Summary
- James Anderson anticipates the Gold/Silver Ratio will trade in the 60s range during the current cycle.
- The recent BRICS meeting highlighted Russia's aim, along with other BRICS nations, to create a more transparent precious metals market.
- Silver prices surged this week, nearing $35 per ounce, reflecting increased market activity in precious metals.
- India’s yearly gold and silver price charts in fiat currency show silver lagging behind gold, but this trend may shift soon.
- India’s 2030 and 2032 renewable energy goals require substantial silver, designating it as a critical resource for solar panel and battery production.
- Approximately one-third of silver’s industrial demand now goes to solar panel production, a trend expected to increase.
- Record silver deficits, where demand outpaces supply, are likely to persist, particularly as India continues high silver importation for its energy infrastructure.
- Silver remains undervalued compared to gold, with India witnessing a rise in silver demand for gold-plated jewelry.
- The spot silver price closed below $34 per ounce, and spot gold below $2,750 per ounce, with the Gold/Silver Ratio breaking 80, suggesting further silver gains.
- Paul Tudor Jones highlighted potential inflationary risks for the US dollar, supporting strong fundamentals for gold and silver's future valuation increases.
Quick snippet from my interview two days ago last Wednesday Oct 23rd with Dale Pinkert of FOREX Analytix. Full link in show notes below and on my twitter feed @JamesHenryAnd
James Anderson looks for the Gold/Silver Ratio to trade in the 60's this cycle - ForexAnalytix interview from Wed., Oct 23, 2024
Probably the most important thing to note about the recent BRICS meeting is the further move of Russia and other BRICS players aspiring to build a supposedly more fair and honest price discovery market for their precious metals interests.
Russia being a massive player in palladium and gold globally speaking briefly above $35
Silver popped this week with the silver spot price nearing $35 oz. More on this week's silver and gold price action later.
First some legit silver coverage from CNBC India.
This is the yearly fiat US dollar gold and silver price chart full fiat currency era.
Silver is still obviously lagging gold, but unlikely for much longer.
India is already foreshadowing this when we see their same gold and silver annual price charts for this full fiat currency era.
Now let's see this same data in a percentage gain respecting logarithmic gold silver fiat rupee price chart.
India has declared massive renewable energy target goals for 2030 and 2032 respectively. A large swath of the projects will be silver heavy used solar panels and battery technologies.
India's ministry of Minister of New and Renewable Energy has declared silver a critical resource so at least some nations are telling their citizens the truth.
All trends point to more silver in solar panels to come globally. Already about 1/3rd of silver's growing industrial demand is for solar panels, expect that to keep growing in time.
As alleged poor man silver buyers go with silver over gold, expect to continue to see growing trends in India for instance of silver jewelry plated by gold.
Indian headlines such as these should also drive FOMO locally by investors.
Fundamentally record silver deficits where global silver demand outstrips annual supplies are likely to continue for some time to come. At least up and until silver spot prices climb walls.
Meantime expect to continue to see India go heavy silver importation as they emerge and further develop their renewable energy grids further.
Silver still has a lot of catching up to do relative to gold.
Stick around, on the other side of this break we will discuss gold, silver, and get a bit more from Billionaire hedge fund trader Paul Tudor Jones' comments from this week.
The spot and silver and gold markets were a mixed bag this week, with silver nominal price levels not seen since late 2012.
The spot silver price closed just under $34 oz and the spot gold price closed at a still strong just under $2,750 oz bid.
The spot gold silver ratio did break 80 intra week and it has me thinking a revisit this silver run towards lower 70s even 60s is possible not very long from now.
Even with relatively higher interest rates, and the US dollar strengthening of late relative to its major fiat peers.
The fundamentals underlying gold's future re-ratings higher in real values continue to look strong especially comparing now in 2024 to pip squeak 2011, and the old 1980 bull that nearly crushed the system.
The western world, specifically the USA, has promised more than she can deliver. And one way or another screaming gold values higher will account for that present and future fact.
Here is Paul Tudor Jones basically telling you our fiat currency of issuance is heading towards a historically predictable inflationary quagmire to further come.
Gold and silver are still relatively cheap.
That is going to be all for this week's SD Bullion Market Update.
As always to you out there.
Take great care of yourselves and those you love.
