Precious Metals In Relation To Federal Reserve Notes
Hi everyone,
Just like I expected, there has been a temporary pullback in the precious metal market prices and may still continue to go down for a short term due to a normal correction or consolidation cycle. Even though a recession is on, inflation still shows its ugly head as a result of excessive debt paid by cranking the printing presses (making paper money) which is an indirect way to tax the people without them knowing.
Sometimes people ask Me when is the best time to buy the metals. Well the best time to buy gold was in mid 2001, in mid 2005 and in mid 2007. Best time to buy silver was in mid 2003, in mid 2005 and in mid 2007. Best time to buy Palladium was in mid 2005 and again in 2007. But those days are gone buy. However, because of the falling dollar (inflation) and economic crisis ahead, the metals are still a good buy, especially silver and palladium.
I sent out emails during those years to give people a heads up. I wonder just how many did in fact buy?
I believe that if the prices slip into the following ranges, it will be a good time to buy again before the next move up.
Metal Current Price Recent High Buy Range
Gold $972 $988 $850 to $950
Silver $19.66 $20.88 $15 to $19.00
Palladium $486 $582 $420 to $500
If they drop below the low end of the buy range, they are a steal even in yesterday's Federal Reserve Note (dollar) values.
Gold/Silver Ratio: 49.18 Historic ratio: 16:1
At today's gold price, silver should be $60. At today's platinum price, silver should be $128.
Gold/Platinum Ratio: 0.49 Historic ratio: 1:1
Platinum/Palladium Ratio: 4.22 Historic ratio: 1:1
Platinum is now at $2053 Platinum and gold prices were normally equal to each other in times past. Therefore, platinum is either overpriced or gold is undervalued at this time in relation to today's value in Federal Reserve Notes. I believe gold is still undervalued. But I still find Silver and Platinum are better buys at this time because they need considerable catching up to what was normal in times past.
Best time to buy is on a major drop in price.
Let Me know if this has been helpful.
Caleb
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