Something Isn't Right with Silver

General discussion board about VAMs, but no buy/sell offers
Post Reply
User avatar
HawkeEye
Posts: 340
Joined: Fri Jun 01, 2018 1:30 pm
Location: North Georgia
Contact:

Something Isn't Right with Silver

Post by HawkeEye » Mon Jun 03, 2019 12:07 am

I have been looking for this chart for quite a while and finally found someone who had done the math

This is from a web site with lots of nice analytical charts https://www.macrotrends.net/1486/fed-ba ... gold-price

You can draw your own conclusions, but to me something just doesn't seem right with the movement of metal prices and the debt the FED is carrying
fed-balance-sheet-vs-gold-price-2019-06-02-macrotrends.png
fed-balance-sheet-vs-gold-price-2019-06-02-macrotrends.png (46.1 KiB) Viewed 654 times
My conclusion would be that gold should be much closer to $3k per ounce and silver much higher than today
Deep in the woods of North Georgia

iwillbenice
Posts: 126
Joined: Sat Jun 23, 2018 4:30 pm
Location: Buffalo,New York

Re: Something Isn't Right with Silver

Post by iwillbenice » Mon Jun 03, 2019 1:19 am

I dont see all you have to offer with this graph subject.

User avatar
HawkeEye
Posts: 340
Joined: Fri Jun 01, 2018 1:30 pm
Location: North Georgia
Contact:

Re: Something Isn't Right with Silver

Post by HawkeEye » Mon Jun 03, 2019 11:53 am

Only that prior to the most recent recession the price of gold (and by some loose association silver) seemed to track with the debt on the FED's balance sheet. I assume this is the pessimism issue that goes with printing of money with precious metal advocates.

But for some reason we had an opposite reaction in the 2013 timeframe forward. I can think of no reason that the rapid expansion of the FED's balance sheet and corresponding jump in debt would instill market confidence and have gold prices go sideways. You can see in the chart the FED recent effort to unwind the debt but they seem to lack the will or ability because it would contract the money supply and economy.

Perhaps there is a concerted effort to flatten that curve, but the issues are complex with a lot of other world events. I just found it interesting that the price of gold suddenly departed from the historical tracking. The cryptocurrency advocates would point to Bitcoin and others as more reflective of any devaluation I think. They also argue that cryptocurrencies are the new gold, which I would not advocate.

But then there is the debt clock https://www.usdebtclock.org/world-debt-clock.html and the world situation is no better and smarter folks than me would have to weigh in.
Deep in the woods of North Georgia

colwillys
Posts: 801
Joined: Tue Jun 05, 2018 9:39 pm

Re: Something Isn't Right with Silver

Post by colwillys » Mon Jun 03, 2019 1:56 pm

What country is holding the gold and silver .. if a bad country is holding large amounts of the metals
that would help make their currency's worth more , the United States does not want that to happen .

User avatar
HawkeEye
Posts: 340
Joined: Fri Jun 01, 2018 1:30 pm
Location: North Georgia
Contact:

Re: Something Isn't Right with Silver

Post by HawkeEye » Mon Jun 03, 2019 3:38 pm

Well the US still holds the most with about 8,000 tons. China and Russia hold a lot, but not nearly that much. The last thing I read was that we have about 25,000 tons of silver, but that is small. Germany I s second in line.

The single biggest use of gold is in jewelry, primarily in countries like India.

https://www.usdebtclock.org/gold-precious-metals.html

This page also pegs silver at $592/oz and gold at $4827/oz if the same dollars in 1913 were used as a basis

The world factors that come into play might just be too complex to analyze
Deep in the woods of North Georgia

Post Reply