When looking at the AU/AG ration over all time periods available on most websites that provide this as free information, it seems that the ratio has plunged, even as AU appears to be traveling along a bottoming formation.
What this seems to suggest is that silver will either remain relatively static and gold will advance, or silver is due to trend downwards as gold remains static. The latter seems more likely, given the efforts of the mega banks to pull out all the stops to support the counterfeit money they are bringing into existence through QEn’s.
Also, given the super wealthy banking industry’s backers (banksters) to continually transfer wealth to themselves, that latter course of action could be guessed at as the likely trend.
These statements are based on information from a website called “GoldPrice”.
Does anyone have a rational explanation why gold sells off on news that they may find an eventual solution to raise the debt ceiling? As the debt rises inexorably toward 20 Trillion, paper presses running non stop and no credible plans to get control of spending, one would think gold would rise sharply. How can anyone consider to raise interest rates with debt burden exploding?
I just do not get it and the AUY sell off for no reason.
Great point. The fact that they're going to continue raising the debt ceiling, and our national debt continues to grow to ridiculous levels, should be great for gold. The government's now spending 38% more than it takes in, and the national debt is over $16 trillion! Are you kidding me? Gold and silver will be the only investments (along with land, oil, commodities) that will be worth anything in the long-term future.
Sentiment: Strong Buy
AUY is not selling off because of insider sales. It's selling off for a few reasons:
1. There's a fundamental belief now that Congress will be able to compromise on debt/spending. Republicans are learning that their lies, cheating and scheming is hurting their brand. So, they'll compromise. Wall Street doesn't like uncertainty. Bad certainty is waay better.
2. Employment is rising, equities are ready to go!
3. End of QE is coming
I'm in deep with AUY but 2013 could be a tough here for gold.
GOLDPRICE is a good site for watching old and silver pricing. The charts are useful...
Since the Swiss are starting to ask where their gold is, I think that the Fed will have it's hands full as it attempts to deal with all of the requests by Central Banks for repatriation of physical metal.
None of the re-hypothication of gold leasing mattered until nations started looking at the Currency War and began the process of taking stock of their actual assets. Now all Central Banks are wondering how they will get their gold back and the Fed is in full price suppression mode as it attempts to stall delivery.
Rest assured that eventually China will pull the trigger on the sale of US Treasuries and simultaneously buy gold "in size" across the entire futures strip. It is only a matter of time. When it happens, the COMEX will default and the GLD and SLV funds will have holders of 50,000 shares calling in the metal.
MF Global was the test facility for dealing with the re-hypothication scenario and we have all watched in dismay as account holders lost their assets to those who were in possession of the physical asset being used as collateral by the house...
Sentiment: Strong Buy
First of all, PMs belong to the people as a medium of exchange, and NOT GOVERNMENTS. It seems that “vrgldn” has not read our constitution, possibly because he/she is not from this country. His assessment that, “My sense is that the AU/AG ratio is going more towards 1:100 than the other way, as silver has always been, …” is pure balderdash.
The Constitution set up a ration of 15 to 1, under the direction of Alexander Hamilton. That was the country’s first mistake, among many, by taking the advice of those aligned with the banksters.
The reason the 15:1 ration was used is because that had been the historical average back before the country was formed, and was therefore the ratio under the Constitution. In addition to being a market driven ratio, before the current pervasive manipulation, it also happens to be the ratio in the earth’s crust. You can pick your current experts on this subject, and many are tending to state that the AU/AG ratio is narrowing because silver is being used up in various industrial processes, whereas AU basically remains intact from the day it was mined. The only reason this is not happening is that the markets are manipulated with the blessing of a fraudulent regulatory system.
That is why the current ratio is so interesting. Gold has been on a downtrend to flat for about 1-1/2 years. All signs point to it turning up. If it does turn up it will indicate a realization that the funny counterfeit paper money everywhere is heading for extinction. Of course there are all those arguments out there that in our modern world this cannot happen because there’s not enough “real” money, or so the thinking goes. There are word limitations on posts, so we’ll leave it at that.
Then there is this attraction to silver by the masses who are going to start realizing that gold is out of their reach, and silver is their only alternative, so silver should explode in price as gold turns upwards to bring about a lessening of the ratio of AU/AG (i. e., they will start approaching each other in price as demand for AG means higher prices). That speaks to the arguments that the demand for it for many as a cheaper alternative will also mean a lessening of the AU/AG ratio. This is what is going to drive the banksters “nuts” because they will then have lost control, with many of them fearing imprisonment.
The trouble with all prognostications like this is that there is no timeline, even though many gurus attempt to divine one. So it takes extreme patience to outlast the criminal intentions of the central banks. That is the most difficult part for any trying to “buy low” since “low” appears to be at the point where most realize that our money is truly fraudulent, and they better find alternatives before it is too late.
But just remember, stupid is as stupid does. The dawn of understanding requires the acquiescence of the least common denominator on this particular issue, which could still be a long way off.
I agree with your assessment about AU /AG ratio.
My sense is that the AU/AG ratio is going more towards 1:100 than the other way, as silver has always been, and will always be, relatively less valuable than gold.
vrgldn said: “Please read again what you have written. Does it make any sense?”
If you have something to say/write, back it up with expert opinions or links based on the law. Unfortunately Yahoo has made it a lot more difficult to do so, but that is no excuse for making up your own statements that do not reflect the facts.
1. You said, “…PMs are not 'set up' (like you say) by a single institution. They are very much global in nature.”
The US Constitution says in Article I, Section 8:
“The Congress shall have Power,…
…To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;”
The US Constitution states in no uncertain terms who coins the money, and who regulates its value in this country. Until Yahoo becomes a foreign corporation, and all the visitors to this message board are foreign, we are speaking about how “money” is regarded in this country.
You are correct that PMs are global, and will retain their value regardless of the obscene manipulation that is taking place to lower their value in defense of fiat money.
There was a company that attempted to mint a silver coin, the Liberty dollar, to make it, in effect, legal tender. Those wanting warehouse receipts instead could retain them, and if they wanted the actual coins they could present them to get the coins in return, which were stored by Sunshine Mining. The US Government threw the company principles in jail. There are other examples that met the same fate. This company was operating legitimately in view of providing honest value to those who bought what they had to sell. So you see the criminal enterprise, which has become the US Government, banksters and all that support fiat money, are operating outside the US Constitution. (See the Coinage Act of 1792.) They will go to any lengths to see that what is currently in place stays in place. Welcome to Prison Planet.
2. Silver tarnishes, but not so much as to reduce the metal content, and therefore its value. Links can’t be placed here to back up that assertion, thanks to Yahoo, that prefers to allow those that make ridiculous assertions get away with it. Anyone who doubts that needs to get off their lazy #$%$ and check the many browser links that support the fact that tarnish does not degrade the value. Shipwreck coins recovered by Odyssey Marine Exploration from the Republic which sank in a storm off the coast of Georgia in 1865 are worth more as artifacts than their face value, or current bullion prices. They do have saltwater damage. Most of the deterioration comes from ocean currents that cause erosion due to the movement of sandy grit where the coins are located.
3. The ratio in the Earth’s crust has to do with rarity, and difficulty in extraction. There are many references to how this ratio was arrived at on the Internet. Don’t go making up your own. Only the stupid will believe you.