{"id":31905,"date":"2018-03-04T15:48:24","date_gmt":"2018-03-04T20:48:24","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31905"},"modified":"2018-03-04T15:48:36","modified_gmt":"2018-03-04T20:48:36","slug":"silver-looks-way-better-than-gold-right-now","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31905","title":{"rendered":"Silver Looks Way Better Than Gold Right Now"},"content":{"rendered":"
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Silver Looks Way Better Than Gold Right Now<\/a><\/h3>\n<\/header>\n
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Normally the action in the gold and silver futures markets tends to be pretty similar, since the same general forces affect both precious metals. When inflation or some other source of anxiety is ascendant, both metals rise, and vice versa.<\/p>\n

But lately \u2013 perhaps in a sign of how confused the world is becoming \u2013 gold and silver traders have diverged. Taking gold first, the speculators \u2013 who tend to be wrong at major inflection points \u2013 remain extremely bullish. Commercial traders, meanwhile \u2013 who tend to be right when speculators are wrong \u2013 are extremely bearish, with short positions more than double their longs. Historically that\u2019s been a setup for a big drop in gold\u2019s price.<\/p>\n

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Viewed as a chart with the gray bars representing speculators and red bars the commercials, and where divergence is bearish and convergence bullish, the result is pretty ugly.<\/p>\n

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But now check out silver. Where gold futures speculators\u2019 long positions are three times their short bets, silver spculators are actually more short than long. In other words, the people who are usually wrong are bearish. The commercials, meanwhile, are almost in balance, which is usually bullish for silver\u2019s subsequent action.<\/p>\n

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Shown graphically, speculators and commercials are meeting the middle at zero, something that\u2019s both very rare and very positive.<\/p>\n

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What does this mean? One possible explanation is that silver has gotten too cheap relative to gold and needs to be revalued. That could happen in several ways, with both metals rising but silver rising more, or both falling but silver falling less. Or<\/em> with gold dropping while silver rises, as improbable as that seems.<\/p>\n

As the chart below illustrates, gold has recently been rising relative to silver (or silver has been falling relative to gold) with the gold\/silver ratio now close to 80, meaning that it takes 80 ounces of silver to buy one ounce of gold.<\/p>\n<\/div>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Silver Looks Way Better Than Gold Right Now Normally the action in the gold and silver futures markets tends to be pretty similar, since the same general forces affect both precious metals. When inflation or some other source of anxiety is ascendant, both metals rise, and vice versa. But lately \u2013 perhaps in a sign […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[14803,7583,374,7544,647,730,4806],"class_list":["post-31905","post","type-post","status-publish","format-standard","hentry","category-economics","tag-dollar-collapse-com","tag-futures-market","tag-gold","tag-john-rubino","tag-precious-metals","tag-silver","tag-speculation"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31905"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31905\/revisions"}],"predecessor-version":[{"id":31906,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31905\/revisions\/31906"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}