Gold at record price today

The equilibrium of where the silver to gold ratio should be is 1:35 , that is the general number if you factor in silver and gold supply

Now that’s so,e thing I read not personally researched so I’m happy if someone can comfirm or reject it and provide sources

Always happy to be educated !

I found this site interesting.

Firstly yes some basics here. But Government used to set the Ratio Also Roman times 12:1
[url=https://www.investopedia.com/articles/investing/080316/historical-guide-goldsilver-ratio.asp]https://www.investopedia.com/articles/investing/080316/historical-guide-goldsilver-ratio.asp[/url]

Had to sell some gold this week, couldn't resist at over $2000 spot, made a nice 228.81% on my original purchase price.

Think I'll sell my silver if it ever gets close to £30 an ounce (Yeah, I know it's a long shot) and then buy gold with the proceeds.

21C Bullion wrote:Had to sell some gold this week, couldn't resist at over $2000 spot, made a nice 228.81% on my original purchase price.

Think I'll sell my silver if it ever gets close to £30 an ounce (Yeah, I know it's a long shot) and then buy gold with the proceeds.

I think you made a smart choice. I still think it will go up further with the worlds situation at hand.

That being said Silver was over £35 per oz not too long ago... thats well over $40

I mean a couple of years now... but yeah... wait for that $30+ before selling silver. The choice of Kings. ( sorry historical joke )

Admin wrote:I think you made a smart choice. I still think it will go up further with the worlds situation at hand.

No doubt, the chart doesn't lie:

https://www.bullionbypost.co.uk/gold-price/gold-price-history/

Lovely climb since 1970s (When the US dollar left the gold standard)

Prices fluctuate but the general direction is clear to see.

It’s arguable that gold and silver simply reflect the inflation of the dollar; that the rise in gold prices is due to the rise in dollar inflation.

That would be an interesting chart to examine , as I don’t think all the Covid inflation has been baked into the gold price yet.

I have one word Brics

How many countries are joining the Brics? Could the USD collapse?

Please anyone thinking ahead of time that I down on the USD it is not true. I am American but living here in the UK for over a quarter of a centenary

Admin wrote:I have one word Brics

How many countries are joining the Brics?   Could the USD collapse?

Please anyone thinking ahead of time that I down on the USD it is not true. I am American but living here in the UK for over a quarter of a centenary

I personally don't think the US Dollar will collapse or go away but it will change in it's nature as more and more countries turn their back on it. It will be similar to the difference in the British Pound at the height of it's power and where it is today and what we in the UK went through the US citizens will have to endure but on a much larger scale, this is bad news for Americans and us by extension because there are trillions of Dollars in existence and they will all come flooding back to the US and the inflation is going to go through the roof.

I can't blame countries for taking their opportunity to break away from dollar hegemony, they are swapping their goods and services for worthless paper or digital ledger entries knowing that the US debt levels have grown so massive that they cannot possibly honour any of it. During the 2008 financial crisis the Chinese and various other countries must have thought all those US treasuries they were holding were all going to be rendered worthless at a stroke.

There is also the matter of stopping the forever wars, since the US decoupled the Dollar from gold there is not the same consideration given to starting wars, previously a nation had to think long and hard before engaging in a serious war as it could wipe them out financially but taking away the gold backing requirement means you can just keep printing and keep perpetual war going so again countries have seen their opportunity to put a stop to this by joining the BRICS as Russia and China are too big to stiffen, even the Saudis wanting to join shows how all confidence in the US has gone.
There is also the possibility that the sanctioned world is heading to becoming larger than the unsanctioned world because the US have pushed weaponising the Dollar to keep other nations in line too far and again countries see their opportunity to combat this.

The inflation the US citizen will have to eat as this plays out will be massive and their standard of living will decrease massively, the FED is trapped no matter what they do as well. Last bad inflationary cycle they had to raise rates to 18% to combat this and it still took 2 years to have any effect. Today they raise rates to 5% and it starts to break the financial system and if they pivot it's just back to pumping more Dollars into existance that nobody really wants any more.

Rod, what a fantastic article you wrote here.

I would add that the West, EU, Japan, USA, will have to stop manipulating the World currencies like they have been doing for over a century, to keep the 3rd world in false poverty.

The Rest of the World will do a lot better. No need for IMF etc, as they are also there only to keep the 3rd World in forever debt.

The WEST is already becoming/is the 3rd World as our elites only have the final robbery to do, from their own citizens.
It's such a fu---ng joke really. We are on the wrong side this time. No Russia available to lose 20 million of their people to allow us to win the 2nd World War.

Russia is in Europe, I learned that in Geography in 1959. As the USA would say on their silver coins, IN GOD WE TRUST.

I don’t think the dollar will collapse because of BRICs; but I do think it will have competition and eventually lose its place as the worlds No.1 currency due to the increasing debt.

There is still a long way to go before that happens, Chinese Yuan is still a smaller player compared to the dollar and the euro, in many ways it’s decades away with its current rate of growth in terms of world trade.

It’s also a balancing act, for China to run a surplus it needs someone else to run a deficit and this is why the USA debt can be argued in one aspect to be normal economic law.

However I think the biggest risk to the dollar is the USA itself. Refusal to tackle the debt crisis, government spending more than it recovers in tax income, an increasing public debt will all lead to one inevitable outcome.

Silver up a Quid in the last two hours, gold up £50.

A dollar like a pound, euro, yen, etc is a promise of payment based on confidence of the country to honour the payment.
It’s no longer based on the gold or silver standard.
Russia and China buying up huge gold reserves can and will start to claim their currency is based on gold, aka if you traded in ex amount of ruble at the Russian national bank it can be exchange for the equivalent gold in the reserve.

This is the medium to long term play of Russia and China.

It will be interesting how it all plays out.

SanMarino wrote:I don’t think the dollar will collapse because of BRICs; but I do think it will have competition and eventually lose its place as the worlds No.1 currency due to the increasing debt.

There is still a long way to go before that happens, Chinese Yuan is still a smaller player compared to the dollar and the euro, in many ways it’s decades away with its current rate of growth in terms of world trade.

It’s also a balancing act, for China to run a surplus it needs someone else to run a deficit and this is why the USA debt can be argued in one aspect to be normal economic law.

However I think the biggest risk to the dollar is the USA itself. Refusal to tackle the debt crisis, government spending more than it recovers in tax income, an increasing public debt will all lead to one inevitable outcome.

I totally agree with your comments. Patrick Boyle succinctly explains everything in his recent video, "Would a BRICS Common Currency Work?"