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Up Next: Silver-Buying Parties?

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I recently heard a commentary by David Frum on American Public Media’s Marketplace radio show  (text of it is here) that had my eyebrows raised by the end of it. It was on the rising price of silver.

Since you’re dealing with precious metals day-to-day, it may not come as news to you that the price of silver has increased 69 percent in the last six months. It was news to me, I admit.

What’s more interesting than just its recent rise, though, is silver’s relationship to the price and supply of gold. Geologists estimate that silver is roughly 17 to 18 times more prevalent than gold. So it makes sense that the price of silver has historically been about 1/16th the price of gold — not exactly proportionate, but close.

But with the rise in gold prices these past couple of years, what did silver do? Not that much, really. Back in February 2010, the average silver price was 1/69th the price of gold.

So the question is: Is silver too low, or is gold too high? Well, sure, in retail jewelry in a tough economy, many would agree that gold’s been too high, which is why so many INSTORE readers report success in gold buying, frustration in gold-jewelry selling and an increase in silver jewelry purchases.

Speaking macro-economically in his commentary, Frum suggests a growing silver and gold bubble.

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On a level that affects you, it could mean that the cost of those silver pieces that have been at your plumb price point could soon be going up — and that price has a ways to go, if silver balances out with gold’s price. As I write this, silver is $29.11 an ounce, making it 1/47th the price of gold. (If it were at its historic price differential of 1 to 16, it would be about $86 a ounce.)

Probably not worth planning a silver-buying event just yet, but the price of silver is definitely something to keep an eye on.

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Wilkerson Testimonials

Retirement Made Easy with Wilkerson

The store was a landmark in Topeka, Kansas, but after 80 years in business, it was time for Briman’s Leading Jewelers to close up shop. Third generation jeweler and owner Rob Briman says the decision wasn’t easy, but the sale that followed was — all thanks to Wilkerson. Briman had decided a year prior to the summer 2020 sale that he wanted to retire. With a pandemic in full force, he had plenty of questions and concerns. “We had no real way to know if we were going to be successful or have a failure on our hands,” says Briman. “We didn’t know what to expect.” But with Wilkerson in charge, the experience was “fantastic” and now there’s plenty of time for relaxing and enjoying a more secure retirement. “I would recommend Wilkerson to any retailer considering a going-out-of-business sale,” says Briman. “They’ll help you reach your financial goal. Our experience was a tremendous success.”

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Up Next: Silver-Buying Parties?

mm

Published

on

I recently heard a commentary by David Frum on American Public Media’s Marketplace radio show  (text of it is here) that had my eyebrows raised by the end of it. It was on the rising price of silver.

Since you’re dealing with precious metals day-to-day, it may not come as news to you that the price of silver has increased 69 percent in the last six months. It was news to me, I admit.

What’s more interesting than just its recent rise, though, is silver’s relationship to the price and supply of gold. Geologists estimate that silver is roughly 17 to 18 times more prevalent than gold. So it makes sense that the price of silver has historically been about 1/16th the price of gold — not exactly proportionate, but close.

But with the rise in gold prices these past couple of years, what did silver do? Not that much, really. Back in February 2010, the average silver price was 1/69th the price of gold.

So the question is: Is silver too low, or is gold too high? Well, sure, in retail jewelry in a tough economy, many would agree that gold’s been too high, which is why so many INSTORE readers report success in gold buying, frustration in gold-jewelry selling and an increase in silver jewelry purchases.

Advertisement

Speaking macro-economically in his commentary, Frum suggests a growing silver and gold bubble.

On a level that affects you, it could mean that the cost of those silver pieces that have been at your plumb price point could soon be going up — and that price has a ways to go, if silver balances out with gold’s price. As I write this, silver is $29.11 an ounce, making it 1/47th the price of gold. (If it were at its historic price differential of 1 to 16, it would be about $86 a ounce.)

Probably not worth planning a silver-buying event just yet, but the price of silver is definitely something to keep an eye on.

Continue Reading
Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

Retirement Made Easy with Wilkerson

The store was a landmark in Topeka, Kansas, but after 80 years in business, it was time for Briman’s Leading Jewelers to close up shop. Third generation jeweler and owner Rob Briman says the decision wasn’t easy, but the sale that followed was — all thanks to Wilkerson. Briman had decided a year prior to the summer 2020 sale that he wanted to retire. With a pandemic in full force, he had plenty of questions and concerns. “We had no real way to know if we were going to be successful or have a failure on our hands,” says Briman. “We didn’t know what to expect.” But with Wilkerson in charge, the experience was “fantastic” and now there’s plenty of time for relaxing and enjoying a more secure retirement. “I would recommend Wilkerson to any retailer considering a going-out-of-business sale,” says Briman. “They’ll help you reach your financial goal. Our experience was a tremendous success.”

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Most Popular