Currently Gold/Silver and Gold/Copper are heading in the opposite directions. I think it’s just silver bugs getting hysterical, but I have a bias – I sold my silver a day before last 5% move. What Gary thinks?
Gary April 5, 2023
Well, I would think that too Armen, but the caveat about that is that silver never really did participate as an inflation trade since mid-2020. Instead, it acted more like gold and corrected while Oil, Copper, etc. kept going up. So I am giving Ag some benefit of doubt now. It has been wearing its precious metals suit through the inflation (unlike in 2011 when it rocketed and blew off to 50) and correction, so why can’t it wear that suit now? I would expect it to weaken relative to gold when deflationary pressures come ashore.
Currently Gold/Silver and Gold/Copper are heading in the opposite directions. I think it’s just silver bugs getting hysterical, but I have a bias – I sold my silver a day before last 5% move. What Gary thinks?
Well, I would think that too Armen, but the caveat about that is that silver never really did participate as an inflation trade since mid-2020. Instead, it acted more like gold and corrected while Oil, Copper, etc. kept going up. So I am giving Ag some benefit of doubt now. It has been wearing its precious metals suit through the inflation (unlike in 2011 when it rocketed and blew off to 50) and correction, so why can’t it wear that suit now? I would expect it to weaken relative to gold when deflationary pressures come ashore.