G0ldfinger

Remember last time? Something similar happened only minutes after I put in a trade. Creepy.

Maybe an attempt to use thinner trading since the LBM is closed?

If it keeps doing this for a few days in a row, I'll go back in...

Ratio at 36:1. Wow!

I have arranged to swap another smaller amount of silver for gold. I am now value-wise over 50% in gold again. I still hold a shed load of silver. Let's see how it will fare tomorrow morning when the LBM will be closed.

Thanks. Will read. EDIT: Read. Sprott truly is a silver bull!

The Hunt for the Gold:Silver Low http://gold.approximity.com/The_Hunt_for_the_Gold-Silver_Low.html

Yes, 100% guaranteed.

The Buffett spike was much more pointed too (towards the end). http://gold.approximity.com/SilverSpike1998/Gold-Silver-Ratio_LOG.html http://gold.approximity.com/since2010/Gold-Silver-Ratio_LOG.html

How can you be sure it is the right time to do it with 100%? Better space it out, with goal posts that need to be reached. I think a low of the ratio will be at 15:1 or lower.

Note in this chart that there was an enormous spike November of last year too, and after a brief correction the silver rocket just continued its flight to da moon.

In the King World News weekly metals wrap Bill Hanes also said that they were almost overwhelmed by retail silver selling. But it is conflicting news. On the one hand people like you sell retail and there is huge demand. On the other hand there is massive selling at the retail level (see Bill Hanes). Then you have the rumours, like the one from Frizzer's London source, telling us that the Chinese or someone big is sucking it all up. A run-up in silver like this usually ends in a loud bang. I am not sure whether we're at the bang yet. But the run-up has been huge, and there is no real short squeeze in the sense of a panic yet. The 2009 chart I posted yesterday indicates that we could still enter a vertical phase a la Hunt towards the end of this run-up, but it is not a given.

Jake Do this at your own risk. In all fairness, even during the Hunt run-up there was a little break inbetween. We didn't really have a break now for 8 months. So that is somewhat concerning. But if gold shoots up now, which quite a few commentators that I listen to seem to expect, any silver lagging/correction might be very subdued. Maybe silver would go down to $45, and just stay there, while gold could go to $1,800, bringing the ratio back to 40:1. Then silver could play catch up again. Would this be tradeable? Maybe almost not, also depending very much on your transaction fees, especially if we're talking coins or similar here. For me, as an actual Silverfinger, the question here is whether I'll swap a little more, turning myself in a true Goldfinger again. Even if I did so, I'd still have a lot of silver left to ride the ratio down (20:1, 15:1, 10:1?) should it happen.

http://www.traderdannorcini.blogspot.com/

Dan Norcini:

If someone traded now at 32:1, swapped again at 60:1, and then again at 14:1, if he/she got that lucky and would have the stomach to do this, that'd be one of the trades of the century. And I am not a trader...

The average ratio since 1885 is 45:1, or so. Maybe we're going to see some kind of inverse of the early 1980s: first back to 60:1, then down to 14:1. Then back up.

This is the biggest spike down in the gold:silver ratio since the Hunt spike in 1979. 2011: 68:1 down to 31.44. A drop of 53.82% in approx. 8 months time. 1979: 33:1 down to 13.99. A drop of 56.61% in approx. 5 months time. What do you do as someone who trades the ratio every now and then? From the OI, this is no real short squeeze yet. Also, look at the 2.33 years chart in the middle below (since 2009) -- this is much more sustained than in 1979-80 (last chart below). I am somewhat tempted to swap even more silver now that I have made this comparison. But of course we're still way off the 1979 low in gold:silver. Interesting times. EDIT: In all fairness, this could become the JPMorgue spike: the biggest spike down ever. http://gold.approximity.com/since2009/Gold-Silver-Ratio_LOG.html http://gold.approximity.com/1979-1980/Gold-Silver-Ratio_LOG.html

That's what I am doing. Sometime I am adventureous to think that silver might still not be done as money though.

If so, STRONG buy!

Buahahaha. My guess is that's much more than what most on here paid for their bullion per ounce.

Now, if this is not an interesting rumour, then what is?

Very interesting chart.

DOUBLE POST I mean, it is really hard to comprehend that the silver shoot up so far has NOT been a short squeeze (see e.g. Dan Norcini's blog). If gold continues to rise, and silver does too in sympathy, then we could see a squeeze coming. I think we'd see silver $200/oz in that case, and I mean short term, this year. But the JPMorgue will throw the sink at silver to prevent this. In fact, they're doing so already.

I know people older than this who have tried or still try to get out. I myself packed up shop, although I wasn't a native.