Huge rally in gold - up $100 oz in overnight trading

[Anticollectivist]

I just noticed gold was up $100 oz and silver is up .89 oz tonight. But already just a few minutes later prices are coming down some but still up big. Seems to be a lot of volatility and Im guessing this might have something to do with the Brexit vote (Britain deciding whether or not to leave the EU) but Im not sure. Im also wondering if this might be the single largest intraday price increase in the history of gold. It will be interesting to see where prices close tomorrow and if gold can finally close over $1300 oz for the first time in 18 months or so.

Seems to be a lot of resistance to gold closing over $1300 oz lately but tomorrow could finally be the day. But if not tomorrow it will be happening soon and the huge rally in overnight trading tonight is just an example of many more huge rallies in PM prices in the weeks and months ahead.

[Zippyjuan]

Market shock at the surprise result but things should calm down in a couple of weeks. Stocks may be volatile for a few days too. Monday could be excellent days to buy shares.

[Brian4Liberty]

Market shock at the surprise result but things should calm down in a couple of weeks. Stocks may be volatile for a few days too.

Wow, that was quick. Does Satan send his press releases to you directly?

http://www.ronpaulforums.com/showthread.php?493456-The-Official-BREXIT-Thread&p=6247025&viewfull=1#post6247025

[Zippyjuan]

What?!! He spoke to you first?

[Brian4Liberty]

What?!! He spoke to you first?

He had a spokesperson on CNN.

[oyarde]

Gold @ 1315.60 , Silver @ 17.72 . I am expecting 1390 Gold this summer and Silver over 19. I am making money anyway so, no matter.

[Anticollectivist]

Well at least gold was finally able to break through the $1300 resistance level and finally close above $1300 for the first time this year. There is likely to be many more big rallies in PMs this year and for more sensible reasons than whatever noise there might be overseas. Like for example - we are back in an official economic recession again now, the Fed will likely be cutting interest rates again by the end of the year and starting another round of QE and all fiat currencies esp the USD are completely worthless.

It may be too soon to be putting real economic logic into the equation now but once some sense of economic sanity returns to the markets again PM prices will be soaring well above all time highs once again. Its only a matter of time because the bull market in PMs is just getting started once again and the Fed tricks to try and stop it aren't going to work this time.

[oyarde]

Looks like about 1325.

[Anticollectivist]

Yeah it was good to see that gold didn't sell off on Monday after Fridays big gains. But Im wondering when silver is going to finally start catching up to gold and get back closer to historical ratios of somewhere between 20-35 to 1. Right now the ratio of silver to gold is about 74 to 1 which means silver is very undervalued relative to gold and should have much bigger upside potential relative to gold in the future. Five years ago when gold was near $2000/oz and silver was near $50/oz that was a 40 to 1 ratio so silver has obviously had a much bigger sell off since then and has a lot of catching up to do. I imagine when the PM markets start to skyrocket once again silver will start outperforming gold to get back closer to its historical ratio once again.

[Zippyjuan]

Yeah it was good to see that gold didn't sell off on Monday after Fridays big gains. But Im wondering when silver is going to finally start catching up to gold and get back closer to historical ratios of somewhere between 20-35 to 1. Right now the ratio of silver to gold is about 74 to 1 which means silver is very undervalued relative to gold and should have much bigger upside potential relative to gold in the future. Five years ago when gold was near $2000/oz and silver was near $50/oz that was a 40 to 1 ratio so silver has obviously had a much bigger sell off since then and has a lot of catching up to do. I imagine when the PM markets start to skyrocket once again silver will start outperforming gold to get back closer to its historical ratio once again.

Gold to silver ratio has only been as low as 32 once in the last 30 years. "Normal" is more in the 60 range. Gold hit $1900 an ounce in August 2011. http://goldprice.org/gold-silver-ratio.html

http://ec2-52-21-214-102.compute-1.amazonaws.com/charts/history/gold_30_year_silver.png

(gold has started to move down in early hours trading today)

[Anticollectivist]

Well, I wasn't thinking of the fiat currency years when I refer to historical norms. Nothing since Aug 1971 has been normal in regards to the relationship between the price and real value of the USD and the price and real value of PMs. But a 40 to 1 ration when silver and gold were at all time highs about 5 years ago is much closer to the ratio of silver and gold when it was still considered as money. And a 40 to 1 ratio is probably much closer to economic and monetary logic and reason than the irrational 74 to 1 ratio of today.

[oyarde]

Looks like Gold around 1320 and silver 17.90

[Anticollectivist]

Well silver sure had a good day today and outperformed gold rather significantly. After todays 3% increase in silver and 1% increase in gold the ratio is down from 74:1 to 72:1 just in one day. Should be plenty of more days like today in the near future with silver outperforming gold and getting back to a more sensible ratio once again. But whatever the ratio might be in the future one thing is for certain - prices of both precious metals are going much much higher.

[oyarde]

Gold at 1339 and silver at 19.28 . Looks like I am making money :)

[Anticollectivist]

Hi Ho silver. Well, silver was up over $1 today and up about 11.5% for the week. And after this weeks amazing performance silver is now outperforming gold year to date and the ratio is now down to less than 68:1 (meaning it now takes less than 68 oz. of silver to equal 1 oz of gold). But that ratio is still very high so silver should continue to outperform gold for quite a while. But this silver bull and gold bull market is just getting started once again. Those of us that have been preparing for this resurging bull market in PMs to return again are going to be greatly rewarded for our patience and clear understanding of sound money.

[oyarde]

Being patient with sound money has always pd for me.

[Seraphim]

Being patient with sound money has always pd for me.

agreed... 5-20% allocation to physical PM's as the corner stone of your money/currency allocation is prudent.

[Anticollectivist]

Well it seems kind of appropriate that today on Independence Day silver had another big rally and was up over 3% and closed above $20/oz for the first time in well over a year. The silver to gold ratio is now down to just slightly over 66:1. Im sure glad I loaded up on more physical silver in the first quarter of this year but I just wish that I had added more to my PM stock holdings than I did because PM stocks have been exploding even more than physical PM prices this year. But there is still plenty more upside to go in the PM markets because after a 5 year or so correction this PM bull market is only just getting started once again Hi ho silver away.