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.
The spread of coronavirus in China has made markets jittery. Stocks have gone into a slide and gold has pushed up on safe-haven buying. Last week, Peter Schiff appeared on RT Boom Bust to talk about it. He said that 2020 may well be a bad year for the stock market, but probably not because of the virus. The real problem is markets are overvalued and the air will eventually come out of the bubble.
Silver tends to get lost gold’s spotlight but there are reasons to consider adding silver to your portfolio as well. The silver-gold ratio remains at historically high levels. Practically speaking, this means silver is on sale. The supply and demand dynamics also look good for the white metal. Demand is up and global mine output fell last year.
There have been financial commentators, pundits, and asset managers who have stated that during periods of stagflation — low real GDP growth and high inflation — silver has underperformed gold. But as Dan Kurtz of DK Analytics shows, that conventional wisdom doesn’t hold up to scrutiny.
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).
While impeachment proceedings kicked off at home President Trump was in Davos, Switzerland, talking up the US economy. He called it the best economy in American history. Is it though? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the economy, what’s really driving it, and why this might be a good time to think about gold.
Rick Rule talked with David Lin of Kitco News at the Vancouver Resource Investment Conference. Rule is the senior managing director at Sprott Inc., and he’s bullish on gold. During this discussion, Rule explains why, touching on a range of subjects including the Federal Reserve, the trade war, the US dollar, the bond market and more.
To kick off the interview, Lin points out that gold has been rather range-bound since the price spiked in the wake of tensions in the Middle East. Rule said this is a sign of a healthy gold bull market.
Donald Trump and Chinese Vice Premier Liu inked their signatures on the Phase 1 trade deal this week. But was it really a big deal? Or was it no deal? Mike Maharrey talks about it on this week’s Friday Gold Wrap podcast. He also talks about why the gold market seems to be holding steady despite some strong headwinds and the outlook for the yellow metal in 2020.
Gold had a strong year in 2019 and a World Gold Council report says the outlook for 2020 remains bullish.
We expect that many of the global dynamics seeded over the past few years will remain generally supportive for gold in 2020.”
Gold charted its best year since 2010 last year. The price increased by 18.4% in dollar terms. The yellow metal also reached record highs in every G10 currency except the dollar and the Swiss franc. There were record inflows of metal into gold-backed ETFs and central banks continued to gobble up gold.
In his latest podcast, Peter talks about sudden silencing of the war drums, the risk that remains in the markets, the stealth bull market in gold, the risk of a socialist president, rampant economic illiteracy, inflation and more.
As Peter put it – what a difference 48 hours makes.
We have a trade deal! Maybe. Meanwhile, the Fed wrapped up its last FOMC meeting of the year this week and did nothing. But Powell and Company did give us some indication about what we should expect next year. The week’s news played tug-o-war with gold. In this episode of the Friday Gold Wrap, host Mike Maharrey breaks it all down and says there’s a lot to be skeptical about, both with the trade deal and the rhetoric coming out of the Fed.
