Keith explains why Gold to silver ratio is high and how it works.

I do not understand??? May be smart members do!!

Read last half of the post in the link.

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http://news.goldseek.com/GoldSeek/1555430241.php

Supply and Demand Fundamentals
The price of gold inched down, but the price of silver footed down (if we may be permitted a little humor that may not make sense to metric system people).

For the gold-silver ratio to be this high, it means one of two things. It could be that speculators are avoiding the monetary metals and metal stackers are depressed. Or that something is going on in the economy, to drive demand for the metals in different directions. One metal is money without counterparty risk. The other is also money but a big part of its demand is from its use in a wide variety of products.

Our president simultaneously told us that the economy is strong, and that the Fed ought to lower rates. If the economy were strong, the demand for silver should be higher. If the Fed lowers rates, then that should rapidly increase the quantity of money and, every speculator knows that should drive prices up.

From the price action, one would say that silver does not seem to be getting either of these messages.

Incidentally, we are doing something to affect the demand for silver—we are paying interest on silver, in silver. We are opening a fresh silver lease deal this week. Contact us, if interested (pun intended).

Anyways, let’s look at the supply and demand picture of silver (and gold too). But, first, here is the chart of the prices of gold and silver……..