Something strange has been happening in precious metals lately. Gold has been doing a lot better than silver, even as the paper market internals have increasingly predicted the opposite. The result is a gold/silver ratio that’s near the top of its historic range:
In the paper markets (where futures contracts are traded) the imbalance is even more glaring, with gold speculators extremely bullish (which normally leads to a price decline) and silver speculators hyper-bearish (which normally leads to a big rise).
Based on the gold/silver ratio one would expect silver to do better than gold even if both are rising. And based on the COT report, gold should fall while silver rises. Today the metals finally started to behave this way, with silver rising and gold falling.
One day, of course, does not a trend make. It’s just interesting to see precious metals behaving logically for a change.
10 thoughts on "Silver Finally Starts To Catch Up With Gold"
Ya know John, I used to be able to apply my knowledge and skills to consistently make money in the metals and mining share / royalty co markets … mostly via a regular options selling and spreads trading program.
Now, I’m reduced to spectating and saying WTF every single day it seems.
We’re not just in uncharted territory with all the blatant interventionism, we’re in the twilight zone. How this ends is anybody’s GUESS.
Through it all, you maintain a calm sanity. Appreciate you very much. You da man.
WHAT? Break out…? Hardly.
need 18.22 to get out of 500k of slv
Is that a break even or solid profit target?
break even, because its all Paper like bitpaper
I always enjoy getting your update emails, thanks for keeping it real!
Thanks rocmon!