Thursday, September 22, 2011

Silver:Gold Ratio Drops As Paper Comex Silver Is Crushed Downwards

Well, here is a new update on the silver to gold ratio.  Previously I mentioned that Gary from was looking for the gold to silver ratio to rise further while I have been looking for the opposite.

Well today, Gary got it right and in a big way.  The GSR (gold to silver ratio) shot much higher today as silver was hammered 10% lower in one trading session.  Let's not forget that The DJIA was down around 400 points and gold sold off as well, only as usual, silver sold off the most.

I don't think this is a coincidence either.  Silver is a much smaller and therefore more easily manipulated market than gold.  Whenever the opportunity is right, such as this new deflationary impulse we are experiencing, silver is always hit the hardest and always declines fastest and furthest.

I suppose this will continue to happen until the day comes when the silver price is set in the cash market and not on the Crimex (comex).  Until such time, you can expect the Federal Reserve's right hand bank, JP Morgan, to sell as much paper silver as required to keep a lid on prices and keep silver in the dark.

Hats off to Gary at Biiwii for his call on the GSR.  I have posted a couple of charts below of the weekly Silver:Gold ratio (SGR).

The first chart shows how the SGR broke the uptrend line today.  The second chart shows a continuation of what looks like a bullish falling wedge which I expect to resolve to the upside once this deflationary scare has played out and the Federal Reserve starts printing money and bailing out more failing financial institutions.

Got Silver? Got Gold?

Tuesday, September 13, 2011

Silver:Gold Ratio Chart Update

While Gary at biiwii is flashing a warning, I am flashing an opportunity signal. Gary is my silver contrarian indicator :)

In other words, I'm looking for Silver rise in terms of gold while he is looking for it to fall......... see gary's latest post on it here
Now, Gary did not outright make a call on where it will go, because he is too unemotional for that. This is a good thing and serves him well. He does make the case though that

"The GSR has a bullish look about it as it consolidates the initial impulse higher. Of course NFTRH was all but certain of a new uptrend after the consolidation out of 2008, until the Wizard pressed the QE button on his console behind the curtain."

Now of course the GSR may just break higher like Gary suggests, in which case, we are all Fu Ct.  If Silver:Gold breaks higher, than we can expect more inflation on the way to hyperinflation.

Monday, September 12, 2011

Are We Nearing The End Of The Silver Gold Ratio Correction?

Sometimes things just don't "feel" right.  Like the fact that most people do not view silver as money.  The fact is that throughout history, silver has always been used as money.  More so than even gold.  So how could silver get pushed so far away from its monetary roots?  That is a story for a different time and place, but for the moment, it appears that we are approaching another point of inflection where by silver is going to resume it's move toward a monetary metal and hedge against systemic failure of a doomed fiat monetary system.  Do you really trust holding all of your "money" in a bank account of electronic digits that are being continually debased by fiscal imprudence and outright theft by electronic currency printing thanks to Big Ben Bernanke and his state of the art electronic printing press?

Take a look at this chart of the Silver Gold ratio which shows the value of silver in terms of gold.  As silver was running up from $5 to $50, the correlation between MACD to the Silver:Gold ratio was astounding.  In fact it was almost perfect.  But a funny thing happened since silver was smacked down with the collusive raid on paper silver prices by the corrupt CME who raised margins over and over until they got sufficient downside price manipulation in the paper silver market.

That funny thing is that the MACD went down much further than the ratio of SLV to GLD.  In other words, it looks to me like the ratio of Silver to Gold price did not confirm the much more dramatic drop in MACD for the same period.  This suggests to me that the silver to gold ratio is not looking to continue downward with gold prices outperforming silver prices in terms of fiat U.S. shit Currency also known as Federal Reserve Notes.  I call them FRN's.

With this I now see a good chance that silver will once again begin to outperform gold as gold rises against the trashy U.S. Dollar and Silver rises against gold and the dirty dollar.

So once again I will ask you, are you ready?  Got Silver? Got Gold?   OR ...... are you still banking on the piece of crap U.S. Dollar?

Friday, September 9, 2011

Silver A 30 Bagger From Here

That puts Silver at a price of $1200 U.S. Fiat Federal Reserve Notes.  So says billionaire Eric Sprott who is heavily invested in Silver, Gold and Silver & Gold stocks.

Read his interview on KWN here

Got Silver? Got Gold?

Wednesday, September 7, 2011

Silver To Gold Ratio Coiled Like A Snake Ready To Strike

Silver To Gold Ratio Chart Update:  This pattern continues to coil and may finally be on the verge of breaking out and upward.  Once this happens, look for silver to jump rapidly toward $50.00 per ounce as measured in FIAT shit U.S. Federal Reserve Notes.

While gold is being manipulated lower by the central banks with a massive raid in the evening where they unloaded over 4000 gold contracts at time of low liquidity in order to achieve maximum smack down effect, silver is only down about 50 cents or a little over 1%.  gold is down over $60 per ounce or more than 3.5%.

This has the looks of an upside silver breakout coming soon.  Here is the chart for today.

Saturday, September 3, 2011

Quick Update On Silver Gold Ratio - Updated Chart

Here is the daily chart of the silver:gold ratio updated for the weekend.

It looks to me like silver in terms of gold is coiling like a massive spring ready to jump much higher and soon.

Got Silver? Got Gold?