Gold-Silver Ratio Goes Ballistic

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Fed spooks markets again; damage could be shortlived


3 Comments for “Gold-Silver Ratio Goes Ballistic”

  1. GDXJ in 2 years is lower or even at best versus the Nasdaq.

  2. Yea , yea, you were calling this Gold stocks story 4 years ago, and now you say the next 2 years.
    Gold Stocks are the worst stocks. Admit it and leave the repetitive crap.

  3. In June 2010 the gold silver ratio was 65 and Bob’s charts were telling him that this could rise significantly due to post credit crunch contraction. In order to realise gold gains at low tax rates, I converted 80% of goldmoney holdings form gold to silver when silver was $19 in June 2010. I hesitated due to Bob’s trend forecasts, but sold gold and bought silver. This was probably one of the best decisions that I have made and with the ratio at 50, even after silver has almost halved in price this year, it shows that there must have been a serious distortion in the silver price discovery mechanism, not identified by Bob’s charts.

    The reason’s for silver’s take downs is usually reported by Bob to be that silver is an industrial, not a financial metal. However, I do not understand why …..
    1. 100% industrial metals never fall as far or fast as silver – therefore the explanation that this is a plausible reason for falls of the order of 25% in silver, does not appear to be logical.
    2. The US mint is having difficulty in sourcing silver from 100% of US silver mines – which also detracts from the industrial metal arguments.
    3. It is generally agreed that silver uses are inelastic in industry and would not therefore be inhibited by higher prices.

    In summary, its seems that investors need to taker more account of what the CME & CFTC’s actions are when forecasting future silver prices.

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