May 25, 6:00 pm
The natural ratio of the occurrence of silver to gold in the ground is typically estimated at roughly nine ounces of silver to one ounce of gold, and yet the recent trading price ratio of 62 to one is almost seven times higher.
After contemplating this curious anomaly, one is left wondering if comparisons between gold and silver may be as fruitful as comparing silver investment demand and silver industrial demand.
May 25, 5:55 pm
So is silver cheap at the moment? One measure is the number of ounces of silver you need to buy an ounce of gold. It is almost 62 at the moment compared with around 50 earlier this year. That means you are getting a 20 per cent additional discount on silver on top of the $500 you are getting off gold’s recent all-time high.
May 24, 3:36 pm
COT Silver Report - May 24, 2013
Przemyslaw Radomski,
May 24, 3:01 pm
Summing up, the situation on the silver market does not look all that bullish. The cyclical turning point suggests a bottom in a week or so but we feel a need to see this confirmed by other markets. Placing our trust in this tool alone does not seem sufficient at this time. Even though we see divergences between many indices and particular mining stocks and main technical indicators, they only support the claim that the final bottom is about to form, but give no direct clues as to when exactly it is going to be formed. Here, the self-similar patterns seem more reliable and the best idea in our opinion is to wait for more decisive signals.
May 24, 12:23 pm
A subscriber recently commented that the Oligarchs who rule Russia only wish they got to run things as efficiently as how JPMorgan and the big banks control our financial markets, particularly in the trading of precious metals. Based upon the last few days, it’s hard to argue with that. On Sunday evening shortly after 6 PM, the price of silver was taken down 10% within a few minutes on an insignificant number of contracts (1600), evoking memories of the infamous 13% ($6) decline on the May 1 Sunday evening of 2011. If the Russian criminals oversaw silver trading and not the CME Group and the CFTC they could not possibly have rigged prices more corruptly.
May 24, 12:10 pm
Silver has suffered horrendously in 2013’s opening months, plunging dramatically to miserable lows. This exceptional weakness has naturally kindled extreme bearishness. Predictions abound for silver to continue selling off indefinitely. But amidst this severe carnage, the silver bullion held by the flagship silver ETF has remained flat. This is an extraordinary bullish divergence in the face of rotten sentiment.
May 24, 10:54 am
In terms of silver’s investment demand, the bullish metric at Sentimenttrader.com is currently at 39 percent. This is a low point that has not been seen since the mid-1990's.
Furthermore, The Hulbert Gold Stock Newsletter Index or HGNSI recently fell to a new low of 43.8 percent, which is a record by a longshot. What that low reading indicates is that, of the stock newsletters that include coverage of mining stocks, 43.8 percent of them are now recommending short positions in gold stocks.
The Gold Report and Maria Smirnova,
May 22, 4:03 pm
Sprott Silver Equities Class Co-Manager Maria Smirnova understands the power of leverage. She has seen the big impact even a slight increase in the silver price can have on silver producers. Every cent is multiplied and goes right to the investor's bottom line, giving the equities more upside than possible in a coin. That is why Eric Sprott increased holdings of silver equities in certain Sprott funds, as explained in this interview.
Steve St. Angelo, SRSrocco Report,
May 21, 5:15 pm
Martin Armstrong stated in his blog Post that the reason for the "flash crash" in silver on Sunday night, May 19, was due to the lack of bids. He goes on further to say "Despite the gold/silver promoters, there is no expansion of buyers for the precious metals. It has been the same choir over and over again."
May 21, 1:11 pm
This has been one of the worst stretches for gold and silver pricewise in quite some time, no secret there. I have to go back to when silver was in single digits to find a comparable period. The question on precious metals investors’ minds is whether this bad stretch is going to continue much longer. Are the past few months setting the stage for a pronounced rebound in prices or has the tide changed for the worse for an extended period of time? I think the answer can be found in analyzing the following facts.
6:00 pm Gold Silver Ratio Redux