Gold price extends loss as Fed cuts rates, signals less easing
New forecasts showed several officials penciled in fewer rate cuts for next year than estimated.
Figures released by the US Mint on Friday indicate that sales of silver in year-to-date exceed those of gold more than fifty-fold in terms of weight.
According to the latest data released on Monday the US Mint sold 2,449,000 ounces of silver in the month of October, bringing the total sales volume this year to 28,244,000 ounces. Total gold sales by the US Mint this year are 525,000 ounces, for a silver-to-gold sales ratio in terms of weight of 53.8/1.
Silver Doctors says that the feverish sales pace for silver is unsustainable, as the current mine ratio for silver-to-gold is 9 to 1, and that if the price of silver per ounce rises above $50 the US Mint will be unable to keep pace with investment demand.
The precious metals site further asserts that total sales of Silver Eagles in 2012 could be between 33 – 35 million.
Comments
David
The gold/silver price ratio is just about the same as the sales ratio that you have quoted. So logically, to invest the same amount of $$$ in silver as you would gold, you would need to buy approximately 50 times as much.