David Erfle - Gold Market Commentary – Tue 14 May, 2019

Gold/Silver ratio approaching 90 – It’s only happened 1 other time

David Erfle, Founder of The Junior Miner Junky joins me for a look at the gold and silver ratio which is now approaching 90. This ratio has only reached this level once before and when it did there was a big swing back to bullish for the PMs. We also discuss a short term outlook for gold and GDX as well as comment on silver still not getting a bid.

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Comments:
  1. On May 14, 2019 at 11:27 am,
    cfs says:

    Given the Gold and Silver prices are set in the derivatives market, not the physical market, why should anyone believe their prices should have any correlation to supply and demand? Or, indeed, any rational basis in fact or history.
    Thus why should the Gold/Silver ratio have any meaningful value?
    What does the gold/silver ratio really measure.
    (Obviously the price of Gold oz in silver oz…….but that’s a childish definition.)
    It is the measure of the ratio of paper speculations in one commodity relative to paper speculations in another commodity; those speculations, which are manipulated and mostly without enforced rules, because the CFTC chooses not to enforce it’s rules.

    The ratio ONLY HAS MEANING because speculators use Technical Analysis to place their bets, even though the ratio is primarily a GAMBLERS RATIO; little more meaningful than that.

  2. On May 14, 2019 at 12:10 pm,
    Ebolan says:

    Hah! Boys, who needs gold?

    After all, if you’re not a billionaire in 10 years it’s your own fault…just listen to the 20 year olds!

    https://www.marketwatch.com/story/if-youre-not-a-billionaire-in-10-years-its-your-own-fault-says-20-year-old-bitcoin-tycoon-2019-05-14?mod=mw_theo_homepage

    • On May 14, 2019 at 12:18 pm,
      OOTB Jerry says:

      Now we are going to start hearing from the crypto crowd…..how smart they are…..lol

  3. On May 14, 2019 at 12:32 pm,
    JMiller says:

    It seems to me that the gold and silver ratio, which is now approaching 90, has reached this level not just once before but twice before.

    https://sdbullion.com/media/wysiwyg/Blog/100_year_gold_silver_ratio_Gold_Silver_Ratio_Gold_Silver_2019_Major_Macro_Trends_Christopher_Aaron_iGold_Advisor.png

    • On May 14, 2019 at 12:37 pm,
      OOTB Jerry says:

      Nice chart…..

    • On May 14, 2019 at 12:55 pm,
      JMiller says:

      Also here is a chart showing the gold to silver ratio during the Wiemar Republic’s Hyper-inflationary period where it reached 160.

      https://static.seekingalpha.com/uploads/2009/3/4/saupload_rw.jpg

      • On May 14, 2019 at 1:40 pm,
        cfs says:

        Interesting chart of Gold/Silver ratio, but it conflicts with EVERY CHART I have seen covering that period between WW1 and WWII

        e.g.
        https://www.macrotrends.net/1441/gold-to-silver-ratio

        Does the seeking alpha author give a source for the incorrect chart?

        • On May 14, 2019 at 1:48 pm,
          cfs says:

          P.S.
          The reason I used my citation above is that particular contains a lot of ratio charts….gold, stock market, Silver, etc. I repeat here again for convenience.
          https://www.macrotrends.net/1441/gold-to-silver-ratio

          • On May 14, 2019 at 6:10 pm,
            JMiller says:

            cfs,

            The gold to silver ratio hit 160 as the data below shows during the Wiemar Republic. It was priced in Deutsche Marks. Sorry I did not state that in my post above so there would be no confusion.

            http://www.lemetropolecafe.com/img2010/Midas/Midas0719C.jpg

        • On May 14, 2019 at 2:26 pm,
          OOTB Jerry says:

          Professor…….check the fine print at the very bottom of the chart…..on sdbullion chart……for your question.
          What does your charts say , should be the ratios for the TWO EVENTS…..

          • On May 14, 2019 at 7:10 pm,
            cfs says:

            It was probably Reichmarks, but I assume it was an in-Deutschland GSR only, which also affected the external GSR.

            Demonstrating Gold is more highly portable than silver.

        • On May 14, 2019 at 2:57 pm,
          Matthew says:

          You’re assuming there’s just one GSR for the entire world. I don’t doubt that it hit 160 within the Weimar Republic during its hyperinflation.

          • On May 14, 2019 at 5:45 pm,
            JMiller says:

            You are correct Matthew. Here is an article that show how much more gold increased compared to silver at the very end of the Wiemar Republic hyper-inflationary period.

            http://www.mining.com/how-silver-surged-during-german-hyperinflation-in-the-1920s-91871/

          • On May 14, 2019 at 5:47 pm,
            JMiller says:

            (Continued from my post above)

            For most of that period the gold to silver ratio remained steady until the week of October 23, 1923 when gold skyrocketed while silver hardly went up as seen in the data below.

            http://www.lemetropolecafe.com/img2010/Midas/Midas0719C.jpg

          • On May 14, 2019 at 8:10 pm,
            Matthew says:

            No one likes silver more than I do but gold is the ultimate money and safe haven. Hyperinflations have little in common with periods of high inflation which is why silver does poorly relative to gold in the former but superbly in the latter.

          • On May 15, 2019 at 4:29 am,
            OOTB Jerry says:

            Again…………Nice chart on the lemetropolecafe Midas …….ratio….gold looking good…

  4. On May 14, 2019 at 1:33 pm,
    cfs says:

    Premier Gold drills 30.4 m of 6.43 g/t Au at Mercedes

    2019-05-14 06:20 ET – News Release

    Mr. Ewan Downie reports

    SUCCESSFUL DELINEATION AT MERCEDES MINE

    Premier Gold Mines Ltd. has released multiple new and high-grade intercepts from the expansion and delineation program active at the company’s 100-per-cent-owned Mercedes mine, located in the state of Sonora, Mexico.

  5. On May 14, 2019 at 3:05 pm,
    George says:

    The oil sabotage is the real catalyst for gold

  6. On May 14, 2019 at 5:25 pm,
    Excelsior says:

    Here’s another nice buyout in the Gold sector, and as predicted, it is the Aussie miners that are cashed up due to their helpful currency exchange rates, so I’m hoping this is the first of more Australian takeovers in North America.

    This takeover of Atlantic Gold is an all cash offer – Nice!

    __________________________________________________________

    St Barbara to Acquire Atlantic in Friendly Offer for C$802 Million

    by @newswire on 14 May 2019

    https://ceo.ca/@newswire/st-barbara-to-acquire-atlantic-in-friendly-offer-for

  7. On May 14, 2019 at 5:42 pm,
    Excelsior says:

    (JAG) (JAGGF) Jaguar Mining Reports Continued Wide, High-Grade Intersections at Turmalina Orebody C Central Including 11.20g/t Au over 9.64m; Company Announces New Corrego Brandão Exploration Target Near CCA Plant with Shallow Auger Drilling High-Grade Intercepts Including 38.71gt Au over 5.80m

    by @newswire on 14 May 2019

    https://www.jaguarmining.com/en/investors/news-releases/2019/jaguar-mining-reports-continued-wide-high-grade-intersections-at-turmalina-orebody-c-central-including-11.20g-t-au-over-9.64m/

    • On May 15, 2019 at 5:49 am,
      Excelsior says:

      (MXSG) Mexus Pays Off Debt and Updates Its Shareholders On Progress at the Santa Elena Mine

      by @nasdaq on 13 May 2019

      May 13, 2019 (GLOBE NEWSWIRE)

      “Mexus Gold US (OTCQB: MXSG) announced that on May 9th it paid off a note payable of $111,563 which was due on May 14th. In addition, the company announced that it is currently looking to hire two chemists and a geologist to assist Mexus associate Cesar Lemas at the Santa Elena mine. Mexus believes it has found a lead chemist and hopes to complete the hiring process this week. The additional staff is needed as the amount of assaying and general mine work is increasing weekly.”

      “Mexus expects the blast hole drilling occurring on the Julio vein to be completed by May 17th with the permitted blasting company to arrive shortly thereafter. President and CEO of Mexus, Paul Thompson, added, “We are taking a cautious approach to the heap leach pad and leaching process to ensure that all the right pieces are in place prior to commencing leaching. The chemists will play an integral role in the recovery of gold so finding the right people is extremely important. We are being diligent in our efforts to avoid the mistakes the prior operator made.”

      https://ceo.ca/@nasdaq/mexus-pays-off-debt-and-updates-its-shareholders-on

  8. On May 14, 2019 at 7:19 pm,
    Markedtofuture says:

    SerialBrain2: Mueller-Rosenstein-Comey: The Infernal Trio.

    https://www.youtube.com/watch?v=NDfIEGPMbcw

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