Anyone else notice how silver price is dragging gold higher

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Dusty Roads

New Member
Hi all, I 've noticed that over the last few sessions that silver has not followed the usual pattern price wise , in relation to the gold price. Gold starting out in the red , silver in the green and staying there while gold ends up green or close to it. Silver looks pretty strong here at the moment, I get the sense that it will make a break out of this high twenties and run quickly up to $22 levels. Might be wrong but I am very encouraged by what I am seeing at the moment, Thursday USA time might be the catalyst for a jump higher with gold tagging along for the ride.
 
Yeah I've noticed the seperation in the gold and silver ration. Went from 67.34 to 62.37 in nearly a month. Just recently it started to close the gap a very tiny bit with gold jumping up a small amount.
 
Even on the multi decades prices trend, you see how golds price is like driven by silvers. I created a topic for it somewhile ago. Especially around the biggest price changes, this catches the eye. 1979: silvers highest average. 1980: golds highest average. 2011: silvers highest average. 2012: golds highest average.
I think gold is purposely "supported" by central banks when its price trend appears weaker than silvers. Put all data together, you see a certain order of things recurring. First they buy silver, then silvers peak, then they swap to gold, silver drop & gold peak, helped by central banks, then central banks sell more / buy less, golds price drops too.
Don't just look at prices. Look what is behind them. This last price uptrend resulted in / or was caused by a huge increase in the futures market hedging total position. The absolute amount is not that exceptional, but the amount per price dollar is. About 2-3 times the highest seen before.
Since 99% (that's an official figure I found in a book of 2005) of the Comex contracts does NOT end in delivery of the underlying, it means that this price increase is as bogus as hell. It's an attempt to trigger a double multiyear top. I won't buy in it.
Back in 2009-2010, there was some real ground under the price trend. ETF's bought hundreds of Moz silver. Since 3 years, they ceased to add more. Yet, all that silver stock still sits there, and will be sold. A half annual world supply/demand is alot.
The gold ETF's already sold alot, last year 2013. About 50% of their entire stock. Silver so far not. I don't see any real reason for silvers price to be driven even higher. Last wednesday Comex position was 43000 at $20.67. It's now probably 50000 or so. The highest ever was 75000-80000. Such a further increase could add a couple dollars. Whether they'll do it or not, will depend on whether or not people hammer their sell buttons to flood dealers with silver.
The only real driver for the silver price is other prices. General inflation. As long as that doesn't go to 5 or 10% annually, it's profit, and it's taken. Usually first by market arbitrators. Those that bring the futures/forward price towards the spot price. :P
 
I feel at this stage with all the QE, central banks thinking that they are God so to speak and the massive fraud being used to inflate every other asset, house prices, stock market etc that we are in uncharted waters . I think...... Sense......common ......is not so "common" after all. call it a gut feeling or whatever , but I think you can throw out the rule book, price charts, historic data etc we have never been "HERE" before. So I will continue to stack as long as I can afford too at current price levels. This corrupt system has got to end , the sooner the better for all of us.
 
Succesful speculation is what brings that corrupt system to an end.
So actually, those that want to see it ending, have to make better purchase/sale and product decisions.
 
Pirocco said:
Succesful speculation is what brings that corrupt system to an end.
So actually, those that want to see it ending, have to make better purchase/sale and product decisions.
Click to expand...

When you say better decisions, do you mean better than being made by the person the comment is directed to, or the others not in the know?
 
FORUM: A place for open discussion. We all read this forum to communicate with like minded people. We all have our reasons for stacking pms, some buy and sell, others stack for when the shit hits the fan. Some work off the gold silver ratios etc etc . Which ever one you are you make decisions based on your personal circumstances . I wish you all well.
 
Dusty Roads said:
FORUM: A place for open discussion. We all read this forum to communicate with like minded people. We all have our reasons for stacking pms, some buy and sell, others stack for when the shit hits the fan. Some work off the gold silver ratios etc etc . Which ever one you are you make decisions based on your personal circumstances . I wish you all well.
Click to expand...
FORUM: A place where those that argue the most and make the longest posts must be correct
 
sammysilver said:
Pirocco said:
Succesful speculation is what brings that corrupt system to an end.
So actually, those that want to see it ending, have to make better purchase/sale and product decisions.
Click to expand...

When you say better decisions, do you mean better than being made by the person the comment is directed to, or the others not in the know?
Click to expand...
Do you see any person-specification or selection in my sentence? No?
If we want to bring the corrupt system to an end, we have to avoid the prices driven up by that corrupt system. And bring others 'to the know', if needed.
The corrupt system tries to 'milk' us along more ways than just their fiatcurrencies, right?
That whole central planned 'system' we talk about here, is geared towards fighting speculators. Just read any (macro) economical book. If we dump their fiatcurrency X for fiatcurrency Y, they sell Y to buy X, the opposite, as to 'undo' our attempt to punish X in favor of Y. Fighting speculation is why they 'harmonize' taxes; why they 'regulate', manipulate intrest rates and precious metal prices, or more general, prices of anything we try to use as money.
So, those that want to see an end to this system, all together, have to make better speculative decisions. The entities of the corrupt system work together against us. What should we do?
 
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