Gold & Silver

Crazy predictions for much higher silver prices are unwarranted and unsupported by historical performance...and some silver investors and analysts could use a dose of reality [and that is provided in this article.]

Virtually all the gold in the world that has been mined is still around in one form or another and the following infographic visualizes all the gold in the world that’s above ground and the identified reserves that we have yet to mine.

If you want to know and understand what is happening to gold’s price, then you need to know and understand what is happening to the U.S. dollar. The value of gold is constant: its price changes according to changes in actual purchasing power of the US dollar. 

If one accepts the premise that there will be an accounting between the price of gold and silver and the amount of excess currency creation, then we can expect at least what we saw in the 1970s. It could truly be breathtaking.

The Tokyo gold medals are composed of 92.5% silver with approximately 6g of pure gold making up the plating on the outside and are valued at $820.

Our argument is not that gold makes a bad investment or that no one should own gold but, rather, that gold does not work well as inflation protection but, rather, that the price of gold moves based on investor sentiment

The US dollar, as the world reserve currency, is still the driver of silver, gold, and inflation pricing and the charts below show that they should now be ready to run based on the USD topping and then dropping in "price".

After reading recent articles by others and listening to what continues to pass as ‘fundamentals for gold’, I think it might be helpful to restate, and elaborate on, two specific things which gold is not: (1) Gold is not an investment and (2) Gold is not a hedge against inflation.

Gold investors are right to wonder what effect, if any, Basel III will have on the gold price. Our take is that...

It’s time for our annual silver quiz! See how many you can get correct (answers at the end), and more importantly, consider what the data suggests may be ahead for the silver price over the next few years…I will start easy, but let’s see if I can stump a few silver bugs by the end.