5 replies to this topic

[TechSkeptic]

If you look at a chart of gold vs. silver, it's obvious that gold is in a nice linear uptrend, grinding it's way slowly higher. Whereas, silver has gone absolutely parabolic in a move that doesn't look very sustainable at all. If anyone has any opinions or links as to the reasons (fundamental or otherwise) behind this, that would be interesting reading.

[Mike]

According to Steve Saville (speculative-investor.com), silver stocks greatly outperform gold stocks at the end of a precious metals rally. The money apparently shifts to the most speculative stocks, e.g., gold juniour & silver.

[Rock]

I think pecious metals and their stocks follow a different pattern analysis than stocks or their averages. Numerous chart calls on this board have failed over the last months. A look at the historicals shows unbelievable parabolics. They either seem to move like JDSU in 1999 or don't bother.

[uncleharley]

Here is a link that might give you some infoyou don't have. http://www.silver-investor.com/
I don't think that anyone knows the reason for the divergence, but two theories seem to be dominant. The first was mentioned above, that Silver gets frothy just before a top blows off in precious metals. The second is that because the world economy is growing there is a growing industrial demand for silver as well as speculators buying silver as a precious metal.
I'm not believing either theory, but wdik.

[thoughtpwr]

ONE REASON SILVER SHOULD OUTPERFORM GOLD OVER THIS BULL MARKET IS THAT THE LONG HISTORY OF THE OLD TOP SHOWS A RATIO OF ROUGHLY 800/50 = 16 AS THE TARGET RATIO. BASED UPON THE CURRENT PRICE OF ROUGHLY 6 FOR SILVER, THEN GOLD SHOULD BE AT 96. WELL, ITS A LOT HIGHER, SO THE GREATER GROWTH IN THE END GAME WILL HAVE BEEN HAD BY SILVER. BUT ON THE DOWNSIDE IT WILL GET HIT MORE IN CORRECTIONS. I KNOW THAT DINES HAS GIVEN AN "ULTIMATE" TARGET OF 3000 ON GOLD, WHICH PUTS THE PRICE OF SILVER AT 186 RELATIVE TO 6 TODAY. THAT'S A FACTOR OF 30. I WOULD SAY THAT IF THAT HAPPENS, WE WILL HAVE WORTHLESS PAPER AND OUR POCKETS ARE GOING TO BE FILLED WITH SILVER OR GOLD COINS WHEN WE GO TO THE STORE. EITHER THAT OR THE CREDIT CARD WILL BE AN EXCHANGE OF OUNCES OF SILVER OR GOLD IN OUR CREDIT CARD TRANSACTIONS. IT PUTS NEW MEANING TO THE "GOLD CARD". EJ

[swanstkdh]

LOOKS LIKE DIVERGENCE TO ME. what do you see as a short term support? 222 hui