Gold Prices in 2018

Gold Prices in 2018


– Hey guys. You know that I have
a very optimistic view of where gold prices are going to go. And when I say gold, I’m talking about all precious metals. Because I believe that the U.S. dollar is going to continue to decline in value. Which means that it
takes more U.S. dollars to buy the same asset. So an ounce of gold will
take more U.S. dollars. So it’ll seem like the
price of gold has increased. Now I always talk about this. But I also say that I
think silver and platinum are both going to do better than gold. And what I mean by that
I’ll explain right now. And if this is your first time here, my name is Peter Leeds. This is where we show you
honest investing strategies for maximum profit. So make sure to subscribe to the channel and click on the alert bell so that you’ll get all of these videos right when they come out. Here’s the thing is that there’s
this silver to gold ratio. How many ounces of silver does it take to buy one ounce of gold? And I talked to you guys
about this years ago. I’ve talked to you about this months ago. And it’s just getting
stronger and stronger. It’s taking more silver
to buy one ounce of gold. Right now it’s at about 80. It’s not gonna go much above 80, 85. Generally it doesn’t. Historically it hardly ever has. And the low end is that it’ll take about 30 to 40 ounces of silver
to buy one ounce of gold. And that’s not just in
the recent timeframe and the recent history. This is going back to way before your great grandfather was born. (laughs) I don’t know if that’s right, but it’s going back before you were born. And the thing is this. When the price of gold, I believe that the silver and gold ratio will normalize. When the price of gold starts to decline, you’ll see less of a decline
on a percentage basis from silver. So if silver, if gold drops 10%, maybe silver drops 8%. And if gold goes up 10%, maybe silver goes up 12%. And slowly over time, you’re gonna see a normalization
of versions of the mean of the silver to gold ratio. And the same holds true for platinum. What I’ll say about platinum though is that it historically is at
about twice the price of gold. So the platinum to gold ratio would be .5. One ounce of platinum, or a half an ounce of platinum would buy you one ounce of gold or one ounce of platinum would buy you two ounces of gold. Historically platinum is
at twice the price of gold. Right now it’s at about
90% the price of gold. And the thing is this. Platinum is excessively
more rare than gold. Something like 40 or 50 times more rare. It’s used in many more industrial uses, and gets used up. In airbags, dentistry, all sorts of stuff like that. More than gold does. There’s a lot less platinum. If you took all the platinum in the world and you squished it into one big cube, I always say that you could slide it into a two car garage and still have room to park your other car. Which is not a bad problem to have in any way you look at that. So platinum is going to start
reverting closer to the mean. Don’t even think of it
from the perspective of the platinum to gold ratio because they are too closely linked. They’re pressed, they’re too close together. So there’s no real value
in tracking it that way. The way to do it is to understand historically and realistically platinum is at twice the price of gold. The fact that it’s right now
about 90% the price of gold, that represents an opportunity. And I do believe that all commodities, all precious metals are
going to increase in price. As they do this, I believe that there will
be a reversion to mean or a normalization of
the silver to gold ratio. And the platinum to
gold ratio will go back to where they’ve historically been. And this is not something
that you need to act on today. This is not something that’s
gonna happen in the next week or even month, or a quarter. Because it’ll be a slow
thing when it does happen. And maybe there needs
to be some kind of spark or reason or precious
metals take off all at once. That’s gonna sort of shake it to get back to where it should be going. But in the meantime, it’s plodding along, plodding along. So keep an eye on platinum
specifically and silver as well. And if you’re really looking
to get into precious metals, then silver is probably going
to be a lot more lucrative in the next couple of years
than it would be to buy say, gold specifically. They’re very different metals though. Think of it this way is that gold is a lot better for flight to safety and insurance against chaos. Military action, that kind of thing. So, when you hear there’s going to be missiles launched at Syria, that generally scares people and a lot of money moves into gold and pushes the prices up. But, silver is a hybrid metal. Where it’s partly a precious
metal just like gold, but it’s also an industrial metal. Silver gets used up by industrial uses. And the same can be said for platinum. And the point is that precious metals are probably a great way to go. This is part of the reason, but not all of the reason
that there’s more millionaires made during the Great Depression than any other time in U.S. history. Because some people who owned gold saw the price of gold accelerate so strongly while all other assets like houses
declined very rapidly. So it’s a good idea to
own some precious metals. And this is all opinion. It’s not trading advice. I don’t know what you should do, I’m just telling you what I do. And you’re gonna hear a
lot of people talking, oh yeah, you should have 5%
of your portfolio in gold. Or 10%. This is part of the problem. The way things have gone. No one has been around long enough. Most people to understand
what the power of gold is. And what it does for people. And what it could mean. The other day, I was cleaning
out one of the drawers, and I dropped an ounce
of gold on the floor. And I kinda was picking it up, but I had this thought, it was a cool feeling that
I dropped this little coin on the floor, and it’s in a package. I dropped it and I picked it up. And I said, well, I’ve got
$1300 in my hand right here. And it was just this little tiny thing you put in your pocket and walk around with that money. No one’s ever going to know it. And just so you know, I
don’t keep my precious metals in the office, it’s a long story but
I had a couple here for all this stuff that I’m
dealing with right now. Personal life stuff, eh. Anyways, so (laughs) it was just kinda neat to see the power almost like of everything
that you’ve invested in is compressed into this one coin. And you can hold it and
walk around with it. Kinda like you might think
with a lot of other assets do. You know even you could say
this about stock certificates. Put ’em in your pocket and walk around if you want to do that. But the thing is that precious
metals are a commodity. They cannot go to zero. Any company, even a gold mining company, anything can go wrong. The CEO might be an alcoholic
or he might embezzle money from the company, whatever. It can go bankrupt. Even if it’s a good company
doing all the right things. Commodities cannot go to zero. If the price of gold went
down to five dollars an ounce, I will buy every ounce of
gold in the entire world. It won’t go to zero. It will never happen. It won’t ever even approach that. The point is that then you can own it. And you don’t have to worry about what the management’s doing because there is no management. And you also know that
you can take that ounce of platinum or gold or silver and you can sell it to somebody in Siberia or Malaysia and they know what it is. And they also understand the value of it. And it will always have
value wherever you go. I’ll also say too that
you should keep in mind that if you do decide to go this route and buy precious metals, and again, I’m not telling you to do that, I don’t know what you should do. I don’t know if you should
even finish watching this video ’cause I’m saying the same thing again that I said earlier. But, make sure you get
99.999% pure metals. Five nines pure. And there’s only a few places where you can really get these. One of the ones where I buy from. I buy from the banks. My own banks give me the metals. Also, I go to goldsilver.com and I don’t have any
relationship with them. I don’t get a kickback or something. I’m saying that I found
them to be reliable. Understand though that there’s a lot of added fees if you’re
going to get it shipped for insurance, et cetera. So, the price of gold is
going to be the main thing. But there will be a little
bit of an additional cost to that beyond that. And every vendor is gonna
have a different sort of rip I’ll call it, or different markup on
what they’re selling you. And you have to make sure
that the metals are pure because a lot of people
will sell you metals that are much less pure. Even 95% pure is not good enough because it’s not pure gold. This is just my opinion
how you could approach getting involved with precious metals. And if you don’t do it, no skin off your back. If you do it, you’ll
probably benefit from it. It’ll preserve your wealth. And as the U.S. dollar declines in value you’re gonna see that the
gold and precious metals will probably hold their value because they will
actually increase in price as the dollar declines. Thanks for much. I’ll see you guys next time.

32 Comments

  1. Excellent Video Peter! I do have to disagree regarding purity of precious metals to. YES 99.9% pure is more valuable but even 90% purity is still valuable. Most American's don't even own that! I say this because I believe (but not suggesting) that Junk silver is a great way to start investing very little money into precious metals. The USA had at one time minted all of their coins into Silver and many of those coins are still sold at coin dealers. they are relatively inexpensive and will still provide a profit when this bubble pops.

  2. I only do a tiny bit of investing – and I’m pretty much loaded up completely on silver – as you say, very nice knowing it’ll never go to zero, so only really a question of when, not if, it’ll come good.

  3. The British Sovererin is the world's most recognized Gold coin, has been for 200 years. It's a little under a. 1/4 oz 22k. I like it. In the US sale of Metals over $10000is reported to the IRS. A 1099 form. Not with coins with a monetary value stamped on them. It's always Tax FREE. Not so with bullion

  4. good video Peter. I think you covered all aspects of the PM. I like the way you covered the physical uses of the PM. Maybe you can not eat it, but you can trade it because someone needs it and it is insurance against a collapse. Thanks again for sharing

  5. Last Friday b4 the missles flew went my lcs bought more = 1oz GOLD MAPLE + 1oz GOLD AMERICAN EAGLE + 16oz Silver Maples…in my HAND

    I wanted a GOLD BUFFALO instead of the Eagle but they said earlier today someone bought all 15 of their GOLD BUFFALOS .. they bought the herd….

  6. Gold is controlled by central banks by naked shorting. Bitcoin will outperform Gold, Silver and all precious metals in 2018.

  7. silver is po mans gold I sold years ago when it hit 50 an ounce bought again at 12 an ounce I love buying things cheap and selling at inflated prices great advice peter

  8. Peter, why do you prefer to own the physical metal where there are large fees for buying and selling versus just buying an ETF like GLD or SIVR where the fees are minimal?

  9. I thought about platinum a week ago. Strange you mentioned it. I bought gold instead. Gonna get some next wk. 70% percent of my investments are in stocks. War and vice related. Can't go wrong. Shifting more into metals

  10. Great Video! I have invested in silver bullion for many years and one lesson that I have learned is to forget about buying collectible type bullion. During the 2008 crash I bought a lot of Perth mint chinese zodiac coins. In 2012 I needed cash quick so I brought my silver bullion to a silver exchange/pawn shop an what I quickly discovered is that you get absolutely 0 premium for the collectible coins. In fact the store owners actually preferred my American Eagle coins to the more costly Perth Mint coins! So moral to the story is that you can’t go wrong simply buying the cheapest 99.9% coin that you can find. I have found Silver Towne Mint .com a very nice mint to buy from. Ignore the high priced collectibles they have on the front page and simply buy the cheapest .999 that you can find. Physical Platinum is becoming very difficult to find now as most sites are out of stock. There is a lot of smart money buying physical platinum right now.

  11. Before WW1 in Europe No one own property except the Very Rich and their families. Only the US was mostly free. If you lived in the Commonwealth the Crown owned Everything. Freedom is what metals offers. To a degree

  12. what about the fact that we are going to electric cars and platimuns main use is cat converters which will be phased out when the gas engine is gone

  13. I do not get it… both S&P500 and Gold/Silver peaked and dipped around the same time frame during 2008… Why invest in precious metals before a recession? Am I missing something?

  14. The masses won’t buy silver until the price goes real high and the paperboy and table waiter start talking about silver and that’s when I know that it won’t be a long wait for me to sell my silver, the top won’t be too far away

  15. Please check my logic but, peters pick asanko AKG has sold a piece of its operation and plans to sell more. Up to 50%. That does clear up its debt and allow for development. But won’t it also cut its revenue stream in half in the short term?
    Another, great panther, GPL. I’m not good at math on this, but I calculate their life of mine is about 2.5 years.

  16. Peter , the one thing I don't get is , your a good looking dude , why do you have that old pic of you on the Peter Leeds you tube ? .

  17. I believe the main problems with Platnium in terms of price decline might have something to do with the decline in the car market as manufacturers are moving away from diesel. The industrial usage case has been under future threat because of this. It's currently not being viewed as a safehaven/precious metal at all

  18. You don't have to buy 99.999 pure gold. Many gold coins such as American Gold Eagle (AGE), Double eagle, Krugerrand, British Sovereign, 20 Francs, etc are only about 92% pure, but they are also as good because you're paying the gold contents in the coins, not the other metals in the coins.
    For example, since 1oz AGE is about 92% pure, but the coin weighs 1.091 oz, therefore it has 1 oz gold + .091 oz which consists of copper and silver. So it does not matter if you buy a 1 oz gold of 99.999 or 92%, both coins have exactly 1 oz of gold.

  19. Hi Peter, you might find this curious, the chart for cotton -CT is a match for SI , I have no idea why but is there a link somewhere,is cotton a go to store of cash/hedge of some sort ,ie precious commodity like rice , they both need lots of water in warm climes with limits on both water & land ??? Regards Mark

  20. ive just gone all in an put 90% my porfolio in gold and 10% in oil. should see fireworks over the next 5 years.

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