with all metals. I am not sure where I am headed with this but it was super interesting. ☺️

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You’re exactly right though! If price is low the mines don’t have an incentive to mine it which lessens supply which drives up. If the price is high it incentivizes miners to mine it creates an over supply and price typically falls.