A new subscriber had a question as to the point of yesterday’s update about the Silver-Gold ratio and so I want to try to be clearer for other newer subscribers. The statement in question was “But until the Silver-Gold ratio breaks out, it has not broken out.”
I sometimes make assumptions (on the fly) that people know the points I am trying to make since I am so redundant with them over time. But newer subscribers have not had the repetitions to get in tune with the themes. So here is my response just to be clear…
“What I am trying to convey is that this burst is all well and good but until the silver-gold ratio breaks out and holds a trend change then the big burst in the inflation sensitive items is not yet confirmed. My apologies, as I sometimes assume people are in tune with the themes because I repeat them frequently. I realize you are a new subscriber. Please feel free to ask Q’s any time.”
When silver starts to rampage it signals that people are gulping down the precious metals in a panic. With junior and exploration stocks going off like bottle rockets, we can see that ending action is likely in play.
But here, for the sake of longer-term traders/investors I want to repeat that if this is ending action, it is likely within a launch phase as we noted earlier in the year. The ending action in silver and commodities in early 2011 was terminal. There is a big difference here.