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IMO, gold:silver ratios over 40:1 or so are a relatively new thing that was mostly caused by the demonetization of silver by the US. The chart below looks really rigged and unnatural. Also, read the text below about antique gold:silver ratios.

 

Gold-Silver-Ratio.png

 

gsratiohistoricat0.png

w840.png

Taken from: The Ages of Gold, Timothy Green, GFMS Limited, London

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IMO, gold:silver ratios over 40:1 or so are a relatively new thing that was mostly caused by the demonetization of silver by the US. The chart below looks really rigged and unnatural. Also, read the text below about antique gold:silver ratios.

 

It's changed a bit since 1300BC then !

 

Personally I think silver deserves a better 'reputation'.

 

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RH, see this post:

http://www.greenenergyinvestors.com/index....ost&p=69640 :blink: :blink:

 

IMO coins are better. They are the only thing that offer smallish value for total worldwide financial collapse :D

But, bars are more compact.

So I would suggest some of each.

 

Hi Steve,

 

Yes, I think a combo of bars and coins would be good. Diversity and all that. :)

 

I see what you mean about the packaging. :blink:

 

I was hoping that they would come in "rolls". They way they are packaged would be absolutely awful for storage.

 

http://www.trademe.co.nz/Antiques-collecta...n-182864327.htm

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Thanks for the Charts, Ker. Always nice to see them with your comments. I'm actually hoping silver will drop more in the next few weeks as I'm waiting to buy.

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silver1019-4hrs.png

 

$9.81 now, lets see where it ends the day....

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Those frickin' graphs are breaking my heart. Can't you upload 'em upside down or something?

Maybe British Bulls' view that a "bullish pattern has developed" might cheer you up: http://www.britishbulls.com/StockPage.asp?CompanyTicker=PHAG

 

...admittedly, it's quite weak, but the next few days will be quite telling from a TA perspective.

 

Personally I'm out of trading silver until (even in tiny portions) after the elections... just too darn volatile for my liking.

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silver has gone into backwardation today.

 

Dec Comex silver is trading 5 cents UNDER spot physical London delivery.

 

Does that suggest the price will explode upwards?

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silver has gone into backwardation today.

 

Dec Comex silver is trading 5 cents UNDER spot physical London delivery.

You're right. Well spotted.

 

I'm only a simpleton, but in my mind there could be two causes of this:

1) There are short-term shortages.

2) Silver lease rates are running higher than cash interest rates, meaning the yield on silver is higher than cash, ergo the "interest rate differential" is driving the futures price in the same way it does for a currency pair where one currency provides a higher yield (IR) than the other.

 

But I'd gladly welcome input from someone with more insight.... It appears backwardation isn't hugely uncommon according to: http://www.gold.org/assets/file/rs_archive...ckwardation.pdf

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typically, a backwardated market is accompanied by a rising spot price but not always. but the mere perception that something is afoot should see silver outperform gold in the short term. the commodity complex on the whole is due something of a bounce with credit concerns abating and silver ought to benefit more from this. but i wouldn't bet against the greater trend of silver underperformance reasserting itself soon.

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But I'd gladly welcome input from someone with more insight.... It appears backwardation isn't hugely uncommon according to: http://www.gold.org/assets/file/rs_archive...ckwardation.pdf

 

I was looking through the report and came across the image below. It appears to say that it is very rare for Gold & Silver, also that it is very common for platinum.

 

goldreport.jpg

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I was looking through the report and came across the image below. It appears to say that it is very rare for Gold & Silver, also that it is very common for platinum.

...

Hmm. Maybe the reason is that you can't build catalysts using paper platinum? :lol: Strangely enough, many investors are happy with paper gold.

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Gold also went into Backwardation for a short while today. Maybe we shall get a nice upleg from here.

Given the premiums in the retail markets especially in silver, it only makes sense. James Turk predicted this a long time ago. People want their bullion NOW, not tomorrow, trusting some shady promise of a bank or hedge fund.

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Well, I'll say this for them, those popups are distracting me from Ker's charts a bit.

They are frustrating. My eyes are too young and delicate for that sort of thing. $6 silver! :o The popups are nice on the other hand :P

 

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They are frustrating. My eyes are too young and delicate for that sort of thing. $6 silver! :o The popups are nice on the other hand :P

 

Check this quote from - Understanding Derivatives to Understand the Credit Crisis: http://www.marketoracle.co.uk/Article6890.html

 

In the case of precious metals pricing today; the cost of procuring physical precious metal has radically decoupled from the fraudulently derived futures price of the same. In a conversation I had with one of Canada's largest physical, retail bullion dealers last Friday – here's a summary of what he told me:

 

As a long time and valued customer of the Royal Canadian Mint, he has been told that the Mint is not accepting ANY orders for gold or silver coin for at least 3 months – and no guarantees then either.

 

Gold:

 

- There are zero one ounce gold bars in North America at wholesale – period.

 

- Same thing for 10 oz gold bars.

 

- Some kilo gold bars are available at wholesale but in highly limited supply at prices starting at 5% over spot [COMEX price].

 

- He is currently receiving a couple of hundred calls per day for small gold [one ounce denominations] and has no product to sell.

 

Silver:

 

- He told me there are ZERO one thousand ounce bars available at wholesale in the U.S.A and `supply of the same in Canada is HIGHLY limited.

 

- He laughed when I mentioned that there was supply at COMEX and he told me COMEX was a JOKE. He told me he doesn't price silver using COMEX [silver futures prices] any more – he looks at prices being paid on E-Bay instead.

 

- He is currently getting 50 calls a day for silver and has no product to sell.

 

Comex needs taking down! Buying (into) 1000oz silver bars through Goldmoney looks like a massive bargain at the mo'.

 

 

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