BTFD !

[Seraphim]

http://www.kitcosilver.com/

1:54 G to S ratio...the further that elastic stretches, the harder it will snap back.

[ctb619]

I'm about to pick up a bit more.

Any theories for the cause of the dip today?

[ctiger2]

I'm waiting for the Euro to crash which will cause the USDX to spike causing PM's priced in USD to crash. Looking for $24 silver & $1450 Gold. Patience is a virtue...

[erowe1]

http://www.kitcosilver.com/

1:54 G to S ratio...the further that elastic stretches, the harder it will snap back.

But 1:54 is pretty normal for what it's been over the past 20 years isn't it?

[HOLLYWOOD]

I'm waiting for the Euro to crash which will cause the USDX to spike causing PM's priced in USD to crash. Looking for $24 silver & $1450 Gold. Patience is a virtue...On it's way down now...Palladium falls 7.8%, most since May 2010

http://www.google.com/finance?q=INDEXDJX:.DJI,INDEXSP:.INX,INDEXNASDAQ:. IXIC

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/10/ES%2011.17_1.jpg

[Seraphim]

Yes, but that trend has been reversing.

This is 54-1 after 2 DEEP corrections in silver (far, far more than gold).


But 1:54 is pretty normal for what it's been over the past 20 years isn't it?

[Seraphim]

The TSX and DOW are both down pretty big. Silver tends to react to stock indices moving more than gold.

Although the "monetary" aspect of silver is most definately re-emerging, it's still closely tied to industry.

Additionally, the silver market is TINY compared to a lot of commodities. High volume sell days (and buy days) have huge impacts on the price.

Additionally, a lot of investors DO use silver ETF's as a form of highly liquid "cash" that gets sold off when margin calls come in or cash needs to be raised.

BTFD!


I'm about to pick up a bit more.

Any theories for the cause of the dip today?

[swissaustrian]

It´s a money market problem which means people are liquidating every spec position they have. I don´t think this will last long for PMs. They´ll probably decouple from the rest soon:
http://www.zerohedge.com/news/global-dollar-liquidity-freeze-leads-pervasive-liquidations

[Acala]

The coming Eurozone defaults are going to dominate everything very shortly, and probably drive down gold and silver prices as all the gamblers liquidate everything to pay off losses. I am guessing some real buying opportunities coming around the bend along with some real nastiness.

[Seraphim]

On the flip side, the support is so huge for physical, that once it starts hitting low 20's$ per ounce...good luck getting the phizzzz.

The Titantic is sinking and there aren't enough lifeboats.


The coming Eurozone defaults are going to dominate everything very shortly, and probably drive down gold and silver prices as all the gamblers liquidate everything to pay off losses. I am guessing some real buying opportunities coming around the bend along with some real nastiness.

[seraphson]

I'm waiting for the Euro to crash which will cause the USDX to spike causing PM's priced in USD to crash. Looking for $24 silver & $1450 Gold. Patience is a virtue...

Call me crazy but I too was holding my ground until I saw mid $20's again. The first time I watched silver (August this year about) and all this dooms day talk on crashing markets I bought in at $42 oz...with 72oz...This might set things back on track.

[Acala]

On the flip side, the support is so huge for physical, that once it starts hitting low 20's$ per ounce...good luck getting the phizzzz.

The Titantic is sinking and there aren't enough lifeboats.

Yes. It might be a very short window. As paper PM prices drop with the sell off, physical will probably follow it down, for a time, and then break free as the paper products prove to be backed by vapor. During that window when physical prices are still somewhat linked with paper prices, you might find bargains at the local coin shop. Once they break loose, forget it.

[Seraphim]

^^ exactly.

[xFiFtyOnE]

Just bought 5 more oz's today. I hope it goes down even further. :)

[The Freethinker]

Just bought 5 more oz's today. I hope it goes down even further. :)

So did I. And if our fellow silver buyers are correct in silver hitting the mid-20s should the Euro crash... I'm buying 100 ounces at least.

[swissaustrian]

Once again, PMs hit their intraday lows at 10 am which happens to be the London pm gold fixing:
http://www.kitco.com/images/live/nygold.gif

This trading pattern occurs with such a statistical significance that it could be traded, see here the 10 year intraday average condensing more than 3000 trading days:
http://www.seasonalcharts.de/img/INTRADAY/XAU.GIF

[swissaustrian]

And now gold and silver went from beeing the worst performers of the day at 10 am to beeing the best performers at 11:45 am. It´s always the same.

[ctiger2]

If you don't have any you should be buying. If you have some, you have the luxury to wait for another big correction. It's entirely possible the correction never comes or if/when it does come there won't be any physical available. If it does happen, the window will close pretty quick I think.

[Bern]

But 1:54 is pretty normal for what it's been over the past 20 years isn't it?

http://www.gold-eagle.com/charts/GSR-GM.gif

also: http://www.taxfreegold.co.uk/goldsilverratioshistoric1970onward.html

IMO, Considering only the last 40 years or so since the demonetization of gold and silver is not necessarily going to be instructive of what to expect should the world turn back and re-monetize the metals as Rickards, Salinas and others are suggesting.

http://lib.store.yahoo.net/lib/rarecoins/650-Silver-Prices.gif