What happened to all the "China & Russia will challenge the petro dollar" stories? Now its all doom and gloom.
Did you miss them? They're still out there, being pasted all over the place including this forum. The doom and gloom will disappear once the wrcmads in the world "got out" lol. Then everything will repeat, but inverted. Dollar on multiyear high. Implictly euro the same low. PM's on multiyear lows. Still, the silver stocks (SLV, coin sales) are still there and high, so situation isn't like in 2008, and the futures hedge is 35K or so, a relative high figure in a bear market, so I decided to wait despite those extremes. Silver target now low $13's. Gold still sits well above $1000. Central banks are still net buying gold, and still in a substantial degree. Will hold what I have. Will have patience to add further. Regardless all the doom and gloom. Instead I look at the figures. It's coming a little later but way more reality than the doom and gloom stories. What they do themselves, versus what they tell others to do. And I'm not in a freezed mode. If I see reason to reconsider, I'll do so. But as it looks like now, and even if the price would be driven $10 higher again, so what, I'll just wait it out, to add my next batch silver coins after it. The only true game changer is a general price increasing, which lifts up the $levels to a new range.
It's nice to see I've made such an impression on you Pirocco. Some of us take responsibility for our decisions. Others need to blame everyone else....
If you find it nice to be recognized like that, why then making a rolling eyes problem of it? Check this threads post #5 http://forums.silverstackers.com/message-753750.html#p753750 I could have said "the John Paulsons in the world" too. I just take what is in front of me at the time, so good timing?
Well then... what's the takeaway from this news about the performance of gold vs. world currencies? I'm still focused on accumulating silver. Is this a bad strategy?
The big question. Is silver FAILING against the other precious metals, most importantly gold, or is silver just going through a temporary devaluation against other metals? Will the Gold:Silver ratio revert to a more historically normal number or has something fundamentally changed in the 'relationship'? My conviction is has been shattered by price. I've never recovered from the break of major support levels for silver. Put it down to flimsy understanding of the fundamentals really. Got too many second and third hand opinions about silver. Adopted the arguments of the honest sounding experts. No primary research.
Not really, just talking about averaging up and not down....been said a million times so.... on second thoughts...not worth posting.
One may wonder why people make such a story about a X to Y price ratio. I can think of an easy explanation: they swap. Abit like milking cow Dora then milking cow Lonnie then back milking cow Dora. A price ratio only has a fundamental if the production and/or consumption (actual consumption) of both is linked in a serious degree. That miners and recyclers thus produce ratio-wise same amounts gold and silver. I don't have most data to base a conclusion on, but from what I've seen, it doesn't look like to be the case. Without "fundamental", the sole relationship is a milking based one. Meaning that if the by the gsr swappers targeted profit fails, the swapping will decrease, as to come to a more stable price ratio. Decades spanning data, and also quite alot individual short periods data shows a recurring sequence: first silver peak, then gold peak, then both down. I remember from 2011, at silvers $49 peak, that in the very beginning silver tumbled down while gold had a short upspike. This may have been caused by people that swapped silver to gold. The first reinforces the price drop of silver, the latter made gold temporarly go even in the opposite direction. Another example mid april 2013, the tumble from $27 to $22. The ASE sales figure just increased further at the rate it increased before. But the AGE and AGB sales went up like a rocket from that 16 april, and the month ended as a common ASE but exceptional AGE+AGB, nearly 250,000 ounces. The same at the other end of the price trend. Historical GSR figures are useless because the laws that dictated them are no more. All there is is a production ratio, but due to stockratio gold:silver being way lower than the price ratio, its impact on the price is quite low. An explanation for the current ratio that I see is this one: (eastern ones haha) central banks still net buy gold. If/when they revert to selling, the ratio will probably return to some average (over 2004-2014 it was 56. It's now 75.
I've noticed that, a dozen posts with 'I bought this and that silver'. Including the milk spotted Lunar Goat kilocoin(s). People that are focussed are concentrated. People that are concentrated usually do the job better. So I'd say keep accumulating the milk spots.
thought I should point out the obvious that you seemed to have missed GOLD and SILVER are not Currencies any more and have not been for a long time now.
