Silver Takes A Back Seat

Instead of slavishly following the price of gold in its usual historic way, silver has taken a back seat in the last few weeks.

As has been oft repeated on these pages, the gold/silver ratio has averaged well below 60 in earlier times and, for about the last year or so has wavered around 65 and encouragingly been declining as both metals reached new highs, in silver’s case for the last twenty years and longer.

Now we see the ratio at over seventy despite gold holding its own so what is going on? Read more

Silver To Fly To the Moon?

Much has been written about silver in the last few days that if only half factual should as good as guarantee that silver price will fly to the moon before very long.

We read, for example, that about five billion ounces of gold-silver-set/”>gold is present above ground in the world with a value today of circa five trillion US dollars whereas today there is only one billion ounces of silver left worth only circa seventeen billion US dollars. Read more

How To Profit From The Gold/Silver Ratio

In the last week the gold / silver ratio has gone from above 71 to around 68, still historically high. At the same time the gold price has yo-yoed between a high of $959 and a low of below $927 an ounce before closing out on Friday at $954 an ounce.

While all this was happening silver was mirroring the performance of gold, with a slight delay, as the price of gold ebbed and flowed. Significantly though, at each daily close, silver’s gain or loss in percentage terms was always greater than its more expensive bedmate and this opens up opportunities to trade silver profitably. Read more

Does the Rally in Gold Reflect the End of a Bear Market Bounce?

Looks like the recent rally in stocks is over as markets react to gloomy forecasts for the current earnings season reports, kicked off by Alcoa (AA) worse than forecast losses for the quarter.

Tuesday’s New York close saw spot gold rally to $884 an ounce a rise of $12 from the open. Wednesday’s Asian trading sustained the rise while at 10am GMT in Europe the price had risen to $888 an ounce.

To us, this rally in gold reflects the end of the bear market bounce we have been witnessing during the last week or so. Read more