Sunday, July 24, 2011

Louise Yamada: $5200 Gold, $85 silver

Okay...many of these 'outrageous' claims for where these metals are headed long term are from people that have been in buisness for over 25 years, and are putting every ounce of reputation on the line. Its beginning to be a trend, not just randoms anymore.

From KWN: “Gold continues to be in an uptrend in our work. You had a little bit of a consolidation, seasonality would suggest a rise into the fall. The primary support level remains at $1,475...Our next target is $2,000, and we did a gold special in our last piece that suggested from a very long-term perspective...we could see $5,200 on gold.” Click here for entire article...


  1. at a dollar a day, that's just under 10 years.

  2. Where were all of these Pro's when Santa. Jim Sinclair publicly called the bottom in 2001? How about that Alf Fields also?

    Santa will go down in unrecorded history as the master of the gold world for all he has done for the average man. I know I called him personal a few years ago and thanked him from the bottom of my heart.

  3. that's still a 61 to 1 ratio... that blows!

  4. Goboy9...that's correct 61 to 1. I have listened to Yamada for quite some time as well as dozens more.

    There is no way we will see a 61 to 1 ratio with gold that high. When gold gets that high of a price, there will be no faith in any paper currencies.

    Furthermore, there will be no faith in the quadrillion dollars worth of derivatives. It really amazes me that Yamada pegs silver at a lousy 85 clams.

    Most of these analysts which I have a great deal of respect, fail to think outside the box.

    Silver will hit triple digits and will be a monetary metal valued closer to 15/20 to 1.

  5. Technicals not looking good for soybeans. Adding a short or 2 this morning.

  6. As a reminder, today the huge silver short @ $USD 25 expires... I guess he was off by $15? :)

  7. So what should the ratio be if not 61 to 1?

    30 to 1?
    22 to 1?

  8.'s difficult to try and pinpoint the correct gold-silver ratio. If we go back to 1980 the gold-silver ratio was 17 to 1. Gold hit a high of $850 and silver $50.

    Today, gold is nearly double and silver has not yet stayed above $50. Silver has a lot of catching up to do.

    The reason why silver has been priced 50/70 to 1 for decades is due to the fact it is was priced more closely to its cost of production. Big zinc miners could care less if they got 2-3 million ounces of silver with their zinc.

    Because 70% of silver global production comes from a by-product of base metal mines, its cost is negligible....whereas gold is much different.

    Silver should be far north of $100 right now. They only thing keeping it from being there is the PUBLIC AWAKENING. Some student did a simple documentary at the Harvard Campus and asked the students how the economic slowdown affected them. At the end she offered them a Silver Eagle for $5.00. None.....I mean none would take it and the price of silver was $25-30 at the time.

    So you can see the US GOVT has done an excellent job in BAMBOOZLING the public into believing that worthless Fed Notes are money.

    The higher the price of silver, the more the PUBLIC wakes up. That will be the barometer.

  9. SRS, you are a beast with your phyzz responses.

    Do you have an idea about the gold/silver ratio that we're facing now?

    Currently, we're at 39.99:1. I swapped my AG for AU back when it was 34:1. Do you think that we might still have a window for 43+ to 1?

    The ratio teetering at the 40s has me a bit weary, as I always was a bug for silver, not gold. Holding all yellow, and not a fan!

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  12. @Silver Price Live

    So... you're new. What kind of introductory post is that?

    Who are you and why are you promoting yourself so hard?

  13. Just trolling for support
    I Have spent a year on it. I'm just a silver fan big time.

  14. Last chance to fuck off dude. 10 minutes in and you already pissed me off. If you would have asked I amy have did a post on you. Forget that shit.

  15. SPL: You for real? ahhh cant wait to get on the new site...

  16. @SRSrocco - you are "spot" on... thanks for your insight and obvious wisdom. I sense you have been around for a while and understand this market well. I have a question; we consistently say that G/S will be at such and such price i.e. G @ $5k and S @ $150 an oz... this is based on what economic snap shot? What happens if/when the dollar either collapses or is thrown into a bucket of other worthless currencies and the purchase power has gone the way of the 1929 duetsch mark? Will it be a matter or seeing what the "new" currency is based on?

    Also, you made a great point in your answer to "OneLifeLiveit" regarding the us gubment consistently down playing the importance of G/S value. I was ASTONISHED when bernanke said that gold was not money!! This does apppear to be their "official" stance and is doing a huge disservice to the amerikan public by issuing statements like this.... joe schmoe hears this and says "why the hell would i want to by G/S when the gubment is saying it's not even real currency"? Thank God Ron Paul was able to get the statement in (on record) that Gold has been a currency for 5 thousand years... i hope people heard that. Anyway, thanks again for your insight, it's good to read balanced perspectives and SGS has created a fantastic forum here and it appears to be drawing good folks.

  17. godboy9.....I was also a bit shocked when the BERNANK said gold was not money. He also went on to say a sentence later that he also believed US Treasuries were not money as well. We have to at least give him credit for getting one of those remarks correct. By stating gold was not money should be proof to all the NAYSAYERS that the US Govt is indeed manipulating gold and silver....don't forget oil as well.

    There are several scenarios that can take place in the next few years. There is the most probable one...and that is a Hyperinflationary Depression like no one has seen before. Instead of prices for goods decining during a typical depression, they will skyrocket.

    Then we can have the world central banks trying to put together some sort of LAME WORLD CURRENCY. This might last a year or two tops, but that will fail as well. Gold and Silver will still do well in both of these scenarios.

    Lastly...the one I think is gaining more of a possibility every passing day is a complete breakdown in the Fiat Currency-Compound Interest-Fractional Reserve-Supply Chain System. This is the real reason why the CLOWNS up in GOVT are printing and bailing out everyone and the kitchen sink.

    I really don't believe Peter Schiff really understands what happens if we just allow the Banks to Fail and get Govt out of the way. Believe me you...I am all for that as my wife and I have our self-sufficient operation going in our neck of the woods. Learning how to grow ones own food, setup fruit orchards, raise livestock and have free range chickens for eggs is a full time job in itself.

    My concern when the WIND TURBINE finally hits the COW EXCREMENT is the total breakdown in our WAY OF LIFE for the masses. It will be a living hell in the Big Cities. Here gold and silver will still do well...but in a different way.

    This is when you will see people walking up to a run down store wearing gloves without the fingers on them like you see in the movies turning it bits of silver for preciously rare amounts of foods and goods.

    Those who think BIG BROTHER will wisk us away in containment camps need not worry. The FED GOVT will become a worthless and nonoperational entity at this time. We have to remember in a FALLING EROI...all large entities suffer the greatest.

    I hope number 3 does not take place, but we are prepared if it does.

    ONE MORE THING...I am glad SGS is moving to a new site. I have a great deal of info on many topics...especially on silver that you folks will not find anywhere else on the internet.

    There are a great deal of decent gold and silver analysts out there...but they fail to factor in PEAK OIL and the FALLING EROI in any forecasts going forward.

    You all are going to get it here in SPADES. You will be of some of the best educated and most informed silver investors on the internet.


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  19. @SRSrocco - thanks for your great info and thoughtful answers. I look forward to reading your future postings. I have one more question to lay on ya; how do you think the "system" will manage credit card debt of consumers if the "system" does implode? I suspect it just won't go away.... or would it? If a currency fails, how does debt get repaid?? Eagerly awaiting your insight...

  20. goboy9....that is a question a great deal of Americans would like to know the answer. I imagine, there are tens of millions of Americans with high credit card balances.

    The best answer I can give you is the following:

    If the system of every day life in the USA implodes, the credit card balances will dry up and blow away. Unfortunately, this will be the least of Americans problems at that point in time.

    If the system does not implode quickly, and their is a default, the dollar will lose value. Hell, it will lose value either way. The Fed will have to print money hand over fist which will some smart Americans (holding silver and gold) to pay back their debt with inflated dollars. Debts normally stay the same. This is the benefit of hyperinflating a currency.

    This scenario is happening right now. Say for instance someone had a $1,000 credit card balance as of July 2010. They made the minimum payments and interest but the balance is about the same today. If you had bought silver in July you would have paid 18 Clams an ounce. Today it is going for more than double that amount at $40 clams.

    If you bought $500 dollars in July 2010, you could now pay off your Credit Card bill as the Dollar has lost more than half of its value in silver terms since July 2010. You would have something like $1100+/- dollars...thus you can pay your debts will inflated dollars.

    As the system goes further into Hyperinflation, you might wait around another year, and silver might be $100. Now you would have made 5 times your money or about $2700 from the orginal $500 at $18 an ounce. See how this works.

    Unforuntately...most Joe-Bag-of-Doughnuts out there do not hold silver. They work jobs that will pay less...thus they will not be able to pay their debts with inflated dollars. Wages will not inflate with the hyperinflation.

    Time to own PHYSICAL SILVER and GOLD

  21. SRSRocco,

    Another great informative response. Guess you missed my question... do you know any specifics with the G/S ratio that we're facing now and in the near future?

    I'm going to be swapping my G back into Silver As soon as I can, but just seeing if there's any info that you might have on deck that concerns our G/S ratios.



  22. PaidinGold....I am not the best short term trader on the block. I do plan on trading some of my silver for gold when the ratio does fall below 25 to 1.

    It is a tuff question you ask because we can never tell what the CLOWNS up at the FED and USGOVT will do. Will silver selloff with the DOW like it did in 2008 and gold hold its value?

    That is the question. I think this time is indeed different. I don't think we will have the same selloff as we did in 2008. The US GOVT and FED blew their whole wad of cash to save the system and cannot do that again this time around. The world has gotten a lot wiser.

    My gut tells me the GOLD/SILVER ratio keeps falling from here....but again...that is my take on it.

    I wish I had better CRYSTAL BALL NEWS for you but everything is manipulated. I am still putting together that new GUEST POST on the REAL COST OF MINING SILVER and let me tell you, I have learned new things that I didn't before.

    I will say this, the CASH COSTS of mining silver are a joke. Hecla showed that one of their mines had a cash cost of -$3.00. the end of the year in 2010 they only made 11.5% clear when everything was paid for.

    This goes to show you that CASH COSTS are really just a way of Mining Companies to "BRAG" how big their TONNAGE is.

  23. Thanks SRS. I look forward to your next guest post, and I will hastily look for an outlet to swap my gold back into that shiny white shit. It'll be hard as I'll try to do it in Korea, where gold is all that shines (in the majority's heads)...

  24. "Will silver selloff with the DOW like it did in 2008 and gold hold its value?"

    Not a fucking chance.