 |
 |
 |
 |
 |
 |
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_7a.gif)
Metal prices can vary widely in the spot market. The gold price, silver price, platinum price or palladium price are shown below. 1 troy ounce = 31.1034768 grams. The 200DMA is the 200 day moving average. The Relative number is the current price divided by the 200DMA. As I discussed in 200 Day Moving Average – The Pull Of Gravity, this shows whether the metals are cheap, average value, expensive or really expensive. The goal is to buy low and sell high.
I have found that during this secular bull market, gold in relation to FRN$ is valued by the market as cheap when its relative price is around .99, average value between 1.00 and 1.25, expensive between 1.25 and 1.35 and very expensive above 1.35. This can be accomplished by looking at the relative price and using standard deviations to form trading ranges.
METAL PRICES DATA
The value gold adds to society is in performing mental calculations of value. The constant marginal utility is unmatched by any other commodity. Therefore, gold is money and a currency. Most people perform mental calculations of value, the pricing mechanism, in US$, C$, Euros or some other national currency. However, all are ‘bills of credit’ and subject to Payment Risk. Those who disagree, and most financial professionals do, are like those who disagreed with Copernicus. Politicians who disagree can no more change this fact than vote to repeal the law of gravity. The earth (US$) revolves around the sun (gold). Either gold is a portfolio asset or everything else is. This is monetary law. This principle has been taught for centuries.
“What we fancy to be a rise in value of our products is merely an alteration of the name in money that we exchange them by; they are not altered thereby, in their exchange value, with regard to each other.” – Charles Holt Carroll in an 1857 essay on page 54.
