I hadn’t even noticed as the US dollar crept up to $1.055 which is the current official exchange rate. Of course, actual – say, charged by the credit card companies – is closer to $1.08.

I own a couple of bars minted by Valcambi (via Scotiabank). I used to think that all gold bars were minted by Credit Suisse 🙂

Valcambi have a few interesting charts on their Charts page. Here’s one:

DOW - Gold Ratio chart

1-5 DOW/Gold ratio can be achieved in two ways: either gold will go up, or the DOW will drop.

I’m betting on gold going higher. Crazy as it sounds, I believe there’s going to be a major war in a year or three. There, I said it.

EDIT: Here’s an even longer-term chart from elsewhere. Not sure what technical scenario applies here. Does every new peak exceed the previous? or will it only work 3 times and the pattern will change? More questions than answers, sorry.

dow_gold_ratio_long_term_chart_1900-20121

I got 2 answers in the comments – thank you both for participating.

El Guapo said $425, and llman – $325. llman, you’re a pessimist!

I probably look naive or something, ’cause after seriously intense calculations, my “handler” looked me straight in the eye and said:

$400 even.
 

Having done my own math, I questioned that number. Also got a little mad, but spoke very calmly.

They have screens with live spot quotes all around, and use Buying and Selling prices, like with the currencies. At the time Buying price in CAD$ was $34.52.*

I showed her my logic on the calculator. Including their commission, my net came to $436, but she couldn’t let me have it and rounded down to $430. If it was a bigger amount, I would’ve questioned it, but ok… whatever.

The answer: $430.

5-12% of silver is lost during smelting so I figure they made about $70-120 on this transaction.

* Selling price was around $38.40.

I had some silver laying around and thought I’d do something with it. So I split everything into piles and took it to the refinery this morning.

  • sterling silver rings and settings, 312g
  • sterling wire scrap from my heady days of jewelry making, 101g
  • sterling jewelry with inset enamel, 104g

Total weight – approximately 517g

I really didn’t have to break it up like this. You might have to do it if you take your metal to one of the trading/middleman places.

But I went directly to a refinery. They melt everything together, to avoid checking each piece individually and then they measure the purity of this combined bar.

My stuff being weighed

Without plastic bags and a couple of magnetic pieces, total weight came to 511g. After melting, I got a 501g bar with 93.52% purity (higher than sterling because I had some 99% wire in there).

Pouring my bar. The whole melting process took 3-5 minutes at most.

How much $$$ do you think I should’ve gotten? Answer tomorrow! 🙂

Precious Metals Spot Prices

silver spot price, gold spot price, platinum spot price, palladium spot price

Here’s a 3-year daily chart showing that even when the U.S. dollar went up temporarily, the gold kept creeping higher. It’s in a bull market, you see.

And check out the lines I drew. Price is in an uptrending channel, and has room to run.

I won’t be making any claims as to the extent of the up move in precious metals. Just watching the currency policies in the U.S. and reserve the right to change my opinion at any time.

In the chart: $USD US Dollar index, GLD gold ETF. Black line is GLD.
Click to enlarge