The Coronavirus has officially reached the “pandemic” status. It’s a scary word that means the coronavirus has crossed international boundaries. So, what does this mean for the markets?
Many of SchiffGold clients hold silver patiently waiting for a drop in the silver to gold ratio. I am very much one of these patient holders of silver.
For those who aren’t familiar, the silver to gold ratio is exactly as it sounds: the price of gold stated in ounces of silver.
Today the silver to gold ratio is trading at about 87:1. In simple terms, this means it takes 87 ounces of silver to buy one ounce of gold.
Lately, palladium has exploded in price. It’s stirred up a lot of buzz, and we’ve seen significant palladium sales (both clients buying and selling) in the last few weeks. In fact, there has been more interest in this metal than we have seen in the 10 years of SchiffGold’s history. However not too many people know much about palladium or its history.
Palladium, platinum, rhodium, ruthenium, iridium, and osmium form what is commonly called the Platinum Group Metals (PGMs). Palladium is one of the rarest metals on Earth found in 0.015 ppm (parts per million).
Platinum has caught the eye of customers lately given how relatively inexpensive it has been trading compared to other precious metals.
Even though throughout history platinum has been cheaper per ounce than gold, platinum experienced a major spike in price from roughly 2000-2008. Since then, platinum has remained less expensive than gold, and this has caused some people to consider it a better potential speculative play versus simply buying gold.
A week ago, nearly $100 billion in short-term liquidity was added via the Federal Reserve Bank of New York offering cash in the repo market.
As a reminder, the repo market is the overnight market of repurchase agreements. This is where one sells an asset with an agreement to purchase it back at a slightly higher price the next day. In other words, very short term collateralized lending.
This article was written by Joel Bauman, SchiffGold Senior Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
The current debt-based fiat monetary system creates an illusion of wealth expansion.
For example look at this 100-year price chart of the Dow Jones Industrial Average.
This article was submitted by Joel Bauman, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
A few months ago I spoke with a woman who challenged my profession in precious metals. “Don’t you know gold can be created from lead?” she said. She then informed me that the best thing to do in the coming years was to avoid the purchase of precious metals, fiercely warning me of a coming gold collapse. “There will be a mass production of gold!” she hung up the phone before I had a chance to respond.
This article was submitted by Joel Bauman, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
Today marks silver’s ninth consecutive week of higher nominal prices. Short coverings from yesterday’s rally is the reason behind silver’s higher price today. Commodity traders have been looking at the chart below and deeming silver as overbought. This is seen in the large short interest for silver, meaning traders are betting against silver’s price by shorting the market. Across silver futures, ETF’s, and OTC markets, there has been an increase in short positions.
This article was submitted by Joel Bauman, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
This article is a comprehensive breakdown on SchiffGold’s most bought/sold silver products. I give my personal comments on each product and I give a brief final analysis to help buyers pinpoint the exact product that meets their goals and objectives.
Additionally, I wrote this for buyers seeking to take delivery or possession within the United States. International markets value some products differently. For clients seeking international silver holdings I recommend talking to your precious metals specialist.
This article was submitted by Joel Bauman, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
One of the wisest questions any potential buyer can ask before they purchase an asset is, “How much would I receive if I sold this asset or product today?” In other words, “What is the bid on this asset?” Answering this one question alone can save an individual from making a foolish purchase.
Wise buyers understand the fundamental dynamics of the market. They are aware there is no single price for any product or asset. Instead, there is an “ask” price and a “bid” price.
The “ask price” (aka the “offer”) is the lowest price a prospective seller is willing to accept. The bid price is less intuitive. The bid is the highest price a prospective buyer is willing to pay for a product or asset.
Dealers create a market by simultaneously acting as sellers and buyers. Dealers earn a profit via buying an asset at the bid price and selling at the ask price.
Here is an example of a dealer quoting the bid and ask price for a contract of the Dow Jones Industrial Average also called “the Dow”:
