Peter Hug of Kitco News agrees with illuminati silver over the Gold to Silver Ratio

Peter Hug of Kitco News agrees with illuminati silver over the Gold to Silver Ratio

Welcome to illuminati silver, we tell you
the truth about silver. Today is Wednesday 16th March 2016 and we
are very briefly expressing our views which are confirmed by Peter Hug on the gold to
silver ratio. We have been asked by many subscribers about
the gold to silver ratio or GSR and whether we are expecting a significant drop in that
ratio any time soon. For many months we have said No, in fact our view was that if anything
it may rise. Now many of the pumpers are saying ‘buy silver it’s a steal’ compared to
gold and the current GSR is not sustainable. Well when we were first asked this question
the GSR was around 75 – 76 having been as low as 69 at one point in 2015, since then
it’s been up to 83 and today with gold standing at $1233 and silver at $15.31 the ratio currently
stands at 80.5:1 Now the broad difference between the two metals
is that just over 50% of silver demand is for Industrial purposes and a little under
for monetary or investment purposes (broad brush). Whereas with gold around 10% is industrial
and 90% broadly monetary and investment. So when we are in an economic downturn it
is not unreasonable to expect the price of silver to underperform the price of gold as
industrial demand declines. Equally in a buoyant economy it would not be unusual for silver
to outperform gold, again, because of industrial demand.
Now we all know the argument put forward by the Jim Sinclair’s of this world who state
that silver will be ‘gold on steroids’. Well indeed that may happen, but only when
there is such a rush by the investment Community to gold so that gold becomes so expensive
that the ordinary man in the street cannot afford it and therefore rushes to buy silver
as a substitute. Now this could happen, but the probability factor is not as high as many
of the pumpers would have you believe. The world’s economy collapsed in 2008 and since
then the harbingers of doom have stated that there is a bigger one just around the corner.
Indeed there might be. However so far this has been avoided and despite numerous world
conflicts, negative interest rates, poor or questionable employment figures and stagnating
economic growth we have still not seen the dramatic rises that many have been predicting.
Now this view is backed up by none other than Peter Hug, the Kitco’s Global Trading Director,
and this is what he has to say: …………………….. So there we have it, our consensus is that
for the present there is unlikely to be a major change in the Gold to Silver ratio for
the foreseeable future. We hope you have found this video interesting
and informative and if so, please give it a thumb up and share it on twitter. Also kindly
visit our website at and look at our Facebook page which is updated
daily at Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.


  1. Unless we have some unforeseen economic event I do not see silver breaking out. As for gold moving to increase the ratio, it is hard believe some of the calls out there for $10,000 gold. While silver has a large industrial component, I believe is will follow gold even if only in a small percentage way. Silver will not have it's day in the sun for some time.

  2. I tend to agree. There is no particular reason for the GSR to revert to some historical value. It is possible however that institutional investors may feel they have missed the boat on gold, given the recent rise, and will buy silver instead, but I think it more likely that they will try to drive the gold price down to give themselves an entry.

  3. Great video, as always. I agree 100% with this view. But I believe the GSR will go above the 100:1 within the next year or so.Due to the small size of the Silver market, the COMEX is easily manipulated with paper contracts (Bloomberg admitted in 2014 that the paper to physical Silver market was 250:1)Just last week there were roughly 34 owners to every 1 physical oz. of Silver on the COMEX.If you believe that Gold will rise significantly over the next decade, as I do, then Silver will be pulled up with it.The question remains, at what ratio will it be? I prescribe to the view of Charles Gibson from the UK. He believes that once Gold begins to rise, the GSR will revert back to 20:1If you look at the mining ratio of Silver to Gold, it currently is at 9.125, and the market is 81:1?LOL.

  4. Thank you for the information IS. Just curious, do you think the world is better off today than in 2008-2009? Are debts larger or smaller? Less war or more war? You may very well be right about PM's, however at some point, sooner rather than later, a day of reckoning is coming. No idea when that will be, but most feel it is just over the horizon. Thank you and good day!

  5. Any thoughts on if Trump is elected as president of the United States and bringing back jobs to America?

    thank you

  6. The industrial influence on silver also has a flip side. Half of silver use is currently industrial, but silver makes up very little of the overall price of the products made from silver, but a silver shortage will shut down production of products that rely on silver. For such reason you could very easily find companies that need silver moving to protect themselves by making large orders at any price, since the overall price effect on their products is low. Add to the fact that governments own large stockpiles of gold, but not of silver, so there is no white knight to ride in and save the silver market the way there is for gold. Of course, this is reliant on the rumors of potential silver shortages ending up to be true shortages, and not just supply bottlenecks for coins. And yes…the smaller silver market is indeed more manipulated….

  7. Thanks Illuminati. The GSR is one thing I keep a close eye on. It is also worth constantly reminding people that silver is a precious industrial metal.

  8. I usually don't post but  when things are being shared that are not accurate, especially since I feel the matter is critical for many, I must share MHO. I/S's opinion is full of facts, industrial % demand versus gold etc. What I/S doesn't acknowledge is that when there is a flight to safety, into Gold, there is a natural correlation by silver. Always has been, Always will be. You only need to look at todays price action in gold and silver in reaction to the fed decision. If I/S was entirely correct there would not have been a reaction in silver like there was in gold today.  I don't think industrial silver demand sky rocketed today for some reason. I own Silver simply in case the proverbial "shit hits the fan" and I am confident that if it does there will be a flight into Silver along with Gold and if that happens no one will care what the damm ratio is!!!IMHO

  9. You are 100% correct in a stable world with logical reasoning. I don't disagree with any points you have ever made "if" things remain consistent. However, I don't think anyone who buys bulk silver like I have believes that things will remain consistent. I'm not expecting an end of the world scenario at all…but I am expecting Citigroup, Deutsche Bank, and Barclays banks to take a huge hit soon, and I don't think anyone would believe my theory is irrational. Also, I do not see how a United States debt over $20 trillion is sustainable, or how OPEC moving away from the dollar will strengthen the dollar. Its also important to mention that the short positions match the volumes seen in 2008. I'm not a fan of psychopaths…but George Soros and Warren Buffet even said we are headed for a major financial crisis this year. Hell….even Deutsche Bank is telling people to buy gold. When in the history of the world have you seen a bank tell people to buy precious metals? Heres my point….you are CORRECT in a consistent and stable world that functions on logic, but I do not believe those are the times we live in. You mentioned silvers industrial demand, and again in a logical world your point makes sense. But what about in a world where negative interest rates continue to take place, currencies continue to collapse, and the demand for gold is so high that the average man cannot even afford it? In that scenario the only option for the average guy on the street is silver. I'm not expecting silver prices to go over $100 an ounce….but it has gone to $50 and above $30 a few times. Is the world more economically stable than it was during those times? Hell no. You are correct in making the point that in a horrible economy industrial demand for silver slumps….but I think you might be underestimating the role FEAR plays in a market where the average guy can no longer afford to buy gold. I didn't even get into the China gold price fix rumored to begin in April.

  10. There is the possibility of reverting back to a metal standard. If the countries leaders have any brains what so ever that's exactly action they'll take. You have to admit the politicians are like fiscally irresponsible, and that's an understatement. If my wife spent my money like they do I would have her admitted to the psych ward.

  11. Since industrial sector is slowing down does this mean that mining sector will also be affected? I ask this question based on your silver opinion.

  12. Historically 80 is a steal, and I would argue a great entry point if you want to play the ratios. The ratio play is long term though. Its not just going to go from 80 to 40 over night, but over say over 20 yrs you could see multiple fluctuations, and take advantage of opportunities to go between the 2 metals.

  13. Yes yes yes, homerun! I have never understood why the GSR is considered to be an indicator to buy or sell. These items are not self leveling. That is illogical, rather when times are bad people gravitate to Safehaven purchases. e.g. precious metals, the common man buys silver, the rich man buys gold. It is the influence of events throughout the world that determine the value of these commodities. There is no natural law, that states the GSR is to be 15 to 1 or 150 to 1, just my two cents.

  14. I agree, when silver went to almost $50 industry was bailed out so silver was still in high demand. and a closer ratio to gold. Now silver is abundant and industry down from what I can see. Gold is hoarded mainly as a store of wealth. But there is plenty of Gold now also from what I can see. There are buyers but as prices rise just as many or more sellers. I see more roller coater rides this year. Buy on the dips.

  15. The big part missing here is TIMING. I agree that gold will likely outperform silver over the short to medium term. However, the ratio has worked over a long horizon in the past. No one knows when the metals will take off again, but when they do, silver will likely outperform.

  16. Agreed. Normally, silver would exhibit significant relative strength to gold in the final phase of the gold bull market. As far as I am aware, we are not in the final phase of any gold bull market which is reflected in comparatively high current G/S ratio. I would therefore conclude any outperformance of silver relative to gold in the shorter term (say, less than 3-4 years) is unlikely. Investors should be wary about favourable reports on buying silver (for short term speculation) because the current G/S ratio is historically high.

  17. Silver is stair stepping it's way up. all I need is $21 Silver to get my 40% rise in 2016. I already got my 20% Gold. it has been my belief that the "utility" of Silver will maintain a resistance to allowing Silver to rise compared to gold because Gold is not as much an integral part of the products it is used in. Also even a doubling in the price of gold would not change the cost of say a stick of computer RAM very much since so little is used anyway. based on a scrapper who foolishly scrapped 160 RAM sticks for the gold foil on the connections and got .8 grams of Gold which is about 1/40th a Troy ounce. so doing a little math you get this equation for the cost of that Gold at today's prices of about $1250/160/40. very low low low value and therefore doubling it wouldn't add more than a buck or two to the cost. On the other hand Silver that is used in greater volume in some products would see a significant cost of production rise but admittedly not high enough to discount it happening. after all Capitalism doesn't care how needed or useful something is. the cost of the ingredients in life saving drugs can be cheap but that won't stop them from charging you as much as possible, even if it kills a few people, if it still leaves enough live customers to pay the higher cost and greater profit margin. the ultimate question, in relation to a commodities utility is not how important it is to the consumer but how much the producer can gouge the consumer for. that's how 20¢ in corn becomes $3 of cereal.

    and given that the same 1% controls most if not all markets from digging the silver out to selling it in a product means that competition between suppliers in relation to producers that consumers can rely on to keep the cost of something down does not exist which means the utility of a commodity means dick in a rigged market paradigm.

    Silver will probably jump again today and continue to move up for the rest of the year bouncing back and forth. there is no philosophical or logical reason to forecast anything. reason and logic are not relevant in a Predatory capitalist paradigm.

    have a good day.

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