AU and AG price v the Aussie

Discussion in 'General Precious Metals Discussion' started by Lovey80, Dec 29, 2019.

  1. Lovey80

    Lovey80 Well-Known Member

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    For those looking to get into, or further into precious metals at a nice AUD price point. What conditions do you think we should be looking for to see the AUD price of Silver and Gold at really low levels. Quite often drops in precious metal prices coincide with drops in the value of the AUD meaning that over the past 5 years has been in a range between $20-27 for silver. With only limited dips below $20.

    What economic conditions do you think we’d need to see silver below $15AUD?

    1. Growth figures world wide in positive territory?
    2. Aussie and other major markets with low unemployment?
    3. Aussie interests rates back above say 7%?

    what sort of factors do you think we’d need to see before we’d see silver back below $15?
     
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  2. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    @Lovey80 , interesting homework task. :)
     
  3. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I’ve been looking at the silver price in USD for any correlation with global liquidity and with global inflation. Not much to help.

    The biggest drop in the last 20 years was in 2009 which coincided with Obama’s stimulus packages. So maybe fiscal stimulus is a precursor to falling silver prices?

    Probably worthwhile investigating the following years, 1983, 1987, 1998 and half way through 2016. I’d start with 2016.
     
  4. sctpc

    sctpc Active Member

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    Well you also need to take into account the Gold Silver ratio in Australia including dealer markup its NOT 86ish I find it sits about 73, why Silver is about $5 per oz and Golds about $30 that`s not equal. So bang for buck Golds the better buy as sell is normally Spot, unless private.
    Yes the AUD has some play as 1c is quite a bit when your talking $2270 a oz but I still feel the markups can void savings very easy look at before Christmas silver dropped under 25 but sat over $30 at the dealers yet Gold dropped $2150 and was the same $30 markup.
    Ive never asked why but would think golds less easy to sell and silver would pay the bills but thats a guess.
     
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