7 votes

Is Silver Breaking Away From Gold?

I've been watching the price charts for silver and gold on kitco.com for probably 5 years or so now - at least since gold broke through $1000/oz.

One thing I've always, always noticed is that the price, in terms of U.S. dollars, for silver or for gold, has always more or less moved in tandem. What I mean is that if you were to look at the price for gold for any one day, and the price for silver for that same day, they were basically the same chart.

That all changed on wednesday.

Maybe I'm projecting. Maybe I'm seeing what I want to see, what I've been waiting and watching for for a darn long time.

See, I only own a little bit of silver myself, and luckily I was able to convince some close family members to get into gold for their big bucks and silver for some small transaction usages...

Before I could do this convincing I had to learn a lot, and one major thing I learned about was how the price of silver in terms of gold, and the price of gold in terms of silver, had been historically at one level, but lately it had been at another level.

Silver has been cheap, in terms of how many ounces you could buy with an ounce of gold, compared with what it was in the past.

The gold to silver ratio has been amazingly historically low at a rate of about 1 ounce of gold at $1700 able to buy you about 50 ounces of silver at $34 per ounce.

The charts show this ratio breaking up in the last 2 days, the first time it has gone for more than one day in a row in my recent memory:

kitco.com

Silver is going up and staying up, gold is going down and either staying down or not recovering. The ratio is breaking up. An ounce of gold will now buy 48, 47, even only 46 ounces of silver.

Is this huge or am I nuts?

We'll see what friday brings.

Monday.

Tuesday...



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Friday Oct 25...

Gold steady all day, ends up $5.60 at 1352.90,
Silver down all day, ends down 12 cents at 22.60

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Didn't realize this was an old thread until now...

I was just about to say "what??" Then, I realized this post is from last year. Currently, silver has fallen behind a bit. 1 oz of gold could buy you 46 oz of silver in August of 2011, now 1 oz of gold will buy you 59 oz of silver.

Hedge your bets

Buy both Ag and Au . . . on the dips. ; )

the Silver to Gold Sales Ratio the past few months has been

extreme with 100's more ounces of silver eagles sold per one ounce of gold sold at the US mint http://www.dailypaul.com/300895/silver-out-sells-gold-364-to...

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Last friday, 10-4, gold was down slightly and silver was up...

according to www.kitco.com .

Today, 10-7 gold was up around .6% and silver was up around 2%.

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Cyril's picture

Silver to Gold Ratio Historical Timeline, Visually: 1883 to 2009

Silver to Gold Ratio Historical Timeline, Visually (Animated) : from 1883 to 2009

There :

http://www.dailypaul.com/283486

Check out the milestones, at times of crises vs. (relative) peace.

'HTH,

"Cyril" pronounced "see real". I code stuff.

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August 13 gold down, 3: Silver up...

August 14: Gold up 1%, Silver up 2%

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fireant's picture

Historically, it's been all over the board. 36 year chart:

36 year gold silver ratio
Source: http://goldprice.org/gold-silver-ratio.html
From here it's anyone's guess which way it trends.

Undo what Wilson did

I guess that 1grAu 1ozAg is an natural upper limit

http://pricedingold.com/silver/

Wild manipulations by central planners exceeded market limits and distorted timings.

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The ratio today is 66:1

I watch the charts too, and seeing the swings in prices recently has me paying more attention. I did not notice that move on Wednesday, but I think i read somewhere recently where JPMorgan thinks the true ratio is 5:1. SO.........
Keep on checkin and postin.

Ron brought the Liberty movement together, Rand is expanding the crap out of it! :)

What does it matter?

Doesn't Rothschild own 90% of the world's silver and gold? One of them wakes up in the morning, sticks his finger out the window, and decrees what the price of gold and silver shall be that day. That's why he sent pied pipers to lead the people to a gold standard, where we get sold a "new" monetary system but the same old masters.

I agree. The world should return to a gold standard.

When there is an immobile foundation that functional paper currency is built upon there is little room for error.

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Dec 12 - More Breakout

Gold and silver both spiked after the big fed announcement of another $45B per month stimulus. However, gold returned basically to where it had been, ending up just $1.20, while silver stayed up and ended up over 1%!

This is the first day's chart since I first posted this that had this kind of noticable non-correlation.

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Silver will be in parity with gold soon !

It's just a matter of time when it happens, in fact I believe silver will pass gold in price. According to the USGS silver mines will be finished in 20 years, and all easy silver will be gone.

Most don't know that JP Morgan has doubled it's paper short position to keep silver suppressed. their is a real fight between paper and physical silver going on.
http://www.youtube.com/watch?v=R-mxZdVpx0s

The paper printing system is in real trouble because people are starting to demand physical silver. JP Morgan is going to need a bailout soon, their too big to fail, don't ya know!

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50

I looked at the recent chart of gold/silver. Nothing weird that I see. In the last five years, the ratio has been as high as 80 (during the Panic of '08) and as low as 30 (during the "Crash JP Morgan" mania). The average for the last hundred years is around 45. Currently it is at 50.

There was an FUBM on Wednesday. Silver recovered more quickly than gold. Nothing unusual about that either.

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You're not nuts

And I not sure if it's huge, but it got my attention also.

The evidence is sketchy

Two days can be a simple blip. Two weeks may be a trend. Two months may be a missed opportunity.

The mechanics of the silver/gold/dollar relationship says that gold should appreciate versus the dollar because the dollar is being counterfeited while gold supplies remain stable, and silver should appreciate versus gold because silver is becoming more scarce due to production not keeping up with consumption.

There are a lot of powerful people and institutions that will try to game the system for short term gains. The price of silver or gold at any given point in time could just be a reflection of that game playing, but the fundamentals dictate that the game must end with the dollar going down, gold going up, and silver going up even more.

Impossible to tell the timing. It could be next week. It could be years. I believe in precious metals as long term security. I don't much care what the short term fluctuations are.

A computer versus computer market

A lot of what shows up on charts has nothing at all to do with humans buying and selling silver, it is a reflection of one computer telling another computer how much paper silver it wants to buy or sell. And, all this with measures in place to shuffle paper quickly enough to cover anything significant that happens in the physical market.

Your s/g/d explanation is spot on - with a few humorous twists thanks to market manipulation. The worthless dollar is still the only widely accepted currency, the gold is floating out to sea apparently, and silver can't be scarce - look how cheap it is! What a world!

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Sorry, going to have to vote "nuts." Check out this chart.

http://seekingalpha.com/article/422081-324-years-of-the-gold...

A couple years back we decided to exchange the very small amount of gold we had for silver - the ratio then was 80:1. There is an historic chart for the ratio in the middle of this article where you can see the whole thing in perspective.

Understand that the silver market is the key to their Ponzi scheme. It will come down, but it will be the last thing to go. When they lose control of the silver market their entire fiat system will come undone. But they have been playing this game since the late 1950's now, they may play it long enough for all of us to die of old age.

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You're nuts. Back in July it

You're nuts. Back in July it was almost 59 to 1. I also watch the GSR. It is one of the best ways to increase your stack. I tend to look at the bigger picture. It is hard to predict small movements. I would wait until it broke through 70 to 1 before I would transfer gold into silver. This would leave you enough spread to transfer it back to gold when the spread decreased to the low thirties.

I know I'm nuts dummy

tell me something I don't know duh.

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Hopefully you didn't buy a

Hopefully you didn't buy a bunch of silver at 45 an ounce. I bet you would feel like a real dummy :) Looks like your prediction is wrong. I'll tell you what, you would have to be a complete moron not to buy at these prices. Silver is on sale!

Just as a casual observer...

I noticed silver breaking away on the charts at kitco.com - thursday I believe gold dropped a bit while silver remained steady, also earlier this week gold was up 1 and silver 3? Two breakaway events in one week?

Just two more for the history books most likely...

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Changing Chart Scales

One thing about the Kitco charts is they change the scale on the left every now and then to accomodate moves in price. One day the price is zooming with $.10 increments, next day with $.50 increments, not so much.

You asked "Is this huge or am I nuts?"

Then get snarky when someone tells you the truth. Now I am sorry I replied, I thought you were seeking input.

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Sorry about that.

Forgot I asked that question in the post.

Unfortunately it's a symptom of being a loonbat like myself that I ask questions like that then forget about it immediately after.

Still, you've got to admit that the gold and silver charts, held next to each other, are doing things throughout the course of a trading day that they do very infrequently, and now 2 days in a row...

I expected to see an article on this on kitco but perhaps too soon so I thought I'd be the first and be either famous if it was true or forgotten if not - I'll take either one.

If this pattern (or rather non-pattern) continues into Friday I'm sure someone else will notice.

Go SILVER WHOO HOO!

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Ah, loonbattiness I can relate to.

Apparently there was a flash-crash in silver last week, so fast it got erased from the charts in about 20 minutes (something I heard on Max Keiser, can't source it at this point - sorry.)
I am a HUGE supporter of stacking silver - kinda got in trouble here at the DP a couple years ago for it. That said, I am also the daughter of a man who got tipped off to the silver shortage in the late 1950's. He never really discussed it with me, but he stacked silver his entire life and died waiting for the manipulation to be exposed. I am keenly aware that it may be my fate, also. However, WHEN it happens, even people with a few ounces will find out just how valuable silver really is. Just between you and me and everyone else who reads this... I believe there is a golden tail wagging a silver dog at this point. We were running out of silver in the 50's, and rather than treating it as precious and rare, the market was manipulated and usage has soared. When we finally get an actual accounting of how much silver is left, it will change the world.

Love or fear? Choose again with every breath.