GSR is getting closer to 70

bubblebobble2 said:
will we see this to go under 70???
thanks anslie bullion for this article...
ainsliebullion.com.au

Gold Silver Ratio – CoinSpot Bundle Launch | Ainslie Bullion

The Gold Silver Ratio is one of the key metrics studied by precious metals investors, and for good reason. This ratio of the gold price to the s
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Good article, I'll have to read it properly when I've got time.

First thoughts though I reckon the 300 year average is meaningless, I like how the first chart only goes back to 1971 and if we take the outliers out IE the massive peaks and troughs what's the median GSR!
 
Its got a long way to go to get to the historical average of 12 or 16:1.

I wouldnt even count the last 50 years of manipulation in those figures.
 
Long ago there wasn't a lot of industrial uses for silver, and 60 years ago they were removing it from circulating currency, so for the last 60 years there would have been ample stockpiles of old currency silver for the current industrial use. But I reckon they might be running out of this old silver and probably having to rely more on newly mined silver. I have no hard data, so this is just a theory of mine.
 
At the site I'm on, Grasberg in the mountains of Papua Indonesia, they mine copper with significant Gold/Silver/PGM inclusions. Reading through their Geological Reports recently and across the 4 different orebodies they are mining inside the mountain, the GSR is between 3 and 5 :oops:
They are producing ~1.3-1.5Moz of gold per year so not "trace" amounts ;)
 
GoldenEye said:
Long ago there wasn't a lot of industrial uses for silver, and 60 years ago they were removing it from circulating currency, so for the last 60 years there would have been ample stockpiles of old currency silver for the current industrial use. But I reckon they might be running out of this old silver and probably having to rely more on newly mined silver. I have no hard data, so this is just a theory of mine.
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In my lifetime as an antique collector i have seen a few times where the price of antique sterling silver ( regardless of how ornate and rare) was being scrapped as it was worth more melted. The late 1980s and late 2000s are two that come to mind. This was driven by the poor resale value of antique silver and not high prices of silver per ounce..
I remember being in Kozminzkys (high end antique jeweller) in melbourne in the late 80s and a guy was buying every bit of antique silver they had and crunching it up so it could fit in a trolly. I was gobsmacked. Interest rates were 18% and no one was spending on unnecessary items.
We are getting to that tipping point again, right now there is still plenty of money about so antique silver is holding its own but any downturn will see the shelves emptied for melting.
 
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Sad for those silver antiques being melted. I know millions of silver dollars and old silver coins were melted a few different times too.
Makes me sick to my stomache!
 
GoldenEye said:
Long ago there wasn't a lot of industrial uses for silver, and 60 years ago they were removing it from circulating currency, so for the last 60 years there would have been ample stockpiles of old currency silver for the current industrial use. But I reckon they might be running out of this old silver and probably having to rely more on newly mined silver. I have no hard data, so this is just a theory of mine.
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Long ago you couldn't get 90% of it as a byproduct/secondary product from mining other metals. Long ago you couldn't recycle *all* of it (well that doesn't really count, because there was no recycling). There is something unsettling about it's current price, and no - I don't care about 'historical' averages from 500 years ago... I mean picking data points is fun and all but silver has exceed 80:1 dozens of times, aaaaaaand dropped way back again. Each and every time.
 
adze67 said:
At the site I'm on, Grasberg in the mountains of Papua Indonesia, they mine copper with significant Gold/Silver/PGM inclusions. Reading through their Geological Reports recently and across the 4 different orebodies they are mining inside the mountain, the GSR is between 3 and 5 :oops:
They are producing ~1.3-1.5Moz of gold per year so not "trace" amounts ;)
Click to expand...

That's only related to production, not price - but here's the thing minerals are not static. You can have a gold mine with zero silver, you can have a silver mine with zero gold; you can have a copper mine that can extract silver. You can have multiple mines and come up with an average conclusion. There are hundreds of thousands of mines. (I'm currently in Telfer Western Australia, 12.9 TONNES of gold, 17,200 Tonnes of Copper, 4.9 Tonnes of silver extracted from the copper and other ores). Does that make silver 2.5:1?

Hint (it's not a silver mine - the silver is just a bonus)
 
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