What should the actual worth of both gold and silver be current USD

S

Sonic

New Member
I was lied to by the 'bullies' about how much silver exists above ground. They painted an impressive picture using words like "industrial applications" but in the end just straight up lied by claiming there is more gold above ground than silver.

Gold above ground (2012): 170,000 tons

Silver above ground (2012): 748,000 tons

If what I've googled is accurate. Whether you think silver sill skyrocket or not, what do you think current silver AND gold prices should really be worth right now? Is either under or overvalued?
 
Sonic said:
...., what do you think current silver AND gold prices should really be worth right now? Is either under or overvalued?
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I reckon the market is always right, and that spot is spot-on.
 
It is what it is right now, like anything is in any moment, but if it were suddenly $10 different from one day to the next, while the rest of the economy remains about the same as the day before, then that would suggest that on one (or both) of those days, spot was not spot on. With current inflation, is silver really undervalued as people claim? Do most people think gold is undervalued? This could also be a driving force for silver, if so.
 
Sonic said:
It is what it is right now, like anything is in any moment, but if it were suddenly $10 different from one day to the next, while the rest of the economy remains about the same as the day before, then that would suggest that on one (or both) of those days, spot was not spot on. With current inflation, is silver really undervalued as people claim? Do most people think gold is undervalued? This could also be a driving force for silver, if so.
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<----- SIDEWAYS ----------->
 
I think gold prices are what they are. I think silver prices should be a little more in ratio based with thier above ground content to gold. 72 to 1 seems a little ridiculous if they are above ground at 6 to 1. How much is estimted below ground for gold and silver?
 
Sonic said:
It is what it is right now, like anything is in any moment, but if it were suddenly $10 different from one day to the next, while the rest of the economy remains about the same as the day before, then that would suggest that on one (or both) of those days, spot was not spot on. With current inflation, is silver really undervalued as people claim? Do most people think gold is undervalued? This could also be a driving force for silver, if so.
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The $10 price change is hypothetical, but I will entertain it anyway - if this were really to happen then it would be based on some serious news or event, in which case silver would be re-valued to it's correct market price. So I would argue that in light of market knowledge, it would not suggest a mis-valuation from one day to the next, but merely a re-evaluation to reflect current news.
Regarding inflation - I don't believe it is an argument for under-valuation today. Everyone is aware of inflationary price-creep, so it could be argued that everything is undervalued compared to the future effects of inflation. This does not mean everything is undervalued at today's price.
 
I think that the price of both is due to drop significantly. :( this does not make me happy but the graphs still appear high compared to the trends of the last 20 years. I think the question we should ask is "what is keeping gold and silver this high?" Instead of claiming market manipulation is keeping it low...
 
More consolidation (lower spot prices) over the next several months. Of course, it goes without say that there will be the normal volatility in the price but the trend will be a consolidating one I believe.




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I certainly hope so. The prices are still dropping right now. I wonder what event kicked this off?
 
Miksture said:
I certainly hope so. The prices are still dropping right now. I wonder what event kicked this off?
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It's normal market movement based on investor sentiment (mostly). The spot price never stays perfectly flat, it will go down or up in every ensuing moment. The fact that it went down in that moment and the following one and the one after that was a 50/50 probability more or less. What exactly is the sentiment based on is a much more complicated answer.

As for short and long term trends, these are also sentiment driven and in hindsight sometimes we can determine with accuracy what has led to those trends.




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It's difficult to get simple answers around here lol. Basically the question stems from what I've read (bullish articles) that claim the value of gold has not, unlike what most claim, held its value throughout the ages and that it should actually be worth far more than it currently is. I just wanted I see if people agree with that or not. And if so, what dollar amount would be closer to the "justified" price. It's all hypothetical.
 
Peter said:
Things are worth what people are willing to pay for them.
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Simple but sage advice. However the reverse isn't true in that things are not worth what people are willing to sell them for.

Therefore are you buying to stack or invest? The Stackeratti will have a field day at these prices, plus benefit financially if they sell long. I think only investors wanting to flip quickly are hurting at the moment.

I'm expecting a windfall in the next week so will go all in.
 
Sonic said:
It's difficult to get simple answers around here lol. Basically the question stems from what I've read (bullish articles) that claim the value of gold has not, unlike what most claim, held its value throughout the ages and that it should actually be worth far more than it currently is. I just wanted I see if people agree with that or not. And if so, what dollar amount would be closer to the "justified" price. It's all hypothetical.
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The simplest, most accurate answer is right in front of us, and that is the spot price.

The bullish articles are mostly bullshit and they've been at it for years. Some are honest in that they genuinely try to forcast future prices based on economic factors and trends, but others have no logic at all beyond claims of conspiracy theories.

In general it has been the banks that have more accurately forcast the direction of prices, but too often people will claim they are trying to fool us.

The infographic below is from January. Full size here: http://www.thefinancialist.com/gold-at-1000/

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I can only hope gold (and silver) continue to drop. I'd like to buy a few ounces of gold but simply can't do it right now. If I start saving AND the price drops, then we're talking.
 
When the PMs go No Sale you will find out real quick what their true values are (and plus some til the dust settles, which might be years.)
 
I saw an article the other day that quoted a speaker at a mining forum as saying that 90% of miners could produce silver at $US13 or thereabouts an ounce, so I suppose that puts a bottom in the price. Once you go below cost, you would expect restriction of supply that will support price at or above cost.
 
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