US Debt Clock’s Dollar to Gold and Silver Ratios vs Our Debt to Gold Numbers

Prices and Charts

Change from last weeks gold and silver prices


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Buying Back 1oz NZ Gold 9999 Purity $2351
Buying Back 1kg NZ Silver 999 Purity $1066

Gold Dipping as Expected

As we warned it might last week, gold in New Zealand dollars fell this week. Dipping to “back fill” the sharp gap up higher that occurred the week before. As a result gold is down over 2% from 7 days ago. We’d say the odds still favour the bottom being in. But we could see gold dip lower to retest the horizontal support line.

Whatever happens this area is likely to be a very good long term buying area.

NZ Dollar Gold Chart

Silver Down 4%

Silver was down double that of gold. Dropping below the rising blue trendline and below the 200 day moving average.

Now we are watching to see if silver can hold above the horizontal support line at $34.

But like gold our guess is that anything in this region is likely to be very good buying in the long run.

NZ Dollar Silver Chart

NZ Dollar Little Changed After Previous Week’s Plunge

For a change, there has been little change in the Kiwi dollar. It’s down just 6 basis points from a week ago. It is still sharply below the uptrend line from a year ago. We could yet see it dip lower to the 200 day moving average. It remains to be seen as to whether this is a reversal of the uptrend or just a pause.

NZ Dollar Chart

Need Help Understanding the Charts?

Check out this post if any of the terms we use when discussing the gold, silver and NZ Dollar charts are unknown to you:

Gold and Silver Technical Analysis: The Ultimate Beginners Guide

Continues below


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How Much Might Gold Fall in the Next Crash?

There have been a few wobbles in global share markets lately. But so far nothing too significant. There are some wondering about the chance of a stock market crash.

That could be what prompted this question from a reader earlier this month.

“What might you imagine the % drop in the gold price might be after the next crash?”

Here’s what we cover in our answer:

  • Why Does Gold Fall During a Stock Market Crash?
  • How Much Has Gold Fallen in Previous Crashes?
  • What Percentage Might Gold Fall in the Next Crash?
  • Other Factors to Consider
    • What If Gold Had Already Fallen?
    • Central Bank and Government Response Gets Bigger Every Crash
    • We Need to Consider Premiums Too

How Much Might Gold Fall in the Next Crash?

 

Your Questions Wanted

Remember, if you’ve got a specific question, be sure to send it in to be in the running for a 1oz silver coin.

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US Debt Clock’s Dollar to Gold and Silver Ratios are Much Higher Than Our Debt to Gold Numbers From Last Week. Why?

Last week’s article, How Much is All the Gold in the World Worth?, prompted a couple of questions.

In that we compared the value of the estimated total gold ever mined in the world to the current total debt.

Reader RL then asked:

“When I checked last time this US debt clock (AD 2021/ February ) was
> 4 500$ / oz silver
>35 000 $ /oz gold
How much should the price of gold and silver be then?”

Yes the US debt clock numbers are a bit different. (See the US Debt Clock here)

US Debt Clock dollar to gold and silver ratios

They are based upon currency supply – US M2. And also based upon 100% gold backing. So that is the year over year increase in the US money supply divided by the yearly world gold production:

US Debt Clock dollar to gold ratio definition

Whereas the numbers in last week’s article were for global debt versus all the gold ever mined. Plus they were also only based upon a 25% gold backing of this debt. The post we linked to was referring to US debt to gold ratios and the fact the gold price rose high enough in 1933 and 1980 to achieve a 25% backing of the debt.

We said gold would need to rise 7 times to achieve a 25% backing of global debt. So if we were to use a 100% gold backing of the global debt numbers then we would also get a similarly very high number.

i.e. 7 x 4 (as we need to multiply our number by 4 to go from 25% to 100% gold backing) = 28

Or $10 trillion worth of gold at current prices versus 281 trillion debt (i.e. a 28 times increase in gold price would be needed).

28 x $1,743.66 = $48,822.48

However, in past history the debt to gold ratio has only reached 25% gold backing.

But to be honest we just used the global debt as an indicator that gold is undervalued. We would not use this as the most accurate assessment. Why?

Simply because all the gold in the world ever mined is based upon an estimate only. Whereas US govt gold reserves are an actual figure (assuming they do still have it all of course!). So that would be a better figure to base any debt to gold ratio calculations off.

For more on this topic see: How Do You Value Gold – What Price Could Gold Reach?

All these numbers are of course just estimates of the potential value for gold. Our guess is it is much higher than today but who knows where exactly.

Buying anywhere near current levels is likely to be very good buying in the long run. We still think precious metals have likely bottomed out. Or if they haven’t, there is very little downside here compared to upside.

Silver Maple, Krugerrand and Britannia 1 oz silver coins are now back in stock.

Get in touch if you have any questions about buying or to request a quote…

 
  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Shop Online with indicative pricing

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This Weeks Articles:

How Much Might Gold Fall in the Next Crash?

Wed, 31 Mar 2021 1:28 PM NZST

Here’s something you might have wondered about as well… How much might gold fall during the next crash? A question recently from a reader Brett was: “What might you imagine the % drop in the gold price might be after the next crash?” Why Does Gold Fall During a Stock Market Crash? Firstly though, why […]

The post How Much Might Gold Fall in the Next Crash? appeared first on Gold Survival Guide.

  Read More…

Better to Buy Gold by the Ounce or the Gram?

Wed, 24 Mar 2021 11:13 PM NZST

Prices and Charts Looking to sell your gold and silver? Visit this page for more information Buying Back 1oz NZ Gold 9999 Purity $2408 Buying Back 1kg NZ Silver 999 Purity $1113 NZD Gold Spikes $40 Overnight Gold in New Zealand dollars spiked over $40 higher last night, due to a sharply weaker Kiwi dollar. […]

The post Better to Buy Gold by the Ounce or the Gram? appeared first on Gold Survival Guide.

  Read More…

How Much is All the Gold in the World Worth?

Tue, 23 Mar 2021 4:42 PM NZST

Here’s a question in this week from a reader: “How many US dollars is all the gold in the world worth?” How Do You Calculate the Total Value of All the Gold in the World? First we need to know what is the total amount of gold in the world. Then we simply multiply that […]

The post How Much is All the Gold in the World Worth? appeared first on Gold Survival Guide.

  Read More…

Website Visitors: Another Contrarian Buying Indicator

Wed, 17 Mar 2021 7:14 AM NZST

This Weeks Articles: Prices and Charts Looking to sell your gold and silver? Visit this page for more information Buying Back 1oz NZ Gold 9999 Purity $2319 Buying Back 1kg NZ Silver 999 Purity $1120 Gold Up Just Under 1% From a Week Ago Gold in New Zealand dollars is up 0.74% from 7 days […]

The post Website Visitors: Another Contrarian Buying Indicator appeared first on Gold Survival Guide.

  Read More…

As always we are happy to answer any questions you have about buying gold or silver. In fact, we encourage them, as it often gives us something to write about. So if you have any get in touch.

  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Online order form with indicative pricing


7 Reasons to Buy Gold & Silver via GoldSurvivalGuide

Today’s Prices to Buy
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1oz NZ Gold Ingot
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1kg “Scottsdale Gold” Bar 99.99% with unique serial number

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1oz 2020 Royal Australian Mint 99.99% Gold Coin

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1oz Canadian Gold Maple 99.99% pure gold coin (2020)
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Have a golden week!

David (and Glenn)
GoldSurvivalGuide.co.nz
Ph: 0800 888 465
From outside NZ: +64 9 281 3898
email: orders@goldsurvivalguide.co.nz

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The Legal stuff – Disclaimer:
We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.

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2 thoughts on “US Debt Clock’s Dollar to Gold and Silver Ratios vs Our Debt to Gold Numbers

  1. Pingback: Gold or Silver? Higher or Lower? - Gold Survival Guide

  2. Pingback: Will Biden's Tax Increases Mean No Inflation? - Gold Survival Guide

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