Gold-Silver Ratio: Debunking The Myth

A 16-to-1 gold to silver ratio has been the Holy Grail of some silver investors since the mid-sixties.

Unfortunately, fifty years later, it is a quest that continues unabated without success.

In fact, there is evidence that contradicts and widens the chasm that separates wishful thinking from reality.  Continue reading “Gold-Silver Ratio: Debunking The Myth”

Gold vs. Gold Mining Shares – Just The Facts, Ma’am

“…but what I do know is the people running the company are practically married to their shareholders and investors, like you.”

That’s good to know.  After two decades of sharing their bed(s) with investors “like you” since the honeymoon period and birth of gold’s bull market in 1999/2000, the management of this particular gold mining company is still committed.  And, presumably, other companies’ managements are similarly committed. Are you?  Continue reading “Gold vs. Gold Mining Shares – Just The Facts, Ma’am”

$10,000 Gold May Be Reasonable; Or Wishful Thinking; Or Meaningless

Is $10,000 gold reasonable?

Right now, from gold’s current price point of $1240.00 per ounce, we are speaking of an eight fold increase to get to that gloriously celebrated (at least by some) number.  Even if the specific price target is more modest – say $7000.00 per ounce – it is still a huge jump from where we are today.  Continue reading “$10,000 Gold May Be Reasonable; Or Wishful Thinking; Or Meaningless”

How Much Is Gold Really Worth?

How much is gold really worth?  The answer we get depends on who we ask and what their opinion is.

Everyone has an opinion as to what something is worth, whether the object of consideration is their home, a late grandfather’s pocket watch, or a specific stock.  In that respect, gold is no different.  Continue reading “How Much Is Gold Really Worth?”

Gold And Unrealistic Expectations

Gold has been characterized as insurance, a hedge against inflation/social unrest/instability, or, more simply, just a commodity.  But it is treated most of the time, by most people, as an investment.  

This is true even by those who are more negative in their attitude towards gold. “Stocks are a better investment.”  In most cases, the logic used and the performance results justify the statement. But the premise is wrong. Continue reading “Gold And Unrealistic Expectations”

Mansa Musa, Gold, And Inflation

From Wikipedia…

 Musa Keita I (c. 1280 – c. 1337) was the tenth Mansa, which translates as           “sultan” (king) or “emperor”, of the wealthy West African Mali Empire. 

During his reign Mali may have been the largest producer of gold in the world at a point of exceptional demand. One of the richest people in history, he is known to have been enormously wealthy; reported as being inconceivably rich by contemporaries, “There’s really no way to put an accurate number on his wealth” (Davidson 2015).  Continue reading “Mansa Musa, Gold, And Inflation”

Gold – It’s Still All About The US Dollar Part II

In my original article I made the following statements:

“It means that holders of any non-USD currency who want to exchange it for gold, must first exchange it for US dollars and then exchange the US dollars for gold.

When anyone is selling gold, the proceeds are always paid in US dollars. The dollars can be held as such, or they can be exchanged for other currency.”  

Another professional labeled the above statements as “fiction”.

I do not agree.  But I do see the possibility for others to infer something other than what was intended.  Therefore, I apologize. And I have replaced the statements in question with the following: Continue reading “Gold – It’s Still All About The US Dollar Part II”

Gold – It’s Still All About The US Dollar

The US dollar is the world’s reserve currency.  And that isn’t likely to change in any radical way, anytime soon.  Unless there is some kind of calamitous implosion of the dollar.  I am talking about outright rejection and repudiation.  And that could happen.  The problem is that there isn’t another currency that could likely take its place.   Continue reading “Gold – It’s Still All About The US Dollar”

Analysis Of Gold Is Much Ado About Nothing

Any analysis of gold must have a correct premise.  And terms used in that analysis must be clearly understood.  For example…

“Are you pro-gold?”  Just exactly what does that mean?   Is it a political or moral issue?  In other words, does someone’s position on gold indicate ideology or lifestyle choice?  Can a political liberal be pro-gold? And if someone answers the original question in the affirmative, does that mean they are anti-something else?

Continue reading “Analysis Of Gold Is Much Ado About Nothing”

Gold And Interest Rates – A Mass Of Confusion

Over the past several months there have been numerous articles referencing a relationship between gold and interest rates. Most of them are well-meaning attempts to convey information about recent changes in the markets as interest rates head higher.

In several instances, however, the author(s) have tried to explain a ‘perceived’ correlation between rising interest rates and the value of the US dollar – in a very positive manner. And they have imputed a similar correlation – albeit negative – in other statements with respect to Gold.  In both cases they are incorrect.   Continue reading “Gold And Interest Rates – A Mass Of Confusion”