Gold, Silver, Commodities, & USD – Update

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We highlight the gold silver ratio, platinum to palladium ratio, platinum to gold ratio, and more. September 25-26 the Federal Reserve will be meeting to announce their decision regarding an interest rate hike. At this point it is looking likely that they will hike rates before the November primaries.

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Gold, Silver, Commodities, Dollar, & The DOW - Golden Rule Radio


Welcome back to Golden Rule Radio your weekly podcast where we talk about the precious metals markets and everything that affects them. Today we are still stuck in a range with gold and silver but specifically gold golds in the 3 percent range that we talked about last week between 11 70 on the bottom side and 12 10 on the top side.

So which way we break out of that range I think is going to be very important as to which direction we're going to go with the market. And then on the worst of it the dollar today we're going to highlight a couple of ratio charts. We're going to highlight the gold silver gold divided by silver ratio chart because why.

Because Robert when push comes to shove all that matters is how many ounces Are you accumulating over time. Good answer Miles. Realistically don't we all just want the pile to get bigger. Sure.

When you look at the gold silver ratio chart you're only going to see the gold silver ratio pushing up into this range where it is right now at about 84. That ratio is important where it is today because it doesn't happen very often but we'll get to that in a minute. Carly we're talking about gold golds in a range.

Yeah. Gold is definitely still stuck in that range but I don't know STUC is the right word because we're seeing a lot of movement. You know we had that three drives pattern. We got up into just below the 12 20s we had divergence. So it's not unreasonable to see it come back here we've got a fair bit 11 86 which it did bounce and has moved up from were back up in the 11 90s. And I think this is where we're starting to see that divergence between gold and some of the other metals and markets because you look at some of the white metals you look at things like copper things like corn while they're all trailing down. Gold does appear to start stair stepping up here over the last couple of weeks and that brings us back to again the thing we're going to talk to here in a few ratios.

Meanwhile silver tends to just be lagging here and McGahn get into the racial discussion it might be a good segue. But Silver to me is more of a barometer of economic viability and inflation concerns. OK so if we're looking at the technical that's one thing but looking at the macro and the fundamental it's either going to respond and track with gold or it's not going to as a result of economic or monetary concerns the monetary concerns right now as always are inflation versus deflation. So when inflation is a primary concern you tend to see silver react and climb when deflation is the primary trend then you tend to see it soften even if gold is moving counter to the currency so Robert I don't know if that leads any thoughts you're over there nodding I just wanted to say this is the best time that it's been to buy silver in the last few years and it's sitting here right pushing down right into the previous lows.

This is the best time it's been to buy in a long time.

Why is Gold Silver Ratio at  such a discount?

I think that's really what the listener wants to know. I talked to people on a daily basis I can't believe Silver hasn't turned OK and I'm telling you that the reason it hasn't is because of the deflationary moves that the Fed is taking. OK people aren't convinced that the economy is so healthy that inflation is a primary concern the Fed can come out and say they're going to raise rates because inflation is a concern and it's a mild concern. So they're taking deflationary steps and that to me Keep silver from narrowing that gap between itself and gold.

But you're saying that the policies matter is that what you're saying and so we should focus on the people who actually influence the policies.

Yeah let's be realistic here I mean the Fed's definition of deflation means just slightly less inflation.

That's right. It's under their target inflation of what two point three percent rate any time it lags behind that they're not happy any time it starts to get too far above that. Now that still means that you're losing 2 percent on your dollar every year. I had a client say today that the dollar is strong only in the dollar index relative to other currencies but that still makes it the healthiest horse at the glue factory.

Well that does segue right into our ratio discussion from earlier because you look at this divergence between gold and some of the other metals you look how the dollar's reacting to.
Welcome back to goldendoodle radio your weekly podcast where we talk about the precious metals markets and everything that affects them. Today we are still stuck in a range with gold silver ratio but specifically gold is in the 3 percent range that we talked about last week between 11 70 on the bottom side and 12 10 on the top side.

About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver