The Gold Update, wherein we find the yellow metal having settled yesterday (Friday) at 2673, a -0.3% loss (-8 points) for the week. Said by Mark Mead Baillie Mark Mead Baillie, Market Analyst in the Gold Stands Idly By as Silver Nears a 12-Year High!
Silver however for the same stint settled at 32.45, a +1.7% weekly gain (+0.53 points), achieving en route a nearly 12-year high of 33.23, such level having not traded since 13 December 2012. Not even cajoling Cousin Copper could keep sweet Sister Silver down. ‘Twas a beautiful thing as we here see per the cumulative percentage tracks of the BEGOS Markets’ Metals Triumvirate by the hour across this past week.
Silver’s sterling week was enough to bring the (albeit still excessive) Gold/Silver ratio down to 82.4x, its lowest closing reading since 23 July. Moreover, year-to-date expanded Silver’s leading position of the BEGOS Markets, the white metal now with a gain of +35.0%, (followed by Gold at +29.0% and then the S&P 500 +20.6% to round out the podium).
Specific to Gold and the murderous Mid-East mayhem, we were yet again reminded that the yellow metal’s swift upside reaction to geo-political barbarism was at best short-lived, price from late Monday into Tuesday being boosted from 2646 to 2695 only to then see it erode away into week’s end. We’ve written rather extensively on Gold’s “momentary” spikes over geo-political jitters, price then regularly receding.
That in turn reminds us of Gold’s most foundational element of valuation: ’tis not fearful events nor extravagant wedding seasons, et alia. Rather ’tis the debasement of currency that gives lasting value to Gold. And as our opening Gold Scoreboard shows, by Dollar debasement, the yellow metal today ought be- fetching $3,741/oz. So yes, for you WestPalmBeachers down there, priced today at $2,673/oz Gold remains cheap; and Silver still super cheap given the century-to-date average Gold/Silver ratio is but 68.5x.
