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Global Currency Reset, Amero, The Gold Silver Ratio and $150 Silver

GoldCore's picture




 

Today’s AM fix was USD 1,226.50, EUR 902.50 and GBP 747.37 per ounce.
Yesterday’s AM fix was USD 1,237.50, EUR 907.92 and GBP 754.44 per ounce.

Gold fell $6.50 or 0.52% Yesterday, closing at $1,232.30/oz. Silver slipped $0.30 or 1.49% closing at $19.87/oz. Platinum dropped $3.01, or 0.2%, to $1,409.74/oz and palladium rose $3 or 0.4%, to $738.25/oz.


Gold Silver Ratio - 1960-Today

Gold edged down in London for the second day ahead of the release of the U.S. Federal Open Market Committee minutes. Strong support is at $1,180/oz which could turn into a double bottom and resistance is at $1,250/oz and $1,270/oz.

FXStreet.com's Dale Pinkert interviewed Mark O'Byrne, GoldCore's Research Director on Monday about the current state of the gold and silver markets, the history of paper currencies, a global currency reset, the amero currency, the gold silver ratio and silver rising to $150/oz in the coming years., Mark O'Byrne on Monday about the current state of the gold and silver markets, the history of paper currencies, a global currency reset, the amero currency, the gold silver ratio and silver rising to $150/oz in the coming years.

Another topic looked at was bail-ins by banks of individual creditors becoming one of the most under appreciated risks of our time and noting Poland's recent government confiscation of pensions.


Silver in U.S. Dollars, 5 Year- (Bloomberg)

They discuss how the gold silver ratio throughout history has been 15:1. Today it is at over 60:1 (see chart) and GoldCore believe it will revert to the mean.

There are a number of reasons that silver should revert to the long term historical mean but the two primary ones are the fact that geologically in the earth’s crust  there are fifteen parts of silver to every one part of gold.

The other reason is that silver is used in many industrial, technological, medical applications today and since the Industrial Revolution a huge amount of silver has been used up.


Silver in U.S. Dollars, from 1970 - (Bloomberg)

It is for this reason that we are more bullish on silver than on gold in terms of price. We continue to believe that silver will surpass its inflation adjusted high of $150/oz in the coming years.

It was noted how  international storage of coins and bars is becoming a popular diversification for U.S. citizens in Zurich, Singapore and Hong Kong.

Dale asked some good questions and had a great expression that we had not heard before “Don’t wait to buy gold and silver. Buy gold and silver and wait.”

The video interview (30 minutes) can be watched here

 

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Wed, 01/08/2014 - 15:10 | 4312427 moneybots
moneybots's picture

"the amero currency"

 

Isn't what is happening to the Euro countries enough of a hint not to create the amero?

Wed, 01/08/2014 - 15:32 | 4312520 Volaille de Bresse
Volaille de Bresse's picture

That's fucking hilarious because on OUR side of the Ocean we think "why link our destiny to a dry fruit like the US. They want a partnership to save their bankrupt asses and gain abit of power when China comes to get them..."

 

And we ain't no fucking Mexico : we ain't gonna be bled white with some fucking trade agreement! Save your country with your blood and your sweat (and your gold huh huh) not Europe's!

Wed, 01/08/2014 - 18:58 | 4313253 Tall Tom
Tall Tom's picture

No. But you link your destiny to that of Portugal, Italy, Ireland, Greece and Spain over in Europe.

 

The lessons learned from the Euro Experiment is more than enough information to suggest that an AMERO Currency will be subject to the same FAILURE.

 

As for Europe "protecting" the USA from the Chinese? LMAO. We will either handle it or be vanquished.

 

Of course you can also bet as Europe disintegrates from the oncoming collapse, as Russia invades, the USA will NOT STOP the Bolshevik Hordes. (We will be too busy with the Chinese...) It just gets mighty cold in European Homes...without Russian Natural Gas.

 

Enjoy your deep freeze and FAMINE.

Wed, 01/08/2014 - 15:03 | 4312381 SgtShaftoe
SgtShaftoe's picture

I think it's a paraphrase of a Jesse Livermore quote:

"Be right and sit tight".

Wed, 01/08/2014 - 14:35 | 4312251 Dr. Bonzo
Dr. Bonzo's picture

Good update thx for posting!

Wed, 01/08/2014 - 14:33 | 4312240 MeelionDollerBogus
MeelionDollerBogus's picture

GOLD SILVER RATIO is impossibly unimportant.

It has no meaning.

what has meaning is the correlation of the prices.
ln(silver) = gold x 3/2635 + 1297/810 on trend for over a year.
Today that 1297/810 could be replaced with 52/33 but one day is not a trend.
http://flic.kr/p/f5bHkJ : This is what has meaning.
Never the ratio of gold vs silver. One moves exponential to the other so a linear ratio is always wrong & incredibly misleading to chart.

Wed, 01/08/2014 - 15:02 | 4312376 Greenskeeper_Carl
Greenskeeper_Carl's picture

I don't care about the chart, but I don't discount the ratio. It tells me that for silver is a better buy at these levels than gold. I like and own both, but for someone who just buys a little each month to hold long term, I feel that leaning more heavily to silver is the thing to do right now with the ratio near historic disproportions.

Thu, 01/09/2014 - 04:44 | 4314630 MeelionDollerBogus
MeelionDollerBogus's picture

HOW does it tell you this? There's a reason silver trades at an exponential price scale to gold in all currencies.

If you're just carrying it as money then gold is the compressed purchasing power you can run with. If you're doing industrial catalyst chemistry for now silver would be better but keep an eye out for nano-porous gold. It's happening and it's better.

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